San Francisco-based SoFi Technologies announced the acquisition of Wyndham Capital Mortgage on Monday. The neobank purchased the Charlotte, North Carolina-based fintech mortgage lender in an all-cash transaction. Further specifics were not disclosed.
The addition of Wyndham Capital will expand the neobank's suite of mortgage products and improve its business units' economies of scale, SoFi said in a press release.
The fintech company will take Wyndham's origination platform and employees under its wing and integrate both into the company's lending business. This "full stack" approach will minimize SoFi's reliance on third-party partners and processes, the tech company said.
"At SoFi, we're on a mission to help people get their money right and purchasing a home is often one of, if not the, biggest financial decision individuals make in their lives," said Anthony Noto, CEO of SoFi Technologies, Inc, in a written statement. "Today's acquisition of Wyndham Capital will not only allow us to scale and keep pace with accelerated growth, but also allow us to foster that growth in a way that brings value to our members through sales and operational efficiencies and helps members get their money right when it comes to one of life's most significant financial milestones."
The transaction is not expected to impact SoFi's 2023 financial outlook, though the neobank forecasts that this acquisition will turn a profit within six months.
SoFi — which offers a plethora of financial products and services including student and auto financing products, mortgages, personal loans and credit cards — has shown financial resiliency. It moved closer to profitability and beat
Despite the economic downturn, the company's net revenue was $443 million in the fourth quarter,
The only sour spot in SoFi's balance sheet was its technology unit, which sought to reduce expenses that outweighed its profitability through headcount reductions. Those reductions represented less than 5% of SoFi's total employee base, according to a company spokesperson.
Though most of Wyndham's employees are likely to transition to SoFi, Donny Kirby, vice president of national direct to consumer sales at Wyndham Capital, announced earlier that he would be departing and starting his own brokerage dubbed Cornerstone Home Loans.
" I made the decision after 12 years that it was time to turn the page and start another chapter on this journey," he wrote on his LinkedIn page in late-March. "Today was my last at WCM. I wish them nothing but the best and I am excited about what the future holds."
