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Investing.com -- Chimera Investment Corporation (NYSE:CIM) rose 3.1% Thursday after it announced plans to acquire HomeXpress Mortgage Corp., a major U.S. originator of non-qualified mortgage (non-QM) loans. The deal, signed June 11, brings together Chimera’s securitization and structured finance expertise with HomeXpress’ direct origination footprint, creating a vertically integrated mortgage platform.
"We are thrilled to welcome HomeXpress to the Chimera team," said Phillip J. Kardis II, President and Chief Executive Officer of Chimera. “Bringing together Chimera’s strong history of loan securitization… with HomeXpress’ loan origination platform is expected to create a powerful combination and enhance our enterprise value.”
HomeXpress brings a portfolio of $2.5 billion in loans funded in 2024 and $1.2 billion year-to-date through May 2025, with full-year volumes projected to hit $3.5 billion. Lending across 46 states and D.C., the company has remained profitable since its first loan in 2016 and posted $47 million in pre-tax income last year.
The acquisition is expected to be accretive to Chimera’s earnings in 2026 and aligns with its strategic goal of diversifying income streams beyond mortgage-backed securities. By adding origination fees and gain-on-sale income, Chimera aims to drive more stable and recurring revenues within a volatile mortgage lending market.
Integrating HomeXpress enables Chimera to acquire and securitize loans directly while helping build out its mortgage servicing rights (MSR) portfolio. Executives highlighted potential synergies in cross-selling and loan pipeline optimization, bolstered by the expertise of HomeXpress’ 300-strong team.
Importantly, Chimera will also use its existing net operating losses to offset a substantial portion of the acquisition premium, enhancing the financial efficiency of the transaction. The company emphasized the opportunity to create value at the platform level while reducing dependence on third-party originators.
The acquisition represents the latest step in Chimera’s transformation into a full-service mortgage finance company. Kardis added, “We expect this acquisition to be accretive to Chimera’s earnings in 2026,” signaling confidence in the long-term strategic impact of the deal.
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