SoFi Announces Acquisition of Wyndham Capital Mortgage
The FinTech-turned-bank SoFi is making another major purchase. Today, the company announced that it was acquiring Wyndham Capital Mortgage. While SoFi notes that it was an all-cash transaction, the terms of the deal were not disclosed.
Founded in 2021, the Carolina-based Wyndham Capital Mortgage has helped more than 100,000 borrowers. Furthermore, the company has a 98% satisfaction rating and maintains an A+ from the Better Business Bureau. According to a press release, the acquisition includes the integration of both technology and talent from Wyndham Capital. In turn, SoFi says it will be able to broaden its array of mortgage products. Additionally, the FinTech says the purchase will allow them to lower its reliance on third-party partners.
SoFi’s purchase of Wyndham Captial Mortage is the company’s latest in a line of acquisitions over the past few years. Last year, the company completed its purchase of Golden Pacific Bancorp (for approximately $22.3 million), which resulted in the creation of SoFi Bank. One month later, SoFi also closed a transaction to buy Technisys. At the time, the FinTech noted that it would combine Technisys’s technology stack with that of Galileo — a company that SoFi acquired in 2020 for $1.2 billion.
In a statement announcing the acquisition, SoFi Technologies CEO Anthony Noto started by acknowledging the current financial climate, saying, “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. Several macro- and socioeconomic factors – high inflation and rising mortgage rates, the new world of work, and others – have ushered in a new era across the U.S. real estate market. These changing conditions mean it’s more important than ever that borrowers have a trusted partner they can look to as they go through the process of obtaining a mortgage for a home.”
Noto continued, “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.”
Although SoFi’s acquisition of Wyndham Capital might not be as impactful as some of its past purchases, it does show the FinTech continued efforts to become a one-stop-shop for financial services while also vertically integrating. Because of that, it seems unlikely that this will be the last purchase we see from the company. As the firm continues to grow, we can always expect more big news from SoFi.