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Pretium Partners Acquires Selene Holdings

Pretium Partners, LLC (“Pretium”), an investment management firm focused on real estate, mortgage finance and corporate credit with over $10 billion in assets under management, today announced that it has entered into a definitive agreement to acquire Selene Holdings LLC (“Selene”) from funds managed by Oaktree Capital Management, L.P. (“Oaktree”) and Ranieri Partners LLC (“Ranieri”).

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Founded in 2007, Selene is the parent company of Selene Finance LP (“Selene Finance”), a Houston-based residential mortgage servicing company. With more than 500 full time employees, Selene Finance is a special servicer of nonperforming, re-performing, REO and performing loans and is able to service in all 50 states. Selene Holdings also includes SelecTitle, a title services company, and New Diligence Advisors, a national third-party diligence and advisory services firm.

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Donald Mullen, Founder and Chief Executive Officer of Pretium said, “Selene is a best-in-class servicer that adds significant capabilities and expertise to Pretium’s residential credit ecosystem. We look forward to further investing in Selene’s technology and platform and working closely with management to best serve Pretium’s investors and Selene’s clients.”

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Brian Laibow, Managing Director of Oaktree said, “Pretium is a leader in residential credit. They have an institutional culture and demonstrated history of growing customer-focused businesses. As we have built Selene with our clients, it was very important for Oaktree to partner with someone who shares that vision. We’re pleased to have found that in Pretium.”

Joe Pensabene, President and CEO at Selene added, “Selene has always been focused on providing flexible and creative servicing solutions to our clients. We’re excited to join with a partner who shares that approach and commitment to the industry, and look forward to continuing to expand our solutions for the residential credit markets.”

Terms of the transaction were not disclosed. The transaction, which is subject to customary closing conditions and regulatory approvals, is expected to close mid-year 2019.

Houlihan Lokey served as exclusive financial advisor to Selene. Buckley Sandler LLP served as legal counsel to Selene. Sidley Austin LLP served as legal counsel to Pretium.

Tony Garritano

Tony Garritano is chairman and founder at PROGRESS in Lending Association. As a speaker Tony has worked hard to inform executives about how technology should be a tool used to further business objectives. For over 10 years he has worked as a journalist, researcher and speaker in the mortgage technology space. Starting this association was the next step for someone like Tony, who has dedicated his career to providing mortgage executives with the information needed to make informed technology decisions. He can be reached via e-mail at tony@progressinlending.com.

Expansion Through Acquisition

Today’s vendors and service providers have to offer more. So, how are they doing? Some are going the acquisition route.

For example, Richey May, an accounting and advisory firm serving the financial services and real estate industries, has acquired two IT consulting firms that will enable the company to offer a more robust spectrum of IT consulting services for its financial services clients.

Arrow Partnership, a nationwide provider of management and IT consulting services, and Corporate Blue, a cybersecurity and managed IT services firm, will join the recently launched Richey May Technology Solutions division of Richey May. Both acquisitions will enable Richey May to address the growing IT demands of its mortgage banking clients, which include the needs for cloud-based managed services, strategic technology management consulting and cybersecurity risk assessments.

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“Arrow Partnership and Corporate Blue have excellent reputations for providing a wide range of IT consulting services that span multiple industries,” said Ken Richey, founding partner of Richey May. “As the demand for strategic IT planning and compliance intensifies, these acquisitions will ensure we are able to meet the needs of mortgage lenders for years to come.”

Founded in 2003 and based in Denver, Colorado, Arrow Partnership specializes in technology management, governance, risk, compliance and security consulting services, and digital marketing. Arrow Partnership’s managing partner and co-founder Chan Pollock will join Richey May as executive director of the firm’s technology consulting practice, while senior practice leader Garry Woods will head up the company’s governance, risk and controls practice.

Corporate Blue, based in Southern California, provides IT security, virtual chief information security officer services, cloud security and managed IT services. Mike Wylie, co-founder and CEO of Corporate Blue, will join Richey May as a director in the firm’s cybersecurity practice.

