Coppell’s Caliber home loans go public, capitalizing on mortgage and refinancing boom
Coppell-based home mortgage company Caliber Home Loans is seeking to raise up to $ 200 million in an initial share offering.
The fast-growing mortgage lender filed with the U.S. Securities and Exchange Commission for its first sale of government securities on Friday. Historically low interest rates are fueling a boom in home buying and refinancing, leading private mortgage companies to capitalize on Wall Street.
Home loan creations are expected to reach $ 3.9 trillion this year, up from around $ 2.2 trillion in 2019. Over $ 2.4 trillion in home loan volume this year is from homeowners refinancing their property at lower mortgage rates.
Caliber Home Loans is owned by a subsidiary of Dallas private equity investor Lone Star Funds, which will hold more than 50% of the company’s shares after the public offering. The company lists its current total equity at over $ 1 billion.
Caliber – which is expanding its offices at the Cypress Waters development near LBJ Freeway and Belt Line Road – describes itself as the second largest independent mortgage originator in the country. It has more than 550,000 clients for whom it grants and provides home loan services. Its mortgage loan creations totaled $ 61 billion last year.
In the first half of this year, Caliber recorded $ 275 million in profit for a 45% return on equity, according to its filing with the SEC. The company said its six-month 2020 revenue of $ 1.13 billion was just below its annual revenue of $ 1.2 billion last year.
Caliber, created in 2013 when Lone Star Funds combined separate mortgage operations, now has nearly 6,000 employees. The company filed plans this summer to occupy office space in the successful Cypress Waters development at 3401 Olympus Boulevard.
The company occupies about 80,000 square feet on two floors of the new building, according to documents filed with the state. Its current offices are nearby on Belt Line Road.
In a letter to “new shareholders,” CEO Sanjiv Das said the company has one of the most experienced teams in the field of mortgages.
“For most families, buying a home is the biggest, most important, and most complex financial decision they’ll make,” wrote Das, a former Citigroup Inc. executive. a first home don’t just want to push buttons on an app on their phone. They want personalized advice from trusted loan consultants in their community. “
Credit Suisse, Goldman Sachs & Co. LLC and Barclays are acting as underwriters for the proposed offer.
If Caliber goes ahead with its stock offering, this year it would become the fourth mortgage company to plan an IPO at a valuation of over $ 2 billion, according to Housing wire. Rocket Mortgage, America’s largest lender, debuted this summer and is now trading at a valuation of $ 45 billion. United Wholesale Mortgage, the country’s second-largest originator, plans to go public in the fourth quarter with a valuation of $ 16.1 billion. LoanDepot, headquartered in Plano, is expected to go public at a value as high as $ 15 billion.
Caliber is also reportedly joining other North Texas companies making their Wall Street debuts in recent weeks. Dallas-based Thryv Holdings had its IPO Thursday and the biotechnology start-up Taysha Gene Therapies debuted last week.