Chronos Solutions, a national real estate finance services provider, has agreed to acquire Cogent Road, a San Diego-based mortgage technology company. The acquisition will allow Chronos to expand its suite of products and services supporting mortgage lenders as well as add a deep bench of mortgage technology talent. Here’s the story:
Cogent Road develops three core products for the mortgage origination market. The first, Funding Suite, (http://www.cogentroad.com/funding-suite) is a premier credit and data purchasing platform designed for mortgage lenders. Funding Suite not only provides credit information but does so in a format that allows lenders to analyze ways to improve a borrower’s credit real time as well as tracks spend at the loan level. Tax Door (www.taxdoor.com) is a fully automated tax transcript solution that allows users to order verified income data via Internal Revenue Service tax transcripts without requiring signed 4506Ts. Tax Door has a 100% success rate, where the industry is used to one in the 15% range. The third, Roohmz, is one of the leading loan origination systems in the industry.
According to Chronos Solutions CEO, Matt Martin, the acquisition adds over 300 customers to the Chronos family and further supplements its broad existing suite of origination services. “Cogent Road offers an incredible array of superior origination technology,” he said. “The combination of these products with Chronos’ already-formidable suite of origination solutions empowers us to deliver end-to-end service to originators of any size.”
Cogent Road CEO, William DiPaolo, agrees. “Cogent Road prides itself on delivering flexible, robust technology designed to move the origination industry forward,” he said. “In collaboration with Chronos’ wide variety of services and resources, we can deliver at elite levels virtually any service a mortgage lender might require.
Martin further stated that Chronos intends to grow the Cogent Road acquisition into a mortgage and real estate technology lab, based in San Diego. “We expect to announce multiple new products and services in the coming year with the help of Cogent Road’s talented team.”
This transaction marks the second acquisition for Chronos Solutions this year. In January, the firm acquired Realtybid.com, a leading online real estate auction marketplace. Martin notes that, since the acquisition, Realtybid has grown by 800% as a part of the Chronos Solutions family. “We expect to achieve similar levels of growth and success with Cogent Road as well,” he said.
Financial terms of the transaction were not disclosed. Holland & Knight LLP served as legal counsel to Chronos Solutions, while Stinson Leonard Street LLP served as legal counsel to Cogent Road. Berkery Noyes served as exclusive strategic and financial advisor to Cogent Road.