A&d Mortgage Acquires Mr. Cooper’s Wholesale, Correspondent Businesses

Florida-based non-QM lender A&D Mortgage announced Friday that it has acquired the wholesale and nondelegated correspondent lending businesses of Mr. Cooper Group. The terms of the deal have not been disclosed but it is expected to close by the end of March 2025.

A&D reported that the two entities being acquired funded more than $10 billion in originations in 2024. It also said that the impacted employees at Mr. Cooper will be offered an opportunity to join A&D when the transaction is finalized.

“We took a very careful and measured approach to finding a potential partner to grow our QM business,” Max Slyusarchuk, CEO of A&D Mortgage, said in a statement. “A&D’s goal is to be an industry leader, and this transaction is a big step forward.”

Mr. Cooper had previously acquired the assets in a deal with Flagstar Bank, which was announced in July and closed in November. Mr. Cooper did not immediately respond to HousingWire’s request for comment.

The new channels expand A&D’s broker network to more than 8,500 partners. A&D offers brokers more than 20 lending programs across the agency, government, jumbo and non-QM spectrum. It also has a proprietary origination system designed to speed up the funding process.

A&D Mortgage was the 80th-largest lender in the country through the first nine months of 2024, according to estimates from Inside Mortgage Finance (IMF). It originated $2.37 billion in loans during this period, up 37.5% year over year.

Texas-based Mr. Cooper, meanwhile, was the 22nd-largest lender during the same span. Its origination business grew by 35.4% annually for a total of $13.5 billion. Mr. Cooper is also the nation’s fourth-largest servicer, per IMF, with $678 billion in owned servicing rights as of third-quarter 2024.

“It took almost three years of screening candidates and finally we found what we were looking for,” said Lana Izgarsheva, chief operating officer of A&D Mortgage. “The deep expertise in the mortgage business, the high-tech culture, and most importantly, the core values of the team — these are things we are similar in.“