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“In this day and age, strategic IT decisions are a cornerstone of any company’s financial health and potential for growth,” said Wylie. “I am delighted to join Richey May, a company firmly committed to helping companies leverage technology wisely to achieve their goals.”

“I’m thrilled to be joining Richey May and have been extremely impressed with their capabilities and dedication to helping lenders run more efficient, profitable and secure businesses,” said Pollock. “I look forward to leading the firm’s technology management consulting practice and working directly with clients to ensure they receive the highest level of expertise in the mortgage industry.”

Richey May Technology Solutions is a results-driven division of Richey May offering the full spectrum of technology solutions, including cloud services, cyber security, marketing technology, governance, risk, controls, privacy and technology management consulting. Led by technology experts with decades of cumulative experience in executive IT roles, the team is focused on providing pragmatic, real-world solutions that deliver value to their clients’ business.

Also, Sandler, LLC (d/b/a Sandler Law Group), has acquired the business operations of McGlinchey Stafford & Youngblood and Associates PLLC (MSYA), a premier closing and fulfillment services provider for the mortgage lending industry.

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This acquisition further enhances the mortgage compliance and origination ecosystem built by regtech investor and regulatory expert Andy Sandler. Asurity Technologies, a leading provider of compliance management and mortgage loan document technology, expands its operations into mortgage closing and fulfillment. All legal services previously undertaken by MSYA will now be performed at Sandler Law Group.

“With this acquisition, Asurity Technologies and Sandler, LLC have further implemented our strategy to set a new mortgage industry standard for economically efficient and fully compliant software and transaction support services,” says Andy Sandler, CEO of Asurity Technologies and Managing Partner of Sandler, LLC.

“We are excited to join the family of companies Andy Sandler has built to offer our clients expanded mortgage closing services. We are now able to provide mortgage lenders access to a powerful ecosystem with known experts in legal, compliance, services, and technology. This is a great opportunity to provide the marketplace with deeper resources and increased efficiencies,” says Vicki Murphy-Gee, Vice President of Sales, Asurity Services and Executive Director, Sandler Law Group.

Asurity Technologies now provides a full range of compliant mortgage documents and mortgage closing and fulfillment services including outsourced closing functions and CD preparation and legal review, wire orders, funding, and shipping, through a team of over 150 mortgage lending specialists and technologists and affiliated legal experts at Sandler Law Group.

About The Author

Tony Garritano

Tony Garritano is chairman and founder at PROGRESS in Lending Association. As a speaker Tony has worked hard to inform executives about how technology should be a tool used to further business objectives. For over 10 years he has worked as a journalist, researcher and speaker in the mortgage technology space. Starting this association was the next step for someone like Tony, who has dedicated his career to providing mortgage executives with the information needed to make informed technology decisions. He can be reached via e-mail at tony@progressinlending.com.

LenderLive Acquires Compliance, QA Company

LenderLive Services, LLC (LenderLive), a mortgage services provider, has acquired reQuire Holdings, LLC (reQuire), a group of technology-enabled companies that provide compliance, quality assurance and valuation solutions for the residential and commercial real estate market. LenderLive acquired reQuire from L2 Capital Partners, a Devon, PA-based private equity family office. The terms of the deal were not disclosed.

Headquartered in Virginia Beach, reQuire offers diverse services, including lien release tracking, title search and reporting services, title curative services, due diligence, quality assurance, asset valuation and business process management (BPM) technology solutions. reQuire’s current products will complement LenderLive’s document and settlement services offerings and enable the combined companies to provide additional compliant solutions to their clients.

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“When John Surface and I joined LenderLive nine months ago, we said one of our priorities would be to use strategic acquisitions to build out the services side of our business and enhance the capabilities of the broader organization,” said Rob Clements, chairman and chief executive officer of LenderLive. “We look forward to joining forces with Al Will and his team at reQuire as we execute on our long-term growth plans.”

