AFR In Discussions To Sell Mortgage Business To Proprietary Capital

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AFR In Discussions To Sell Mortgage Business To Proprietary Capital

Aug 17, 2023 | News | 0 comments

American Financial Resources (AFR) has formally validated its intention to sell the complete ownership of the company. This decision comes as a result of a conclusive agreement with an investment group led by Proprietary Capital. While the finer financial particulars of the transaction have been kept confidential, this move marks a significant development in AFR’s strategic direction.

Craig Cohen, who holds the position of managing member at Proprietary Capital, has elaborated on how the impending acquisition will contribute to the expansion of the firm’s mortgage platform. This strategic move holds particular significance for Proprietary Capital, a Denver-based fund management entity that specializes in facilitating investor participation in the RMBS (Residential Mortgage-Backed Securities) market. Their operational focus is centered on curating investment opportunities related to mortgages and the broader housing sector. This acquisition underscores their commitment to strengthening their presence in these domains.

In Cohen’s perspective, the amalgamation of AFR’s resilient operational framework, steadfast customer following, experienced long-serving staff, and extensive array of products and services is poised to serve as a powerful impetus for their growth over the years to come. This strategic move is anticipated to not only enhance their market presence but also solidify their position as a prominent player in the industry.

In an official statement, AFR’s CEO, Rich Dubnoff, remarked, This event signifies a significant milestone for AFR. With the support and financial backing of Proprietary Capital, AFR is commencing a new phase of rapid growth that will provide direct benefits to its borrowers, as well as its wholesale and correspondent clients, while also benefiting the dedicated workforce.

Established in 1997, AFR operates as a mortgage banking entity encompassing direct, wholesale, and correspondent lending sections, providing an array of agency, non-agency, and government loan offerings. Notably, AFR excels in construction and manufactured home mortgage initiatives, garnering recognition as the leading wholesale partner for manufactured homes from the Department of Agriculture in June.