Caliber Home Loans Inc. is preparing for an initial public offering that could estimate the company, one of the largest mortgage lenders in the United States, at more than $ 2 billion.
The company may unveil its plans for a public debut as early as this week, according to people familiar with the matter. Caliber had previously filed confidential IPO documents with the Securities and Exchange Commission, people said. IPO plans may still be delayed, or Caliber may choose to sell itself or merge with a blank parent company, one of the people said.
Mortgage companies have been in crisis lately thanks to record interest rates, which have boosted home sales and spurred a refinancing boom. Last week United Wholesale Mortgage agreed to go public via a merger with a special purpose acquisition company with a valuation of over $ 16 billion, a record for that type of transaction. Quicken Loans owner
Cos. It raised about $ 1.8 billion in an August IPO and is currently valued at around $ 45 billion.
According to the Mortgage Bankers Association, home loan volume is expected to increase 45% this year to $ 3.1 trillion. The rate on a 30-year mortgage fell below 3% for the first time in July, helping the housing market stay strong even as much of the US economy is limping.
Initial public offerings are also booming this year, despite a record contraction of the US economy in the second quarter. Companies raised nearly $ 95 billion in U.S.-listed IPOs through September 23, according to data provider Dealogic, accelerating 2020 to get through the tech boom years of 1999 and 2000. IPO investors are enjoying the biggest earnings in the companies’ commercial debuts since 2000.
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Caliber is owned by the private equity firm Lone Star Funds and is managed by Sanjiv Das, former executive of First Data and
The Texas-based company extended $ 36 billion in mortgages in the first six months of the year, making it the 10th largest mortgage lender in the United States, according to industry research group Inside Mortgage Finance. (Quicken was the largest during that time, while United Wholesale was # 3).
Caliber specializes in purchasing mortgage loans, which tend to require more personalized service than refinancing. Mortgage loans account for approximately two-thirds of Caliber’s business. The company typically sells its loans but continues to serve them, which has strengthened its smaller refinancing business.
—Christina Rexrode contributed to this article.
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Appeared in the print edition of 2 October 2020 as “Mortgage Lender Caliber Prepares IPO”.