Chimera Investment Corp., a New York-based real estate investment trust, announced plans to buy non-QM lender HomeXpress Mortgage in a cash-and-stock deal worth over $120 million Thursday.
The deal, expected to close in the fourth quarter of 2025, includes a $120 million cash payment for the Santa Ana, California-based company, plus more than 2 million shares of Chimera stock.
Following the closing of the transaction, the non-QM shop will operate as a subsidiary of Chimera and will continue to be run by its CEO Kyle Walker.
HomeXpress Mortgage, founded in 2015, operates in both wholesale and correspondent channels and is licensed in 46 states and Washington, D.C. It employs just over 300 people. Since 2016, the non-QM and non-agency shop has originated more than $10.7 billion in loans. The REIT estimates the soon-to-be-acquired firm will originate nearly $3.5 billion in 2025, after originating $2.5 billion in 2024.
HomeXpress also creates mortgage servicing rights, which Chimera plans to retain as an investment and possibly use
"By retaining service, combined with our servicing oversight capabilities, HomeXpress would be able to maintain its relationships with the borrowers and present opportunities to provide additional products including second lien mortgages," Chimera wrote in a filing with the Securities and Exchange Commission.
HomeXpress Mortgage is expected to give Chimera additional prowess in the non-QM space.
HomeXpress' origination capabilities paired with the investment firm's "ability to manage, finance and securitize non-QM loans will create a powerful platform," Chimera's SEC filing said. The REIT estimates that the payback period on the investment will be a little over two years.
Chimera noted it has nearly $1 billion worth of non-qualified mortgages on its balance sheet as well as manages close to $20 billion of non-QM loans for third parties via
The REITs CEO Phillip Kardis II called the deal a "strategic acquisition, mark[ing] a significant expansion of Chimera's presence in the non-QM space, reinforcing its role as a leading real estate investment trust."
Piper Sandler & Co. acted as the exclusive financial advisor to HomeXpress and to Seer Capital Management, which has a significant ownership stake in the firm. Wells Fargo acted as the exclusive financial advisor to Chimera.