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“The acquisition of reQuire strengthens our current franchise and solidifies LenderLive’s position as a leading provider of financial and compliance services,” added John Surface, president and chief operating officer of LenderLive. “The transaction deepens our management team and gives us a broad set of adjacent products that significantly expand our ability to serve our clients.”

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“We are very excited to join the LenderLive family. This combination significantly enhances our scale and capabilities that will enable us to deliver even greater value to our clients and new opportunities for our employees”, said Al Will, chief executive officer of reQuire.

Evercore acted as LenderLive’s financial advisor and Ballard Spahr LLP acted as legal counsel to LenderLive in connection with the acquisition.

ATTOM Acquires Onboard Informatics

ATTOM Data Solutions has acquired Onboard Informatics, a provider of neighborhood data and data-enabled turnkey products to the real estate industry.

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“Onboard has a long and accomplished track record as an innovator in enhancing and democratizing neighborhood data assets, paralleling our own mission of powering real estate transparency,” said Rob Barber, CEO at ATTOM Data Solutions. “This acquisition will benefit existing customers of both companies — and the entire marketplace — by providing complementary datasets in a one-stop data shop.”

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Onboard’s neighborhood data is being integrated into the ATTOM Data Warehouse, which blends property tax, deed, mortgage, foreclosure, environmental risk, natural hazard, and neighborhood data for more than 155 million U.S. residential and commercial properties. A persistent, unique ID assigned to every property record in the ATTOM Data Warehouse — the ATTOM ID — will be used to link the new Onboard neighborhood data with all other datasets, and the combined data will be available through ATTOM’s flexible delivery solutions, including bulk file license, APIs and customized reports in a one-stop data shop.”

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“This acquisition by ATTOM will enable Onboard’s customers to conveniently access robust tax, deed and mortgage data, that, when combined with Onboard’s neighborhood data, completes the full property data picture needed to improve decision-making, increase lead generation and grow revenue,” said Marc Siden, CEO and Co-founder of Onboard Informatics.

Founded 15 years, ago, Onboard Informatics fuels sales and feeds decision-making for some of the largest U.S. brands, including Century 21, Coldwell Banker and Weichert. Its data products include area data (neighborhood, metro and residential boundaries along with school attendance zones), point of interest data (restaurants, banks, shopping and more), and community data (crime, population, education, weather and commuter times).

“Not only will our customers now be able to access a broader set of property-related data from one vendor, they’ll also have more flexible options for consuming that data through the various ATTOM data delivery solutions including the ability to consume neighborhood data as bulk files,” said Jonathan Bednarsh, president and co-founder of Onboard Informatics.

About The Author

Tony Garritano

Tony Garritano is chairman and founder at PROGRESS in Lending Association. As a speaker Tony has worked hard to inform executives about how technology should be a tool used to further business objectives. For over 10 years he has worked as a journalist, researcher and speaker in the mortgage technology space. Starting this association was the next step for someone like Tony, who has dedicated his career to providing mortgage executives with the information needed to make informed technology decisions. He can be reached via e-mail at tony@progressinlending.com.

Acquisition Furthers Automated Data Verification

QuestSoft, a provider of automated mortgage compliance software, has purchased Laguna Hills, Calif.-based IMARC, a leader in data verification and audit services to the financial services industry. The acquisition adds IMARC’s services to QuestSoft’s new Verification and Audit Services division, “QuestSoft Verifications.”

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The acquisition enables QuestSoft customers to easily conduct loan audits, as QuestSoft Verifications will now offer all of IMARC’s verification and audit services to QuestSoft’s existing 4506-T and SSA-89 capabilities. This new division brings Verification of Employment (VOE), Verification of Income (VOI), Asset and Occupancy Verifications as well as full loan audits to QuestSoft customers, eliminating the need to use time-intensive manual orders to verify all information needed to ensure loan compliance.

