Dream Finders invests fully in mortgage banking company (Courtesy of the Jacksonville Daily Record) — Jacksonville-based Dream Finders Homes Inc. is now fully in the mortgage banking business.
As the homebuilding company reported an increase in second-quarter earnings, it also said it acquired the remaining interest in a joint venture called Jet HomeLoans.
Dream Finders previously owned 60% of Jacksonville-based Jet and paid $9.3 million to acquire the remaining 40% of the mortgage company July 1.
“We are confident this transaction will enhance overall profitability for DFH and drive significant shareholder value,” Dream Finders CEO Patrick Zalupski said in an Aug. 1 news release.
Dream Finders reported second-quarter revenue rose 12% to $1.056 billion, with earnings rising 18% to $80.9 million, or 83 cents a share.
Home closings rose 10% to 1,846 in the quarter and net new orders rose 3% to 1,712.
The average sales price of homes closed rose 2% to $514,833.
“Despite the continued home affordability and interest rate challenges, Dream Finders achieved another strong quarter driven by our continued focus on strategic growth and operational efficiencies,” Zalupski said in the news release.
Dream Finders does not hold quarterly conference calls to discuss earnings.
Jet originated 2,061 home loans with a principal amount of $904 million in the first six months of the year, Dream Finders said.
The mortgage company generated $13 million in pretax income in the first half of 2024, when it was part of the joint venture and not a full subsidiary of Dream Finders.
“Acquiring the remaining 40% was an easy decision based on what we believe the earnings will be going forward,” Zalupski said.
Securities and Exchange Commission filings show Dream Finders owned 49.9% of Jet when the homebuilder went public in 2021.
Dream Finders increased its stake in Jet to 60% in September 2023.
The company acquired the remaining 40% from Orlando-based mortgage lender FBC Mortgage LLC.