Top markets for affordable renovated housing inventory

Despite the rapidly deteriorating affordability, there is some hope for homebuyers in the form of renovated homes: properties that have been rehabbed into move-in ready condition after being purchased at auction.

HousingWire Magazine: December 2021/ January 2022

AS WE ENTER A NEW YEAR, let’s look at some of the events that we can look forward to in 2022. But what about what’s next for the housing industry?

Back to the Future of Mortgage Lending

This webinar will be a discussion on understanding what’s to come in the future of mortgage lending by analyzing past trends in the industry, evolving consumer behaviors and demographics of the industry’s production capacity.

Logan Mohtashami on Omicron and pending home sales

In this episode of HousingWire Daily, Logan Mohtashami discusses how the new COVID variant, Omicron, will impact inflation and whether or not it will send mortgage rates lower.

IPO / M&AMortgage

AmeriHome could be valued at $1.3B following IPO

Apollo Global-owned mortgage lender and servicer to price between $16 and $18 as soon as next week

Lender and servicer AmeriHome on Wednesday laid out the terms of its upcoming initial public offering. The company plans to raise roughly $250 million by offering over 14.7 million Class A shares priced between $16 and $18, according to the amended S-1.

AmeriHome on Wednesday also revealed that mortgage investor Bayview Asset Management is prepared to purchase $50 million worth of shares in the offering, expected to price next week. AmeriHome, which is under the umbrella of private equity giant Apollo Global Holdings, is also expected to raise an additional $100 million in a concurrent private placement with Starwood.

Should the stock trade at the midpoint of $17 a share, AmeriHome would be valued at $1.3 billion.

The company is expected to make its debut on the New York Stock Exchange next week, trading under the ticker “AHM.”

The lender, based in Thousand Oaks, California, is a heavyweight in the correspondent channel, has a smaller consumer direct channel and sports roughly $88 billion in servicing volume. Overall production volume for the 12 months that ended on June 30 was $53.7 billion, according to the S-1.

AmeriHome produced about $27 billion in volume through its correspondent channel over the first half of the year – about 8% of the market, the company said in its S-1. That’s been the key in allowing AmeriHome to scoop up purchase loans. Last year, nearly 63% of AmeriHome’s production volume was in purchase loans through its correspondent channel.


What subservicing looks like during a pandemic

As the world continues to navigate the impacts of COVID-19, HousingWire sat down with TMS to learn more about their customer service philosophy and why proactively educating borrowers on forbearance is essential.

Presented by: TMS

Though correspondent is the bedrock of AmeriHome’s business, it’s direct-to-consumer channel is also growing quickly. Per the S-1, it’s up to $2 billion in originations through the D-to-C channel.

The majority of consumer-direct origination activity is refinancing its existing customers, AmeriHome said in its S-1. “By proactively offering attractive refinancing terms to existing customers, we can minimize MSR portfolio attrition and build customer loyalty by improving their mortgage experience,” the company said.

And the servicing portfolio – where it earns fees between 25 and 56.5 basis points – as of June 30 was $87.9 billion. AmeriHome uses the bank Cenlar to subservice nearly all of its loans.

Adjusted after-tax income in 2019 was $144 million, up from $89.3 million in 2018.

Other IMBs and servicers to file paperwork to go public in recent weeks include Caliber Home LoansFinance of America and United Wholesale Mortgage.

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