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“Combining IMARC’s verification and audit services with QuestSoft’s compliance software gives lenders a one-stop shop for all of their compliance needs,” said Leonard Ryan, founder and president of QuestSoft. “IMARC also brings with it a strong tradition of outstanding customer service and a dedication to providing high quality services quickly and efficiently, blending well with the QuestSoft commitment to our customers.”

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All IMARC employees transferred to QuestSoft’s corporate headquarters in Laguna Hills, California. Bob Simpson, founder of IMARC, is now serving as QuestSoft’s senior vice president and director of the Verifications Division.

“High quality products, ease of use and outstanding service are the three pillars that build strong relationships between vendors and lenders,” Simpson said. “By combining our services with QuestSoft, we have created the best resource for lenders to handle all of their mortgage compliance, verification and audit needs.”

About The Author

Tony Garritano

Tony Garritano is chairman and founder at PROGRESS in Lending Association. As a speaker Tony has worked hard to inform executives about how technology should be a tool used to further business objectives. For over 10 years he has worked as a journalist, researcher and speaker in the mortgage technology space. Starting this association was the next step for someone like Tony, who has dedicated his career to providing mortgage executives with the information needed to make informed technology decisions. He can be reached via e-mail at tony@progressinlending.com.

CRM Mainstay Acquires Point-Of-Sale Vendor

LoyaltyExpress, a provider of marketing automation and cloud-based CRM solutions for mortgage companies and banks, has acquired Lending Manager, a point-of-sale and website creator for lenders of all sizes.  The acquisition and integration of both companies’ technologies will help automate lead flow and associated marketing for all aspects of the loan process.  The combined company services 115 lenders with over 15,000 loan officers across all platforms. No sale price was disclosed.

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“The ever-increasing expectation of consumers during the lending process led us to this merger,” said Wayne Steagall, Founder of Lending Manager.  “We are thrilled to partner with LoyaltyExpress. We look forward extending our solutions backed with the power of the LoyaltyExpress creative and fulfillment teams.”

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“After extensive due diligence and market research, it became immediately apparent that Lending Manager delivers incredibly efficient and automated lead capture systems and attractive corporate and loan officer websites,” said Jeff Doyle, Chief Executive Officer of LoyaltyExpress.  “Wayne and his team have developed integrations with over 75 CRM, loan origination, lead management, and point-of-sale systems which is a growing requirement of any solution in the mortgage industry. We look forward to integrating CustomerManager with Lending Manager.”

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LoyaltyExpress simplifies CRM and marketing automation for banks and mortgage companies, including one of the top three retail lenders in the nation. Its flagship solution, CustomerManager, is an enterprise-wide, Software-as-a-Service platform that combines lead management, email and direct mail campaigns with a 360-degree view of each loan officer’s customers, partners and prospects. The MarketingCentral service delivers a web-based, sales collateral store powered by custom content creation and integrated print fulfillment. LoyaltyExpress eliminates the need to share sensitive customer data with multiple vendors and has a team of world-class marketing and branding experts with extensive experience in the mortgage industry. LoyaltyExpress is backed by New Capital Partners.

Lending Manager builds custom corporate and loan officer websites for lenders of all sizes. The Company delivers point-of-sale solutions with over 75 integrations with the leading mortgage technology providers. Lending Manager is based in Newark, Delaware.

The M&As Continue

We’ve seen big technology acquisitions when Ellie Mae bought Velocify and CoreLogic bought Mercury Network, but let’s not forget to look at the lending side of the business, as well. For example, Thomas H. Lee Partners, L.P. (“THL”), a premier private equity firm investing in middle market growth companies, acquired a majority interest in Ten-X, LLC (the “Company” or “Ten-X”), the nation’s leading online real estate marketplace. Members of Ten-X’s senior management team, Stone Point Capital, and CapitalG (formerly Google Capital), among others, will continue to hold minority positions in the Company. Terms of the transaction were not disclosed.

