Large Bank Supervision Forum 2023

Internal Use Only

Mortgage company M&A has picked up – states are monitoring to ensure no consumer harm

Eligibility Standards Applicable to

Date

Subject Company

NMLS ID

Action

2/28/2023 JFQ Lending, LLC 2/21/2023 Keller Mortgage

1639493 140234 227765 249314 173946 145368 110139 4474

FHFA, Ginnie Mae FHFA, Ginnie Mae FHFA, Ginnie Mae FHFA, Ginnie Mae FHFA, Ginnie Mae FHFA, Ginnie Mae FHFA, Ginnie Mae FHFA, Ginnie Mae FHFA, Ginnie Mae Ginnie Mae Reverse FHFA, Ginnie Mae Ginnie Mae Reverse FHFA, Ginnie Mae

Acquired by Prosperity Home Mortgage, LLC (NMLS 75164) Acquired by Mutual of Omaha Mortgage, Inc. (NMLS 1025894)

2/15/2023 Celebrity Home Loans, LLC

Closed

2/10/2023 Rushmore Loan Mgmt Services LLC 185729

Acquired by Mr. Cooper Group (2119)

Acquired by Guild Mortgage Company LLC (NMLS 3274)

2/7/2023 Legacy Mortgage LLC 1/31/2023 R M K Financial Corp 1/26/2023 Lend Smart Mortgage, LLC 1/6/2023 Amerifirst Financial, Inc. (AZ) 12/21/2022 Amerifirst Home Equity Corp (MI) 12/8/2022 American Advisors Group 12/1/2022 Inlanta Mortgage, Inc. 11/30/2022 Reverse Mortgage Funding LLC 11/11/2022 Mortgage Network, Inc. 11/10/2022 Angel Oak Home Loans LLC 11/2/2022 Athas Capital Group Inc.

Closed; banned from doing business by CFPB in February 2023 order Assets acquired by American Pacific Mortgage Corp (NMLS 1850)

Closed

Acquired by Union Home Mortgage Corp (NMLS 2229) Announced acquisition by FoA Reverse (NMLS 2285) Acquired by Guild Mortgage Company LLC (NMLS 3274)

9392 1016

1019941

Ch 11

2668

Acquired by Movement Mortgage LLC (NMLS 39179)

Closing retail channel

685842 275237

FHFA

Non ‐ agency

Closed Closed

10/31/2022 James B. Nutter & Co

2067

FHFA, Ginnie Mae FHFA, Ginnie Mae FHFA, Ginnie Mae

10/21/2022 Finance of America Mortgage LLC 1071

Year ‐ end Closure

10/21/2022 LoanFront, LLC

2317572

Acquired by Marlin Mortgage Capital LLC (NMLS 1866663) Acquired Roscoe State Bank and merged into bank (now named Cornerstone Capital Bank) Owner acquired Allied First Bank (IL) renamed to ServBank and moved TMS subservicing to the bank Non ‐ agency platform and assets acquired by SPS (NMLS 3114)

10/1/2022 Cornerstone Home Lending, LLC

2258

FHFA, Ginnie Mae

9/15/2022 The Money Source, Inc

6289

FHFA, Ginnie Mae FHFA, Ginnie Mae

9/15/2022 Rushmore Loan Mgmt Services LLC 185729

Source: CSBS staff analysis

Internal Use Only

Issues we are watching in 2023

• Nonbank mortgage company financial condition • Origination volume and MSR transfers • Consolidation and closures among nonbank mortgage companies • Dislocation in reverse market (see e.g. recent RMF Ch 11) • Mortgage product creativity to survive high-rate environment • Cyber issues and attacks • Rising early payment defaults in FHA/VA portfolios • Impact of decreasing home prices, especially 2022 purchase loans • Anticipated rise in delinquencies / foreclosures and loss mitigation compliance