Carmel-based Merchants Bancorp has agreed to acquire Clearwater, Florida-based NattyMac LLC, a warehouse lender that is a wholly-owned subsidiary of Ann Arbor, Michigan-based Home Point Financial Corp.
"Merchants and NattyMac have had a long-standing relationship and funding partnership that has been beneficial to both of our organizations since 2014,” MerchantsCEO Michael Petrie said in a prepared statement. “We look forward to fully integrating all of NattyMac's operations under our corporate umbrella.”
NattyMac, which was established in 2004, has a historical connection with Indianapolis.
In 2012, Indianapolis-based Stonegate Mortgage Corp. acquired NattyMac for an undisclosed amount from New York-based Guggenheim Partners. Then, in 2017, Home Point acquired Stonegate for $211 million.
As part of the deal, Merchants has repaid Home Point the balance and interest owed on a $30 million subordinated debt that Home Point previously invested in Merchants via NattyMac. Other financial terms of the transaction were not disclosed.
The acquisition is expected to close by the end of the year.
Merchants Bancorp is the parent of a multi-pronged company that includes multifamily mortgage lender and servicer Merchants Capital; Merchants Bank of Indiana; and Warehouse Lending, which extends credit to loan originators for residential mortgages.
Warehouse lenders issue lines of credit to mortgage originators so that the originators can issue mortgages without using their own capital. When the originators sell the mortgages in the secondary market, they use the proceeds to pay back the warehouse lender.
Shares of Merchants Bancorp were trading at $21.75 Friday morning, up 15 cents from Thursday’s close.