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Founded in 2007 and headquartered in Irvine and Silicon Valley, California, Ten-X provides an online real estate marketplace that allows individuals and investors to buy and sell residential and commercial real estate properties using both desktop and mobile channels. By leveraging its market-leading technology platform and extensive international network of buyers, Ten-X empowers consumers, investors and real estate professionals with unprecedented levels of flexibility, control and simplicity to easily complete real estate transactions online. Since its inception, Ten-X has enabled over $50 billion of residential and commercial property sales on its platform.

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The recapitalization will ensure Ten-X has the resources it needs to build on its proven platform, pursue additional monetization opportunities, and execute on its growth objectives. The Company will retain its corporate headquarters in Irvine and Silicon Valley, and will continue to be led by Chief Executive Officer Tim Morse along with other members of its senior management team.

“This investment gives us the scale and resources to accelerate our growth and further expand our platform and product offerings,” said Mr. Morse. “With the support of THL as a partner going forward, we can fully execute on our vision, build on our position as a leader in the online real estate market, and continue to provide our customers innovative products and services.”

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“We are very excited to be partnering with Ten-X, a clear market leader in the real estate industry,” said Jim Carlisle, Managing Director at THL. “We are looking forward to working closely with Tim and the talented management team at Ten-X to further enhance its leadership position and maximize this incredible growth opportunity.”

Wells Fargo Securities LLC and J.P. Morgan Securities LLC acted as financial advisors and Kramer Levin Naftalis & Frankel LLP acted as legal advisor to Ten-X. Guggenheim Securities acted as financial advisor and Kirkland & Ellis LLP acted as legal advisor to THL.

I’m sure we’ll see more deals like this before the year closes. Stay tuned …

About The Author

Tony Garritano

Tony Garritano is chairman and founder at PROGRESS in Lending Association. As a speaker Tony has worked hard to inform executives about how technology should be a tool used to further business objectives. For over 10 years he has worked as a journalist, researcher and speaker in the mortgage technology space. Starting this association was the next step for someone like Tony, who has dedicated his career to providing mortgage executives with the information needed to make informed technology decisions. He can be reached via e-mail at tony@progressinlending.com.

Fiserv To Acquire The Assets of PCLender

Fiserv has acquired the assets of PCLender, LLC, a leader in next generation enterprise internet-based mortgage software and mortgage lending technology solutions. This acquisition will enhance the Fiserv suite of mortgage origination services, which enable Fiserv clients to deliver the experience today’s consumers and mortgage lenders expect. Financial terms will not be disclosed.

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Mortgage lenders operate in an evolving marketplace in which they are challenged to deliver a more efficient lending process in tandem with a compelling borrower experience. Fiserv is working to simplify today’s lending experience for financial institutions and borrowers, delivering powerful tools to originate, process, underwrite and deliver loans in a secure, paperless environment.

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“Rapidly evolving consumer expectations require a seamless approach to banking experiences, including mortgage origination,” said Jeffery Yabuki, President and Chief Executive Officer, Fiserv. “PCLender provides Fiserv with a full digital suite of mortgage origination solutions for banks, credit unions and mortgage lenders. We welcome the existing clients and talented team members to our company.”

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A complement to the existing Fiserv lending solution suite, these assets provide a set of simple, easy-to-use internet-based mortgage solutions for banks, credit unions and mortgage lenders. This fully managed, end-to-end solution simplifies origination, document collection and compliance reporting, streamlining consumer direct and retail mortgage and HELOC loan origination. The technology offers a feature-rich user experience and improved operational efficiency for mortgage lenders with existing resources. Supporting lenders of all sizes, PCLender provides solutions for lenders funding up to 5,000 loans per month.

“Joining Fiserv accelerates our ability to scale our solution, while simplifying solutions for every phase of the loan process to benefit our clients,” said Lionel Urban, Chief Executive Officer, PCLender. “We look forward to leveraging our combined expertise to deliver greater client value and an enhanced experience for their customers.”

