Key facts
- CMG Financial will pay Northpointe 0.15% on first-lien mortgage originations closed through the channels until December 31, 2028.
- CMG Financial will assume associated leases where possible.
- Northpointe expects restructuring charges of $6 million to $7 million, with most impacting the fourth quarter.
Northpointe Bancshares Inc. on Wednesday signed a definitive agreement to sell its distributed retail and consumer direct mortgage origination channels to CMG Financial Inc., formalizing a deal first announced last week. The agreement was signed October 26, following a nonbinding letter of intent disclosed in Northpointe’s October 20 earnings release. The transaction is expected to close by November 30.
Under the agreement, CMG will pay Northpointe 15 basis points, or 0.15%, on first-lien mortgage originations closed through the channels through December 31, 2028. CMG will also assume associated leases where possible, according to a company release.
Northpointe announced its plans to exit the two mortgage origination channels last week, citing a shift in strategic priorities and the current economic and operating environment. Chairman and CEO Chuck Williams said the move would allow the bank to focus on expanding its national mortgage purchase program, specialty finance capabilities and relationship-based deposits. The bank expects restructuring charges of $6 million to $7 million, with most of the impact occurring in the fourth quarter. Loans already in process will continue to close.