Mid America Mortgage sells its retail lending business to Legend

Mid America Mortgage announced on Monday that it has agreed to sell its main retail division to Legend Lending.

Financial terms of the deal were not disclosed. Mid America will selectively retain a portion of retail for certain products and portfolio retention, and will remain active in automation, secondary marketing executions for specialty products, correspondent and wholesale. The agreement includes an earn-out and Legend will continue to use Mid America’s lending system.

“We wanted to refocus on third-party creations and technology solutions,” said Mid America President Jeff Bode. He plans to rebrand his company as Clickn’ Close in late May, pending regulatory approval.

The deal is expected to close in early July pending receipt of approvals from state licensing authorities, and increases the number of states in which Legend is active from 11 to approximately 30.

“We were at a point where we could support growth from an operations and liquidity perspective, and that was a good natural fit. It accelerated the growth we were already seeing,” said Joel Redmond, president of Legend Lending, in an interview. “The continuity of LOS was also a big part of it.”

Mid America will retain the right to license its LOS as it refocuses more exclusively on its technology, third-party channels, and aftermarket services for specialty products such as Section 184 and Disaster Relief Loans. installments.

Mid America plans to continue to seek innovations in the execution of securitization that will be available as an alternative when the type of Market volatility which recently disrupted the specified pool loan market with down payment assistance emerges.

Volatility has recently made DPA loans unprofitable for lenders selling them in the specific pool market, so having an alternative execution ready could help ensure these loans are granted when this type of disruption occurs, said Troy Baars. , President of Vice Capital Markets.

“The DPA portion of the loans is funded by the premium on the security or the service, so they have to get a high premium bond to do that business,” Baars said in an interview.

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