Hatteras Financial Corp has agreed to acquire Pingora Asset Management and Pingora Loan Servicing, subject to regulatory approval.

The target is focused on investing in new production performing mortgage servicing rights and servicing residential mortgage loans.

“Michael Lau and his team have built an industry leading operating platform for investing in MSRs, and we are fortunate to add their portfolio management and master servicing oversight capabilities at Hatteras," said Michael R Hough, Hatteras’ CEO and chairman. 

Hough said that the firm expected to leverage Pingora’s platform and begin investing in MSRs by July.

“Pingora’s focus on developing strategic partnerships with mortgage originators and purchasing flow-based primary market MSRs directly from them is a natural fit with Hatteras and our current agency securities and jumbo ARM flow business. We expect Pingora’s partnerships will help grow our existing direct mortgage purchase program to a more meaningful scale," added Hough.

“We are very excited to join forces with Hatteras,” said Michael Lau, CEO of Pingora. “We share a vision on this opportunity and think our companies’ management styles and views on the mortgage industry dovetail well."

Hatteras also agreed to finance Pingora’s purchase of MSRs related to qualifying mortgage loans that Pingora has agreed to purchase under its current flow agreements during the pendency of the transaction.

Following the acquisition, which is expeced to complete in Q3 2015 Pingora, its management team and employees will remain headquartered in Denver.