Chimera Expands Mortgage Reach With HomeXpress Acquisition

Chimera Investment Corporation CIM announced Thursday it will acquire HomeXpress Mortgage Corp., a non-QM and non-agency loan originator with a nationwide footprint spanning 46 states and Washington, D.C.

The deal, signed on June 11, includes a payment of $120 million in cash and 2,077,151 shares of Chimera stock. It will be executed through Chimera's taxable REIT subsidiary, Chimera Funding TRS.

The acquisition will expand Chimera's access to mortgage loan origination and strengthen its securitization and servicing operations, aligning with its long-term growth strategy. The transaction is expected to close in the fourth quarter of 2025.

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Chimera anticipates the deal will be earnings-accretive beginning in 2026. HomeXpress has operated profitably since its founding in 2016, generating $47 million in pre-tax income in 2024.

The company originated $2.5 billion in loans last year and projects $3.5 billion in volume for 2025, supported by its strong broker and correspondent partner network.

Following the acquisition, HomeXpress will continue as a wholly owned subsidiary, with CEO Kyle Walker and his senior leadership team staying on to lead the business.

Chimera also plans to leverage existing net operating losses to offset the acquisition premium. It will gain additional revenue streams through origination fees and gain-on-sale income, helping diversify its earnings base.

CIM held cash and cash equivalents of $253.349 million as of March 31, 2025.

Other companies involved in the residential and mortgage sector include PennyMac Financial Services Inc. PFSI and Rocket Companies Inc. RKT.

Investors may also watch mortgage-focused ETFs, such as the iShares MBS ETF MBB and the VanEck Mortgage REIT Income ETF MORT.

Price Action: CIM shares are trading lower by 0.22% to $13.89 premarket at last check Thursday.

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