Moody’s affirms Home Point

Moody's Investors Service said it affirmed Home Point Capital Inc.'s B3 corporate family rating and Caa1 long-term senior unsecured debt rating.

The outlook remains stable.

The agency said the affirmation follows Home Point's announcement that it has entered into a definitive agreement to sell certain assets of the company's wholesale originations channel to The Loan Store, Inc. Home Point will hold an equity interest in The Loan Store.

“Home Point's B3 CFR balances its limited franchise position and uncertain future against its current capitalization levels,” the agency said in a news release.

“Following the sale of its remaining origination platform, Home Point will have no further mortgage origination capabilities with its remaining business managing its mortgage servicing rights (MSR) portfolio, which stood at $1.4 billion as of Dec. 31, 2022, and are subserviced by ServiceMac, LLC.

“As such, Home Point's overhead costs will decline materially.”

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