Article Summary
Supreme Lending, a Texas-based mortgage lender with $3.8 billion in originations over the past year, is acquiring Michigan Mutual, a mid-market boutique wholesale lender. The deal, an asset sale, aims to bolster Supreme’s retail presence, particularly in Michigan, where it currently lacks a footprint. Michigan Mutual’s infrastructure, policies, and procedures will be integrated into Supreme Lending. This acquisition also opens the door for Supreme to explore the wholesale lending market, a sector where Michigan Mutual has historically performed well. The transaction reflects Supreme’s strategic growth ambitions in the competitive mortgage industry.
What This Means for You
- Expanded options for borrowers: The combined resources of Supreme Lending and Michigan Mutual could lead to more competitive mortgage products and rates for consumers.
- Increased market presence: Supreme Lending’s acquisition strengthens its foothold in Michigan, offering more localized mortgage services in the region.
- Potential for industry-wide competition: The deal signals Supreme’s intent to compete with larger players like United Wholesale Mortgage and Rocket Mortgage, potentially driving innovation.
- Watch for integration challenges: While the deal appears favorable, borrowers and industry professionals should monitor how smoothly the two companies merge operations and customer service standards.
Supreme Lending to acquire Michigan Mutual: sources
Founded in 1999, Supreme Lending originated $3.8 billion over the past 12 months, with most of its volume concentrated in Texas, Florida and California, according to mortgage tech platform Modex. Approximately 70% of that production was for purchase loans.
As of Tuesday, the Nationwide Multistate Licensing System (NMLS) listed the company as having 702 sponsored mortgage loan officers and 193 active branches.
Supreme’s chief operating officer Kevin Pezzani later confirmed the transaction—an asset sale—to HousingWire. Terms of the deal were not disclosed.
Based on historical production, MiMutual could contribute roughly $860 million in annual volume to Supreme’s business, according to InGenius.
“We’re really interested in their retail business, that’s what attracted us to the organization from the get go,” Pezzani said in an interview. “The people and their reputation and the market that they are in—they have a really good Michigan footprint, which is something that we don’t really have.”
Pezzani said that MiMutual runs a mix of distributed retail and P&L branches. He expects executives at MiMutual to join Supreme but declined to comment on their new roles or how many LOs he expected to join.
Pezzani declined to answer additional questions related to the transaction, saying details were still being finalized.
According to sources, MiMutual’s retail platform isn’t nearly as robust as its wholesale business, where it competes against local titans United Wholesale Mortgage and Rocket Mortgage. NMLS data shows Michigan Mutual currently sponsors 69 loan officers and operates 18 active branches.
Though Pezzani said Supreme is focused on the retail component, they’d potentially “dip their toes” in the wholesale lending waters with the acquisition of MiMutual.
Rick Roque, vice president of growth at NFM Lending and a consultant at Menlo, who worked at MiMutual from 2016-2018 to help expand its retail platform, said while the company has always struggled with growing this part of the business, it has remained to be a “strong mid-market boutique wholesale lender.”
“The acquisition does not surprise me at all, as it helps build out Supreme’s retail platform, and it puts them on the map in a serious way for wholesale,” Roque said. “The two organizations combined will continue on a very favorable trajectory.”
The deal will result in Supreme Lending taking over MiMutual’s infrastructure, policies, procedures, and other elements.
Supreme Lending employees traveled to Port Huron, Michigan—where MiMutual is headquartered—on Wednesday for the official announcement of the deal.
People Also Ask About
- What is Supreme Lending’s market share? Supreme Lending originated $3.8 billion in the past 12 months, primarily in Texas, Florida, and California.
- What does Michigan Mutual specialize in? Michigan Mutual is known for its strong mid-market boutique wholesale lending business.
- Will Michigan Mutual employees join Supreme Lending? Yes, executives and potentially loan officers are expected to transition, though specific roles remain undisclosed.
- How will this acquisition impact borrowers? Borrowers may benefit from expanded mortgage product offerings and more competitive rates.
- What challenges could arise from this acquisition? Integration of policies, procedures, and customer service standards may pose initial challenges.
Expert Opinion
This acquisition underscores the ongoing consolidation trend in the mortgage industry, as lenders seek to expand geographic reach and diversify their service offerings. By combining strengths—Supreme’s retail expertise and Michigan Mutual’s wholesale capabilities—the deal positions both entities for sustainable growth in a competitive market. However, success will hinge on seamless integration and maintaining customer trust during the transition.
Key Terms
- Supreme Lending acquisition Michigan Mutual
- mortgage industry consolidation trends
- retail vs. wholesale lending strategies
- impact of mortgage acquisitions on borrowers
- competitive mortgage market Michigan
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