The residential lender, which had been planning to go public in 2017, had to postpone the IPO due to a lack of investor interest. However, now that the mortgage market is beginning to show signs of life and investor optimism is on the rise, Amerihome may have another chance to make the leap.
Amerihome Mortgage Company was founded in 2007. It provides loan servicing, origination, and purchase services for its clients, primarily mortgage banks and financial institutions. The company's primary focus is on the residential mortgage market, with particular attention paid to the "middle market" segment of borrowers with moderate to high credit scores. Its loan origination platform, named AHP Advantage SM, allows customers to originate loans quickly and efficiently.
The company currently has a presence in 48 states, and as of June 2016, serviced over $25 billion in residential mortgage loans. In 2013, Amerihome also acquired a portfolio of subprime mortgage loans, which expanded its reach into higher risk consumer credit products. Over the past few years, Amerihome has grown rapidly through its loan origination and servicing platforms. It is now the third largest non-bank mortgage servicer in the United States.
In 2017, Amerihome had made plans to go public via an initial public offering. However, due to market conditions at the time, it had to delay the offering. Now, however, the company has renewed hope for its public debut. The overall mortgage market is beginning to show signs of recovery, and consumer demand for home loans is slowly increasing. In addition, investor optimism is on the rise, making the idea of an IPO much more attractive.
Amerihome is also in a strong position to benefit from the changing regulatory landscape in the mortgage industry. The Consumer Financial Protection Bureau recently proposed changes to existing regulations that will provide more flexibility for lenders, while providing additional protection for borrowers. This new set of rules should make it easier for Amerihome to continue to expand its business and serve its customers.
It remains to be seen if Amerihome will be able to make a successful initial public offering this time around. The company has clearly taken steps to strengthen its business and position itself for growth in the near future. Additionally, the favorable regulatory environment could help to make the prospect of investing in the company even more attractive to prospective investors. If the company can get past this hurdle, it may finally be able to make its long-awaited debut on the public markets.
Amerihome Mortgage Company had been planning to conduct an Initial Public Offering (IPO) in 2017 but had to postpone it due to a lack of investor interest. The company is now taking advantage of a more favorable market and investor optimism to make its public debut. Amerihome is a residential lender that provides loan servicing, origination, and purchase services for its clients, primarily mortgage banks and financial institutions. It is currently present in 48 states and serviced over $25 billion in residential mortgage loans as of June 2016. The company expanded its products to include subprime mortgages in 2013 as well.
The current state of the mortgage market indicates that Amerihome stands to benefit significantly. The overall market has begun to show signs of recovery, and consumer demand for home loans is slowly increasing. In addition, the changing regulatory landscape in the mortgage industry will provide more flexibility and additional protections for lenders and borrowers. Furthermore, investor optimism may prove to be the tipping point for Amerihome's IPO. If the company can successfully go public, it could firmly establish itself as one of the top players in the residential mortgage space.
This article was contributed on Nov 20, 2023