Transaction Broadens Chimera’s Residential Credit Platform and Expected to Be Accretive to Earnings in 2026
Chimera Investment Corporation announced that on June 11, 2025, it entered into a definitive agreement to acquire HomeXpress Mortgage Corp. (“HomeXpress”) from certain affiliates of Seer Capital Management’s credit fund business (“Seer”) and certain management sellers (together with Seer, the “Sellers”). HomeXpress is a leading 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.
“We are thrilled to welcome HomeXpress to the Chimera team,” said Phillip J. Kardis II, President and Chief Executive Officer of Chimera. “We believe that the transaction is the natural next step in the transformation of Chimera. Bringing together Chimera’s strong history of loan securitization, structured finance, and third-party loan management and advisory services with HomeXpress’ loan origination platform is expected to create a powerful combination and enhance our enterprise value. HomeXpress has an excellent management team with experienced origination professionals that have a long history of serving broker and correspondent partners across the U.S. We expect this acquisition to be accretive to Chimera’s earnings in 2026.”
Strategic Rationale and Benefits to Chimera Shareholders
- Highly Synergistic with Chimera’s Platform
- The combination of HomeXpress’ non-QM origination platform and our loan management and advisory services is expected to create a tremendous cross-selling opportunity.
- Provides opportunity for Chimera to acquire and securitize loans on a direct basis.
- Supports Chimera’s efforts to build an MSR portfolio.
- Presents an opportunity to create enterprise value at the platform level.
- Attractive and Diverse Returns
- Existing net operating losses at Chimera are expected to cover a substantial amount of the acquisition premium.
- Continues the diversification of Chimera’s income streams to include origination fees and gain on sale income.
HomeXpress Highlights
- A leading national non-QM originator
- Approximately 300 employees and lending in 46 states and D.C.
- $2.5 billion UPB of funded origination volume in 2024
- $3.5 billion UPB of estimated origination volume for the full year 2025, with $1.2 billion UPB of year-to-date funded origination volume through May 2025
- Made first loan in 2016 and has been profitable every year since
- 2024 pre-tax net income of $47 million
- $115 million of GAAP Total Equity as of March 31, 2025
- Partner of choice for brokers and correspondent lenders across U.S.
- Experienced management team
Key Transaction Details
Under the terms of the agreement, 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 $120 million in cash plus 2,077,151 shares of Chimera common stock. HomeXpress will operate as a subsidiary of Chimera and Kyle Walker, the current President and CEO, along with key members of the senior management team will continue to manage HomeXpress. Chimera expects to close the transaction during the fourth quarter of 2025, subject to the satisfaction of customary closing conditions.
Advisors
Wells Fargo acted as the exclusive financial advisor to Chimera. Hunton Andrews Kurth LLP served as legal counsel and Alston & Bird LLP served as regulatory counsel to Chimera. Piper Sandler & Co. acted as the exclusive financial advisor to HomeXpress and Seer. Mayer Brown LLP served as legal counsel to Seer. Sheppard, Mullin, Richter & Hampton LLP served as legal counsel to HomeXpress management.
Investor Presentation and FAQs
A supplemental investor presentation, which includes FAQs on the transaction, will be available on Chimera’s website www.chimerareit.com.
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