Business Mix And ScaleAll-stock merger creates greater scale and a more balanced origination-versus-servicing business mix, enabling recapture opportunities and operational efficiencies that could boost long-term value.
Dividend Coverage And Cash FlowAcquisition adds servicing cash flows from a portfolio with a lower average coupon than current mortgage yields, which can strengthen dividend coverage and improve free cash generation.
Leverage And Balance SheetTransaction lowers leverage by cutting the non-funding debt to tangible common equity ratio below the 2x threshold, which should ease balance-sheet pressure and support credit metrics.