Coppell-based Mr. Cooper Group is boosting its mortgage business by acquiring a Farmers Branch competitor with 850 employees.
Mr. Cooper announced Thursday that its acquisition of Pacific Union Financial LLC should close in early 2019. It expects the deal to boost its servicing business by $25 billion and its loan originations by $10 billion.
“This acquisition allows us to expand our servicing portfolio by welcoming more than 120,000 customers and increases our mortgage lending volume and capabilities,” said Mr. Cooper chairman and CEO Jay Bray in a statement.
Mr. Cooper, known previously as Nationstar Mortgage, is the nation’s largest non-bank mortgage servicer and a leading mortgage lender. It has about 7,000 employees, including 4,000 in Dallas-Fort Worth.
The consolidation comes as the red-hot housing market begins to show signs of cooling. The volume of mortgage applications last week fell to the lowest level since December 2014, according to a new report from the Mortgage Bankers Association.
A short supply of homes and rising interest rates are other factors. The 30-year fixed-rate mortgage — the most common among buyers — hit 5.15 percent last week, the highest level in more than eight years.
Mr. Cooper said Pacific Union brings more than 700 active clients to the deal, with only a 20 percent overlap with its existing customers.
“Joining Mr. Cooper offers strength, stability and a tremendous opportunity for continued growth in our core businesses and for our team,” said Pacific Union founder and CEO Evan Stone.
This summer, Pacific Union closed a call center in El Paso only months after being promised $1.4 million in incentives to create 699 jobs. It never received the tax money because it didn’t meet the job creation requirements.
Mr. Cooper Group grew out of a merger earlier this year between Nationstar Mortgage and a Seattle-based holding company that formerly owned Washington Mutual Bank. That bank failed during the 2008 financial crisis and holding company WMIH Corp. emerged from the bankruptcy.