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Big News: LOS Gets Acquired

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.

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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.

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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.

New Property Disposition Services Emerges

Chronos Solutions, a diversified national real estate services firm, has introduced a new service to help sellers in the disposition of HUD, VA and non-performing loan (NPL) sales via its affiliate company,  RealtyBid.  The new product, Trustee Sale Plus, diminishes servicers’ transaction risk in the event a third party doesn’t purchase the property at the courthouse auction. RealtyBid is the only company in the country that can immediately provide second chance online auctions, “plus” title curative and Chronos’ signature HOA/Condo Lien Identification and Resolution service, collectively called ConveyancePrep. ConveyancePrep is available to support any servicer or institutional investor with assets in need of conveyance or marketable title assistance, and is included for free when utilized under the Trustee Sale Plus program. The company also provides best in class eviction management for a nominal additional fee.

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According to Matt Martin, CEO and co-founder of Chronos Solutions, Trustee Sale Plus offers unparalleled value to the servicing community. “The title curative process can be expensive and many servicers simply aren’t set up to do it,” he said.  Martin also pointed out that a number of other realities routinely make the process cumbersome for servicers. “Some foreclosure attorneys fail to cure title completely, leading to costs and delays. HUD requires any Home Owner Association obligations, such as liens and fees, to be current at the time of conveyance, but identifying those obligations can be a major challenge,” he said. “Also, if a property isn’t conveyed in a timely manner, the resulting fees and penalties can be massive and cost prohibitive for the servicer.” Martin emphasized that over all, the conveyance process is not a simple one.  “There are significant time and cost savings for a servicer by allowing a trusted third party provider such as Chronos to manage its auction programs through a product like Trustee Sale Plus. We are aware of no other service program in the industry that overcomes the inherent challenges as comprehensively,” he said. For their fee, Martin explained, the other auction companies will only premarket the asset, hold the sale and coordinate second chance bidding. At that point, if the asset has not sold, the servicer is on its own, left with sole responsibility to cure title, manage the eviction process, identify and resolve HOA issues and process the property for conveyance. With Trustee Sale Plus, Chronos picks up where the others leave off, providing the servicer with a true, through to conveyance partnership.

Chronos’ performance centers on the renowned success of the RealtyBid.com auction platform.  RealtyBid President Tony Isbell said, “We have very strong experience and a proven track record in driving traffic and selling distressed assets through various channels, including at the courthouse steps, online, and in ballroom settings.  This service offering will drive more third party sales for sellers and assist in reducing carrying costs associated with distressed assets.” Isbell added, “For those assets that don’t sell at auction, we provide the additional peace of mind through our “plus” program of helping make sure those properties are ready to be disposed of by other means by providing clear, marketable title. It’s the best of both worlds.”

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To further assist in the process, Chronos can provide other niche services, including title, valuations and inspections. “Sellers are attuned to bundled services today more than ever, particularly given the concerns posed by additional vendor management scrutiny by regulators,” Martin said.  “The faster and more comprehensive you can be in the disposition process, the better the results for everyone.  Trustee Sale Plus promises to make that happen and raise the bar for trustee sales as a comprehensive and cost effective solution,” he said.