Mortgage
lender
and
servicer

OCMBC,
dba

LoanStream
Mortgage,
has
acquired

HomeStar
Financial
Corp.,
marking
a
significant
expansion
across
the
country. 

The
acquisition
formally
closed
on
Aug.
29,
OCMBC
announced
Thursday.
The
terms
of
the
deal
were
not
disclosed. 

“Their
extensive
experience
in

servicing
and
their
commitment
to
providing
outstanding
customer
service
align
perfectly
with
our
values
at
OCMBC,”
Serene
Vernon,
president
of
OCMBC,
said
in
a
statement.

Founded
in
2001,
California-headquartered
OCMBC
originates
in
the

wholesale,

retail
and

correspondent
channels.
It
is
licensed
in
48
states
and
the
District
of
Columbia.

The
company
posted
$3.56
billion
in
wholesale
volume
in
2023,
making
it
the

fifth-largest
wholesale
lender
in
the
country,
according
to

Scotsman
Guide. LoanStream
also
originated
$2.1
billion
in
volume
in
nonqualified
mortgage
(non-QM)
volume,
placing
No.
2
on
Scotsman
Guide’s
list
of
the
country’s
largest
non-QM
lenders.

HomeStar
—
founded
in
2002
as
a
local
mortgage
bank
in
Georgia
—
offers
conventional,
government
and
jumbo
purchase
loans,
as
well
as
refinances,
reverse
mortgages
and
a
doctor/medical
professional
mortgage
program. 

HousingWire
previously
reported
HomeStar’s

decision
to
suspend
its
retail
operations
by
the
end
of
2023
due
to
mortgage
volatility
and
extreme
margin
compression.

Mortgage
data
platform

Modex
showed
that
HomeStar
posted
an

origination
volume
of
$2.45
billion
in
2022,
but
it
fell
victim
to
higher
interest
rates,
leading
it
to
cease
its
retail
operations
last
year.

“As
we
head
into
a
period
of
historically
seasonal
lows,
for
protection,
with
no
end
in
sight
for
the
margin
compression
or
realistic
prospects
of
lower
rates,
I
have
decided
not
to
incur
further
financial
risk
over
the
coming
months,”
Wes
Hunt,
founder
and
CEO
of
HomeStar,
said
in
October
2023. 

The
mortgage
industry
continues
to

consolidate
as
higher
interest
rates
and
low
profit
margins
are
making
it
difficult
for
smaller
lenders
to
survive.

According
to
the

Stratmor
Group,
a
mortgage
advisory
firm,
more
than
100
mergers
and
acquisitions
have
taken
place
since
2021,
with
80%
of
the
deals
involving
large
independent
mortgage
banks
acquiring
smaller
IMBs.

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