About The Author

Tony Garritano

Tony Garritano is chairman and founder at PROGRESS in Lending Association. As a speaker Tony has worked hard to inform executives about how technology should be a tool used to further business objectives. For over 10 years he has worked as a journalist, researcher and speaker in the mortgage technology space. Starting this association was the next step for someone like Tony, who has dedicated his career to providing mortgage executives with the information needed to make informed technology decisions. He can be reached via e-mail at tony@progressinlending.com.

An Acquisition That Makes Sense

As vendors look to serve an evolving mortgage market, they have to broaden their scope of services and their reach. Good vendors are going down this road as we speak. For example, Optimal Blue has just acquired Comergence Compliance.

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Comergence is a provider of third-party oversight solutions in the mortgage industry. Founded in 2008, Comergence provides an array of third-party originator (TPO), appraiser, and social media risk management solutions that verify third-party compliance in real-time, a capability unmatched in the industry.  Comergence has been widely recognized by the industry for its innovations in due diligence automation and ongoing surveillance services. No sale price was disclosed.

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“We are thrilled to welcome Comergence to the Optimal Blue family and we are looking forward to extending their network management platform to our customers,” said Scott Happ, CEO of Optimal Blue. “Comergence solutions help build trust and confidence among marketplace participants by verifying third-party compliance in real-time, a capability unmatched in the industry.”

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“We provide the best due diligence and ongoing surveillance services in the industry,” noted Greg Schroeder, President of Comergence. “We believe that by being part of Optimal Blue we can bring the benefits of our technology and expertise to an even larger segment of the mortgage marketplace.”

Michael Stallings, Executive Vice President of Comergence said, “Recent Comergence innovations, including an analytics tool to help account executives identify new TPO opportunities and a breakthrough solution for social media risk monitoring, strongly complement Optimal Blue’s existing product offering.”

“Optimal Blue and Comergence are well-aligned around our principal mission of facilitating transactions between buyers and sellers of loans,” added Scott Happ. “We are very pleased that Greg, Michael, and the entire Comergence team will be joining Optimal Blue as we execute our shared growth plans.”

About The Author

Tony Garritano

Tony Garritano is chairman and founder at PROGRESS in Lending Association. As a speaker Tony has worked hard to inform executives about how technology should be a tool used to further business objectives. For over 10 years he has worked as a journalist, researcher and speaker in the mortgage technology space. Starting this association was the next step for someone like Tony, who has dedicated his career to providing mortgage executives with the information needed to make informed technology decisions. He can be reached via e-mail at tony@progressinlending.com.

New Valuation Acquisition

Require Holdings, LLC, has completed its acquisition of Service 1st Valuation and Settlement Services, Inc.

Service 1st is a leading provider of valuation risk management services, including: desk reviews, valuation risk analysis, field reviews and market data.

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The Company will be a wholly-owned subsidiary of Require Holdings, joining their portfolio of companies, which include: reQuire Real Estate Solutions, Covius Technology Solutions and Covius Real Estate Services.

Service1st will remain under the leadership of current President and CEO, Mark Oliver, who will report to Require Holdings CEO, Al Will.

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“I am absolutely thrilled about this deal,” Oliver said.

He added, “It is very rare that one company in our space can be acquired by another, where all of our services are complementary, and few redundancies. This is definitely a case where the sum of the whole is far greater than the sum of the parts.”

The Require Holdings CEO echoed Oliver’s excitement.

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“Service 1st has proven itself to be a leader in objective valuation risk management solutions, and also an invaluable resource to clients by providing extraordinary service in a complex regulatory environment,” Will said.

“Their commitment to customer satisfaction isn’t just a part of their name, but it is reflected in all that they do. We share their commitment and are pleased to have found a like-minded partner to further our growth in technology enabled real estate transaction services,” he continued.

The acquisition comes a year after Require Holdings’ acquisition of Covius.

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