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Industry

Mortgage Banking

Company Type

Independent Mortgage Bank

Size

Up To $50MM

Investment Type

Debt/ Acquisition Line of Credit/ Equity

For additional information, please contact:
 
Vikas Garg
 vgarg@castleplacement.com
 (917) 733-5414

Overview

AnnieMac Home Mortgage (“Company”) is seeking $30-50MM capital to pursue strategic growth opportunities


Founded in 2010, AnnieMac is a NJ based independent mortgage bank (IMB) providing residential mortgage loan origination, servicing, support, and value to clients, partners, and the community


Since 2011, AnnieMac has funded over $32BB in mortgage loans


Well-capitalized and with a talented management team, AnnieMac is pursuing growth both organically and inorganically to increase market share and achieve greater economies of scale


Inorganic growth strategy will include acquisition of strategic assets, high producers, and branch acquisitions.

Opportunity

Over the past two years, elevated interest rates and limited home inventory has caused mortgage origination volumes to drop by over 60% nationally


Mortgage companies which were under-capitalized or lacked the right management skills necessary to traverse these challenging conditions, are available at valuations not seen since the Great Financial Crisis of 2008/09


This has created a generational opportunity to rapidly grow market share through opportunistic acquisitions of deeply discounted companies and related assets


AnnieMac has identified several such large and midsized acquisitions targets with additional quality regional opportunities in pipeline. Some of these can be engaged immediately

Strategy

Target for acquisition, a select subset of mortgage banks and companies with strong loan origination capabilities


Target regional sales teams that are producing the right mix of product at the necessary net margins


Execute on a growing queue of already identified big and small targets, that are ready and willing to onboard


Goal is to become a Top 20 mortgage originator and servicer by end of 2025

Specific Risks

Interest Rate Risk: Mortgage industry is sensitive to prevailing interest rates and could be adversely impacted depending on other market variables


Default Risk: Higher interest rates may negatively impact economic conditions leading to declines in home values, higher mortgage payment delinquencies and/or defaults leading to losses for the firm


Prepayment Risk: Borrowers could repay their loans faster than anticipated, thus reducing future expected interest payments


Liquidity Risk: The firm funds long-term mortgages with short-term funds, making them vulnerable to liquidity risks


Economic Risk: Global economic and financial changes, geopolitical tensions, or natural calamities that could impact interest rates, real estate prices, or housing demand


Reputational Risk: Consumers could refrain from doing business with the firm as a result of public allegation concerning data breaches, privacy violations, fraudulent acts, or breaches of statutory/regulatory requirements


Retention Risk: Key sales staff may drive significant percentages of loan originations. Key sales staff attrition may result in losses for the firm


Legal/Regulatory Risk: New laws and/or regulations, or changes to existing laws and/or regulations, can increase operational costs, or change the competitive landscape in the residential mortgage market


Private securities are speculative, illiquid, and carry a high degree of risk – including the loss of the entire investment

Learn More About AnnieMac Home Mortgage

Thank you for your interest in AnnieMac Home Mortgage.

Please fill out your information and we will contact you shortly with more information on this opportunity.

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CONTACT US

Hi. We're not around right now. But you can send us an email and we'll get back to you, asap.

Thanks, Ken

Ken Margolis | Managing Partner Castle Placement, LLC
1460 Broadway Street, Rte 400
New York, New York 10036
(212) 418-1188 | C: (516) 712-7784
kmargolis@castleplacement.com

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