10 mortgage partnerships formed as lenders brace for tough times
October 4, 2022 3:26 PM
As the outlook for the mortgage industry turns increasingly negative, the search for partnerships — taking the form of integrations, mergers or the creation of interfaces — will pick up in intensity.
Lenders and vendors create these relationships to fill gaps in their business, often with the additional goal of saving money when incoming revenue is under stress.
The recent transactions include Thrive Mortgage acquiring American Mortgage Service ; Real Brokerage picking up LemonBrew; Select Mortgage Services buying certain assets of Rushmore Loan Management Services and Fitch Ratings agreeing to buy dv01 . Even two trade groups, the Community Home Lenders Association and the Community Mortgage Lenders of America are combining to form the Community Home Lenders of America.
Meanwhile, power buyer Orchard announced partnerships with Lower and Wyndham Capital, while PNC Bank is working with Blend Labs to enhance the application process.
Here is a digest of some of the other partnership activity in the mortgage industry since mid-August:
Lenders and vendors create these relationships to fill gaps in their business, often with the additional goal of saving money when incoming revenue is under stress.
The recent transactions include Thrive Mortgage
Meanwhile, power buyer
Here is a digest of some of the other partnership activity in the mortgage industry since mid-August:
Cornerstone completes bank purchase
On Oct. 3, Cornerstone Home Lending announced it completed the purchase of Roscoe State Bank. The transaction was first announced in June 2021.
Now that the deal has been completed, Cornerstone is using Roscoe's assets to create Cornerstone Capital Bank, which has more than $380 million in regulatory capital and greater than $1.5 billion in assets. Marc Laird is the founder, chairman and CEO of Cornerstone.
Cornerstone Home Loans President Adam Laird is now CEO of mortgage banking, with continued responsibility for overseeing the mortgage lending origination and servicing business.
"This is an incredible milestone for Cornerstone," said Adam Laird in a press release. "The strategic combination of mortgage lending, loan servicing, commercial and digital banking, and additional financial services and products, together with caring team members and our award-winning culture, will propel our continued success for generations to come."
The residential mortgage business will operate under the Cornerstone Home Lending brand. The retail banking unit will use the Roscoe name in Nolan County and Bastrop County, Texas markets, and Cornerstone Capital Bank in metropolitan Texas and digital markets.
Now that the deal has been completed, Cornerstone is using Roscoe's assets to create Cornerstone Capital Bank, which has more than $380 million in regulatory capital and greater than $1.5 billion in assets. Marc Laird is the founder, chairman and CEO of Cornerstone.
Cornerstone Home Loans President Adam Laird is now CEO of mortgage banking, with continued responsibility for overseeing the mortgage lending origination and servicing business.
"This is an incredible milestone for Cornerstone," said Adam Laird in a press release. "The strategic combination of mortgage lending, loan servicing, commercial and digital banking, and additional financial services and products, together with caring team members and our award-winning culture, will propel our continued success for generations to come."
The residential mortgage business will operate under the Cornerstone Home Lending brand. The retail banking unit will use the Roscoe name in Nolan County and Bastrop County, Texas markets, and Cornerstone Capital Bank in metropolitan Texas and digital markets.
First Financial selects RiskExec for fair lending
First Financial Bank selected RiskExec, a subsidiary of Asurity Technologies, to assist in automating its Home Mortgage Disclosure Act, Community Reinvestment Act and fair lending processes.
The pairing was developed through a preferred provider relationship with the Lenders One alliance.
"We are pleased to have First Financial Bank added to our growing list of RiskExec users," said Anurag Agarwal, RiskExec president, in a press release. "We look forward to providing our clients with the most up-to-date, robust reporting and analysis solutions possible."
The pairing was developed through a preferred provider relationship with the Lenders One alliance.
"We are pleased to have First Financial Bank added to our growing list of RiskExec users," said Anurag Agarwal, RiskExec president, in a press release. "We look forward to providing our clients with the most up-to-date, robust reporting and analysis solutions possible."
After selling RealtyTrac, Attom buys Estated
Just weeks after selling RealtyTrac to Nations Info, Attom Data Solutions bought Estated, a property data licensing company. Terms of the deal were not disclosed.
"Attom has completed several strategic initiatives to bring more comprehensive real estate data and solutions to the marketplace," said Stuart Bern, executive vice president of corporate development, in a press release. "Despite current economic uncertainty, Attom continues to thrive and evolve."
The Estated transaction joins Attom's 2020 purchase of Home Junction and GeoDataPlus in 2021.
"Attom remains focused on providing the most comprehensive property data available, while delivering data-driven critical insights and analytics-ready property data solutions addressing a wide range of business needs," said CEO Rob Barber. "The synergy between our two companies further enhances our value proposition and will benefit existing customers of both companies and the entire marketplace."
"Attom has completed several strategic initiatives to bring more comprehensive real estate data and solutions to the marketplace," said Stuart Bern, executive vice president of corporate development, in a press release. "Despite current economic uncertainty, Attom continues to thrive and evolve."
The Estated transaction joins Attom's 2020 purchase of Home Junction and GeoDataPlus in 2021.
"Attom remains focused on providing the most comprehensive property data available, while delivering data-driven critical insights and analytics-ready property data solutions addressing a wide range of business needs," said CEO Rob Barber. "The synergy between our two companies further enhances our value proposition and will benefit existing customers of both companies and the entire marketplace."
Title underwriters add to their direct operations
A trio of title underwriters are looking to increase their business by adding branches through the acquisition of title and settlement services providers.
The nation's largest underwriter of title insurance, Fidelity National Financial bought AllFirst Title Insurance Agency and its various regional brands.
