Chimera to acquire HomeXpress Mortgage

Chimera (CIM) announced that on June 11, it entered into a definitive agreement to acquire HomeXpress Mortgage from certain affiliates of Seer Capital Management’s credit fund business and certain management sellers. HomeXpress is an originator of consumer non-QM, investor business purpose, and other non-Agency mortgage loan products, as well as an originator of Agency mortgage loans with a nationwide presence across 46 states and D.C. HomeXpress has approximately 300 employees and lending in 46 states and D.C., $2.5B UPB of funded origination volume in 2024, $3.5B UPB of estimated origination volume for the full year 2025, with $1.2B UPB of year-to-date funded origination volume through May 2025. The company made first loan in 2016 and has been profitable every year since. It reported 2024 pre-tax net income of $47M and has $115M of GAAP total equity as of March 31. Chimera will cause its taxable REIT subsidiary, Chimera Funding TRS, to acquire HomeXpress from the Sellers 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 $120M in cash plus 2,077,151 shares of Chimera common stock. HomeXpress will operate as a subsidiary of Chimera and Kyle Walker, current CEO, along with key members of the senior management team will continue to manage HomeXpress. Chimera expects to close the transaction during Q4.