SHAREHOLDER ALERT: Pomerantz Law Firm Reminds Shareholders with Losses on their investment in Home Point Capital Inc., of Class Action Lawsuit and Upcoming Deadline

New York, New York – (Newsfile Corp. – June 26, 2021) – Pomerantz LLP announces that a class action lawsuit has been filed against Home Point Capital Inc. (“Home Point” or the “Company”) (NASDAQ: HMPT) and some of his officers. The class action lawsuit, filed in the United States District Court for the Eastern District of Michigan and filed under 21-cv-11457, is on behalf of all persons and entities other than Defendants who have Home Point common stock under and / or redeemable the Company’s initial public offering on January 29, 2021 (the “IPO” or “Offering”) in an attempt to recover indemnifiable damage caused by Defendants’ violations of federal securities laws and to seek legal remedies under Sections 11 and 15 of the Securities Act of 1933 (the “Securities Act”) (the “Class”). The claims in this lawsuit arise out of Home Point’s materially misleading offering documents (defined below) issued in connection with the IPO.

If you are a shareholder who has purchased and / or is attributable to Home Point common stock pursuant to the company’s initial public offering on January 29, 2021, you have until August 20, 2021 to see the court to appoint you as the lead plaintiff for the Appoint class. A copy of the complaint is available at www.pomerantzlaw.com. To discuss this promotion, contact Robert S. Willoughby at [email protected] or 888.476.6529 (or 888.4-POMLAW) toll free ext. 7980. Inquiries by email are encouraged to include their postal address, telephone number, and the number of shares purchased.

[Click here for information about joining the class action]

Home Point, together with its subsidiaries, acts as an originator and service provider for residential mortgages. The company operates in two segments, origination and servicing. The Origination segment procures credit through direct, wholesale and correspondence channels. The Servicing segment offers the collection of loan payments; Transfer of principal and interest payments to investors; Managing trust funds for paying mortgage-related expenses such as taxes and insurance; and conducting loss mitigation activities on behalf of investors and managing mortgage loans.

The story goes on

From 2018 to 2020, Home Point aggressively expanded its broker partner network, increasing the network from 1,623 as of December 31, 2018 to nearly 5,000 as of September 30, 2020, an annualized growth rate of 88%.

In the fourth quarter of 2020, mortgage lenders across the industry began predicting falling profit margins, the difference between the retail and wholesale costs of a mortgage, for the next three months. According to the Fannie Mae Q4 2020 Mortgage Lender Sentiment Survey, only 19% of lenders anticipated an increase in profit margins compared to 48% in the previous quarter, 33% believed profits would remain stable, while 48% expected profits to decline.

On January 8, 2021, in connection with the IPO, Home Point filed a registration statement on Form S-1 with the SEC, revised effective January 28, 2021 (the “Registration Statement”).

On January 29, 2021, Home Point went public and issued 7.25 million common shares of the company at the offering price of $ 13.00 per share for proceeds of $ 88,123,750 to selling shareholders, before charges and after applicable subscription discounts and commissions .

On February 1, 2021, Home Point filed a prospectus with the SEC on Form 424B4 in connection with the IPO, which included and formed part of the registration statement (the “Prospectus” and, along with the registration statement, the “Offer Documents”). ).

The complaint alleges that the offer documents were created negligently and, as a result, contained false information about material facts or other facts that were necessary in order not to mislead the statements made, omitted and not in accordance with the rules and regulations for their creation were created. In particular, the offering documents made false and / or misleading statements and / or did not disclose that: (i) Home Point’s aggressive expansion of its brokerage partners would dramatically increase the company’s costs; (ii) the mortgage industry expected lower profit margins across the industry due to rising interest rates in 2021 and Home Point would face the same competitive pressures; (iii) accordingly, the Company had overestimated its business and financial prospects; and (iv) as a result, the Offer Documents were materially inaccurate and / or misleading and did not contain any required information.

On May 6, 2021, Home Point published a press release announcing the company’s financial results for the first quarter of 2021. Among other things, Home Point reported sales of $ 324.2 million and missed consensus estimates by $ 41.72 million.

Following the news, Home Point’s share price fell $ 1.66 per share, or 17.7%, to close at $ 7.72 per share on May 6, 2021.

At the time this lawsuit was filed, Home Point’s share price remained below the offering price of $ 13.00 per share, causing harm to investors.

The Pomerantz Firm, with offices in New York, Chicago, Los Angeles and Paris, is one of the leading law firms in the areas of corporate, securities and antitrust disputes. Founded by the late Abraham L. Pomerantz, known as the Dean of the Class Action Chamber, Pomerantz was a pioneer in the field of securities class actions. Today, more than 80 years later, the Pomerantz law firm continues the tradition he founded and fights for the rights of victims of securities fraud, breaches of duty of loyalty and corporate misconduct. The company has collected numerous millions of dollars in damages on behalf of class members. See www.pomerantzlaw.com

CONTACT:
Robert S. Willoughby
Pomerantz LLP
[email protected]
888-476-6529 ext. 7980

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/88808

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