Texas-based home mortgage originator Caliber Home Loans Inc is gearing up for an initial public offering, according to the Wall Street Journal. Currently, the private equity firm Lone Star Funds owns Caliber Home Loans.
What Happened: Caliber’s fundraising venture could see it valued at around $2 billion, the Journal reported. The specifics of the IPO launch could be released this week if it decides to follow through with the plan, but the company could still go for a sale or a merger with a special purpose acquisition company.
The home mortgage company confidentially filed a draft S-1 statement with U.S. Securities and Exchange Commission earlier this year, people familiar with the matter told the Journal.
Why Does It Matter: The low-interest rates are driving up refinancing and house sales. The Mortage Bankers Association expects home loan volumes to cross $3 trillion growth this year, according to the Journal. A sizeable chunk of Caliber’s business relies on owner financing services or purchase mortgages.
Caliber industry peers like United Wholesale Mortgage and Rocket Companies Inc (NYSE: RKT) have been through a major reorganization. United Wholesale announced merger plans with the Gores Holding IV Inc (NASDAQ: GHIV) last week at a $16 billion valuation. In August, Rocket raised $1.8 billion proceeds at a $45 billion valuation in its IPO.
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