Absolute Home Mortgage targets growth through First Option strategic transaction

Absolute Home Mortgage Corp. on Wednesday announced a strategic transaction with First Option Mortgage that positions the combined independent mortgage bank to grow its originations volume. The move was not considered to be a merger or acquisition. New Jersey-based Absolute said in its announcement that Georgia-based First Option will migrate onto Absolute’s platform and continue to operate as a DBA unit after regulatory approval. The deal also brings First Option executives into Absolute’s ownership and governance structure, a move aimed at building out a dedicated growth engine in a consolidating market. As part of the transaction, First Option leaders Alvin Shah and Kurt Nikolai will join Absolute’s ownership group and board of directors, pending regulatory approval. Shah will become chief strategy officer, with responsibility for strategic expansion and additional acquisitions that are actively pursuing, according to the announcement. Combined with Absolute’s wholly owned subsidiary Mortgage Equity Partners, the platform is “positioned to originate approximately $4 billion annually” once approvals are complete, the company said. That level of volume would give the lender additi...