Northpointe to sell mortgage channels to CMG Financial by Nov. 30

Northpointe Bancshares signed a definitive agreement on October 26 to sell its distributed retail and consumer direct mortgage origination channels to CMG Financial, HousingWire reported.

The transaction is expected to close by November 30, with CMG Financial agreeing to pay Northpointe 0.15% on first-lien mortgage originations closed through these channels through December 31, 2028.

CMG Financial will assume associated leases where possible, and the agreement includes customary closing conditions, representations, warranties, covenants, and termination rights.

Northpointe announced plans to exit these mortgage origination channels last week, citing a shift in strategic priorities and the current economic and operating environment. The bank aims to focus on expanding its national mortgage purchase program, specialty finance capabilities, and relationship-based deposits.

The bank anticipates restructuring charges between $6 million and $7 million, mostly impacting the fourth quarter. Loans already in process will continue to close.

CMG Financial has a history of acquisitions in the mortgage sector, including the retail division of Homebridge Financial Services and retail assets of Norcom Mortgage, as well as a recent deal to acquire Greenwoods Financial Group.