CMG Mortgage acquires Homebridge's retail division

CMG Mortgage has purchased the retail origination business of Homebridge Financial Services for an undisclosed sum in a transaction involving two of the larger independent mortgage bankers making moves during a busy merger and acquisition period.

The deal brings Homebridge's more than 180 retail branches nationwide to CMG, the companies announced Monday. Homebridge will retain its two wholesale divisions, Homebridge Wholesale and REMN Wholesale; CMG has its own correspondent, retail and wholesale channels.

"From our shared heritage as privately held mortgage companies to our common focus on excellence for our customers and our employees, I am certain that together we will create meaningful opportunities for innovation and growth," said Christopher M. George, founder and CEO of CMG, in a press release. 

The San Ramon, California-based CMG originated more than $19 billion last year, it said, and is licensed to originate loans nationwide. Homebridge, based in Iselin, New Jersey, originated $12 billion in 2022, the release said. The lender, founded in 1989, also counts 1,941 employees on LinkedIn.

A spokesperson for Homebridge Tuesday said the terms of the deal are not public and did not say whether a headcount adjustment would occur with the move. A representative for CMG didn't return a request for comment.

The acquisition comes nine months after Homebridge and fintech Figure Technologies ended plans for a proposed merger over delays in closing as the mortgage market began to slide. At the time, both companies said they would maintain a partnership for FIgure's blockchain integrations and home equity line of credit offerings. 

With Monday's deal, Homebridge CEO Peter Norden will act as executive director for CMG's retail division, the companies said. 

"CMG is a company that we have always had deep respect and admiration for," said Norden in a press release. "Giving our retail sales team the opportunity to join forces with Chris George and his incredible team will position everyone for success in an ever-changing market."

Lenders facing drastically reduced demand and high interest rates have sought lifelines in mergers and acquisitions, and STRATMOR Group predicts almost 60 such moves in 2023 after more than 42 closed last year. CMG and Homebridge are likely the largest originators involved in a single transaction, topping smaller deals from companies like American Pacific Mortgage, Guild Mortgage and Union Home Mortgage.