The acquisition signals a trend in the mortgage space where more and more nonbank companies are consolidating. Terms of loanDepot/Mortgage Master transaction were undisclosed.
"Our business models, our cultures, and our product offerings are highly complementary," said Anthony Hsieh, chairman and CEO of loanDepot. "The combined company will position us to accelerate our expansion in the northeast while continuing to build our national consumer lending businesses offering both mortgage and nonmortgage lending products."
Both companies' combined retail loan funding volume in October was $1.75 billion with nearly $70 million in top-line revenue. After closing, loanDepot will operate 130 retail lending branches across the country, four web production centers and employ 3,700 full-time associates including more than 1,200 licensed loan officers serving borrowers in all 50 states.
Currently, loanDepot’s reach includes 84 national retail locations and about 2,8000 full-time employees. The transaction is slated to close in early 2015 subject to regulatory approvals.
The combined company will maintain and operate the loanDepot.com, imortgage and Mortgage Master consumer brands, offering borrowers across the country vital access to the financing, information and expertise they need to pursue their lending needs.
As part of the agreement, Mortgage Master's founder and CEO Leif Thomsen and president Paul Anastos will continue to lead the Mortgage Master brand.
Earlier this year loanDepot announced it will begin offering personal loans and so is on track to deliver the company's first personal loan products in early 2015.
In its latest acquisition, loanDepot has signed an agreement to acquire Mortgage Master, increasing its retail presence by 35%. The move comes only months after the lender opened its wholesale division, LDWholesale, and after reports that the company was interested in all the loan officers at RoundPoint Mortgage.