SoFi Technologies announced Monday that it had acquired fellow digital lender Wyndham Capital Mortgage in an all-cash transaction.
The acquisition will allow SoFi to broaden its suite of mortgage products available to members, enhance unit economics, and take ownership of a scalable digital mortgage platform, the company said in a statement. In doing so, SoFi will rely less on third-party partners and processes.
Terms of the deal were not announced, and as of 11 a.m. EST, SoFi did not offer additional details through an 8K disclosure with the Securities and Exchange Commission.
Rumors of the deal began circulating on social media last week.
Like most mortgage companies, Wyndham’s origination volume has been falling since 2021, when it notched $6.45 billion in production — the bulk of it in refinancings, according to Modex. Volume fell to $2 billion in 2022, with the company dropping from about $300 million per month in the early part of the year to below $50 million a month in the fourth quarter.
There were several rounds of layoffs last year at the Charlotte, North Carolina-based retail lender, which has a direct-to-consumer model as well as nine retail branches.
Founded in 2001 by Jeff Douglas and licensed in 48 states, Wyndham positioned itself as a fintech-focused mortgage lender with a proprietary software system that allows the company to close loans 20% faster than the national average.
Its scalable digital technology platform appears to be what SoFi – whose mortgage business has also been shrinking – coveted most.
“Today’s acquisition of Wyndham Capital will not only allow us to scale and keep pace with accelerated growth, but also allow us to foster that growth in a way that brings value to our members through sales and operational efficiencies and helps members get their money right when it comes to one of life’s most significant financial milestones,” SoFi CEO Anthony Noto said in a statement Monday.
SoFi said it will be working to integrate Wyndham Capital’s team and technology platform into the company’s lending business. Several executives who were key to Wyndham’s expansion, including former head of retail Karen Mayfield and former VP of direct-to-consumer sales Donny Kirby, have left the company.