Chimera Investment Corporation (NYSE: CIM) has recently announced its definitive agreement to acquire Homexpress Mortgage Corp. from certain affiliates of Seer Capital Management's credit fund business and certain management sellers. The acquisition is expected to broaden Chimera's residential credit platform and be accretive to earnings in 2026.
Homexpress is a leading originator of consumer non-QM, investor business purpose, and other non-agency mortgage loan products, with a nationwide presence across 46 states and D.C. The company has approximately 300 employees and actively lends in 46 states and D.C.
In 2024, Homexpress had $2.5 billion in funded origination volume, and it is estimated to have $3.5 billion in funded origination volume for the full year 2025, with $1.2 billion funded origination volume through May 2025. Additionally, Homexpress had a pre-tax net income of $47 million in 2024 and $115 million of GAAP total equity as of March 31, 2025.
Under the terms of the agreement, Chimera will acquire Homexpress for a combination of cash and 2,077,151 shares of Chimera common stock. The purchase price will be equal to the adjusted book value of Homexpress as of the end of the month prior to the closing, plus a premium consisting of $120 million in cash plus 2,077,151 shares of Chimera common stock. The acquisition is expected to close during the fourth quarter of 2025, subject to customary closing conditions.
Chimera expects the acquisition to be accretive to its earnings in 2026 and highlights the strategic rationale and benefits to its shareholders, including the synergistic nature of the combination, the opportunity for direct loan acquisition and securitization, and the diversification of income streams to include origination fees and gain on sale income.
As a result of these announcements, the company's shares have moved -0.14% on the market, and are now trading at a price of $13.89. For the full picture, make sure to review CHIMERA INVESTMENT CORP's 8-K report.
