Union Home Mortgage acquired Amerifirst Home Mortgage, per an announcement published Wednesday.
UHM and Kalamazoo, Michigan-based Amerifirst share some similarities: both companies are primarily focused on the USDA market and both have been in the mortgage business for more than two decades.
Their union will allow UHM to expand its national reach to markets in Florida, Michigan, Ohio, North Carolina and California.
"Our company lives by the mantra of 'Promises Kept,' which includes promises to our customers, communities and colleague partners. Today, I am thrilled to expand the reach of that promise further," said Bill Cosgrove, CEO of Union Home Mortgage, in a written statement.
For Amerifirst, the acquisition will bolster its origination capabilities, according to Mark Jones and David Gahm, its founders.
"This partnership gives us the scale and ability to make an impact like never before," said Jones and Gahm in a written statement. "UHM has built a platform that is really unique and powerful in our industry. Coming together made all the sense in the world."
UHM claims to originate more than $13 billion in volume each year. Amerifirst originated $2.8 billion in 2021 and $3.3 billion in 2020, a press release from the two companies said. Specific details about the acquisition were not disclosed.
Prior to the acquisition announcement, Amerifirst had disclosed rightsizing measures.
The lender and servicer will
In a statement to
The deal between UHM and Amerifirst is likely not the last one that will happen in the industry. Margin compression which is expected to stretch into 2023 and 2024 will continue to drive industry consolidation, said David Hrobon, principal at STRATMOR, in a
"By the end of 2022, we anticipate that nearly 50 M&A transactions will be announced or closed," Hrobon said. " All signs are pointing toward a robust M&A market in 2023 as well."
