Illustration: Maura Losch/Axios
Lending fintech SoFi has acquired Wyndham Capital Mortgage in an all-cash transaction.
Why it matters: Originally focused on student loans, SoFi's more recent growth has depended on diversified revenue streams, especially during the ongoing student loan moratorium.
Context: SoFi acquired Galileo, a payments and API platform, for $1.2 billion in 2020. It also acquired banking software maker, Technisys, for about $1.1 billion last year.
Details: Of its three main lending products, SoFi currently derives the least volume from home loan origination, according to the company's most recent earnings report.
- The acquisition is meant to boost unit economics and expand the suite of mortgage products available to consumers, according to SoFi.
The big picture: SoFi is buying Wyndham at a relatively cheap time for mortgage players. Shares of LoanDepot are down 64% over the last 12 months. Rocket Companies, parent of Rocket Mortgage, is down about 22%.
