Chimera Investment jumps on HomeXpress acquisition to expand mortgage platform

Published 12/06/2025, 21:00
© Reuters.

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.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.