New American Funding, already one of the biggest lenders in the nation, is set to expand even more, as the company announced Tuesday that it acquired Marketplace Home Mortgage.
Marketplace is based in Minnesota, has offices in Florida, Michigan, New Hampshire, South Dakota, and Wisconsin, and does business in 15 states.
Last year, the company originated just under $1 billion in mortgages, ranking it 264th in the nation, according to data provided to HousingWire by iEmergent.
Now, the company is being acquired by New American Funding, which ranked inside the top 30 last year. New American Funding originated more than $9.1 billion in mortgages last year, has a servicing portfolio of more than 108,000 loans for $27 billion, approximately 185 branches, and about 2,900 employees.
Marketplace President Keith White said that being acquired by New American Funding will help the company grow in a tougher mortgage market.
“Becoming part of New American Funding accelerates the growth plans we put into place several years ago,” White said. “The current market is one that some lenders view as challenging, but we view it as a magnificent opportunity that is increased by the industry-best platform brought by New American Funding.”
New American Funding CEO Rick Arvielo said the company views the acquisition as the right move to help the lender expand its reach.
“We felt now was the right time to combine forces with a lender such as Marketplace Home Mortgage,” Arvielo said.
“We’ve always grown organically and have been very selective about this type of move in the past,” Arvielo continued. “But due to the cultural and business alignment of both brands, coupled with the geographic advantage, we determined this was an excellent opportunity.”
Financial terms of the deal were not disclosed.