Annaly Capital Management and Bayview Asset Management announced Tuesday that the companies reached an agreement that will see Bayview acquire Pingora Holdings and its subsidiaries from Annaly.
Two years ago, Hatteras Financial, a real estate investment trust, acquired Pingora, and its subsidiaries, Pingora Asset Management and Pingora Loan Servicing.
And last year, Annaly acquired Hatteras Financial (and therefore Pingora) for $1.5 billion in a deal that created the “the “largest, most liquid and diversified mortgage REIT in the world.”
Now, Annaly is selling Pingora, a specialized asset manager focused on investing in new production performing mortgage servicing rights and servicing residential mortgage loans, to Bayview.
As part of the deal, Bayview will service some number of mortgages on behalf.
In a statement, Kevin Keyes, Annaly’s CEO and president, detailed that portion of the deal and described why Annaly pursued the deal.
“This transaction exemplifies our strategy to partner with industry leaders across our diversified investment platforms to efficiently allocate capital, minimize operating risks and optimize returns for our shareholders,” Keyes said.
“We are pleased to have the expertise Bayview brings as a premier residential mortgage loan servicer for the MSR assets we own through our ongoing joint venture with a leading sovereign wealth fund,” Keyes continued. “This strategic transaction represents the beginning of a unique and compelling partnership for all stakeholders.”
Bayview CEO David Ertel said the deal is beneficial for all parties involved.
“We are delighted to partner with Annaly in this important strategic transaction,” Ertel said in a statement. “Together, Bayview and Pingora are uniquely positioned to provide MSR capital solutions to the mortgage banking industry.”
Michael Lau, the CEO of Pingora, added that the company is “excited” about its next phase.
“We are excited about combining Pingora’s best in class technology and MSR acquisition platform with Bayview’s proven asset management and capital raising abilities to create the industry leading MSR acquisition and management platform,” Pingora said.
The companies expect the deal to close in the third quarter of 2017.
Financial terms of the deal were not disclosed.