AllFirst and its units — FirsTitle, Excel Title Group, Allegiance Title Company, Guaranty Title, Smith Brothers Abstract, Aggieland Title Company and Guaranty Title New Mexico — provide title examination, title plant, abstract and settlement services in 121 counties throughout Texas, Oklahoma, New Mexico and Arkansas.
"This is a significant acquisition of an elite, well-operated, fast growing group of title companies that brings management talent and immediate revenue to FNF in markets that further expand our national footprint," said CEO Mike Nolan in a press release.
Old Republic Title has acquired the operating assets of Houston-based Veritas Title Partners, adding to its existing network of direct operations that includes more than 275 branch and subsidiary office locations nationwide.
"Veritas Title is one of the premier local title agents in the Houston area and adding their group of experienced title professionals to our Houston Division will enhance Old Republic Title's existing operations," said Carolyn Monroe, president of Old Republic Title in a press release.
Finally, Stewart Information Services bought FNC Title Services, a nationwide company which specializes in reverse mortgage closings.
"As more and more homeowners are looking at home equity as a viable retirement savings, the demand for reverse mortgages is increasing, and FNC has built one of the largest and best settlement service providers for reverse mortgages," said Stewart CEO Fred Eppinger in a press release. "Their strength in reverse mortgage complements our existing Lender Services business lines and continues our momentum as we build a leading Lender Services organization."
FNC will continue operating as a standalone company.
The nation's largest underwriter of title insurance, Fidelity National Financial bought AllFirst Title Insurance Agency and its various regional brands.
AllFirst and its units — FirsTitle, Excel Title Group, Allegiance Title Company, Guaranty Title, Smith Brothers Abstract, Aggieland Title Company and Guaranty Title New Mexico — provide title examination, title plant, abstract and settlement services in 121 counties throughout Texas, Oklahoma, New Mexico and Arkansas.
"This is a significant acquisition of an elite, well-operated, fast growing group of title companies that brings management talent and immediate revenue to FNF in markets that further expand our national footprint," said CEO Mike Nolan in a press release.
Old Republic Title has acquired the operating assets of Houston-based Veritas Title Partners, adding to its existing network of direct operations that includes more than 275 branch and subsidiary office locations nationwide.
"Veritas Title is one of the premier local title agents in the Houston area and adding their group of experienced title professionals to our Houston Division will enhance Old Republic Title's existing operations," said Carolyn Monroe, president of Old Republic Title in a press release.
Finally, Stewart Information Services bought FNC Title Services, a nationwide company which specializes in reverse mortgage closings.
"As more and more homeowners are looking at home equity as a viable retirement savings, the demand for reverse mortgages is increasing, and FNC has built one of the largest and best settlement service providers for reverse mortgages," said Stewart CEO Fred Eppinger in a press release. "Their strength in reverse mortgage complements our existing Lender Services business lines and continues our momentum as we build a leading Lender Services organization."
FNC will continue operating as a standalone company.
LodeStar calculator available to Stewart clients
Separately, Stewart worked with LodeStar Software Solutions to create an integration for the latter's closing fee calculator.
Clients are able to access the title and settlement fees of any Stewart-related company, including those of independent title agencies issuing Stewart policies.
Users are able to streamline and accelerate the creation of cost estimates required to be included in the mandatory loan estimate disclosure with guaranteed accuracy.
"This integration makes accurate fees available instantly from a sizable population of the title agent community," said Jim Paolino, LodeStar CEO, in a press release. "As a result, we're bringing greater clarity to the process for consumers and professionals alike, and empowering loan officers and lenders to redirect their human resources away from manual tasks like researching closing fees and toward more complex functions like marketing, sales and customer service."
Clients are able to access the title and settlement fees of any Stewart-related company, including those of independent title agencies issuing Stewart policies.
Users are able to streamline and accelerate the creation of cost estimates required to be included in the mandatory loan estimate disclosure with guaranteed accuracy.
"This integration makes accurate fees available instantly from a sizable population of the title agent community," said Jim Paolino, LodeStar CEO, in a press release. "As a result, we're bringing greater clarity to the process for consumers and professionals alike, and empowering loan officers and lenders to redirect their human resources away from manual tasks like researching closing fees and toward more complex functions like marketing, sales and customer service."
Two front-end systems integrate with pricing engines
Two recent integrations link a loan origination or point of sale systems with a product and pricing engine. POS MortgageHippo and Polly have united their respective systems, while LOS LendingPad has done the same with Lender Price.
Mutual customers can access Polly's product and pricing engine and fully customize their unique price configurations from directly within the MortgageHippo point-of-sale platform.
"We are only getting started with the PPE technology, as future integrations will follow," MortgageHippo CEO Valentin Saportas said in a press release. "We are proud to partner with Polly as they build the next generation suite of capital markets technology."
Meanwhile, the partnership with Lender Price will provide loan officers with product eligibility discovery and competitive pricing analysis in a single application, integrated through the LendingPad system.
"Brokers and lenders utilizing the LendingPad LOS will have real-time access to Lender Price's most extensive and comprehensive selection of wholesale lender's products and pricing," said Dawar Allimi, Lender Price CEO in a press release. "This type of integration will enable the LendingPad user base to locate additional products, including agency, non-agency, non-QM and home equity, using Lender Price's user-friendly interface."
Mutual customers can access Polly's product and pricing engine and fully customize their unique price configurations from directly within the MortgageHippo point-of-sale platform.
"We are only getting started with the PPE technology, as future integrations will follow," MortgageHippo CEO Valentin Saportas said in a press release. "We are proud to partner with Polly as they build the next generation suite of capital markets technology."
Meanwhile, the partnership with Lender Price will provide loan officers with product eligibility discovery and competitive pricing analysis in a single application, integrated through the LendingPad system.
"Brokers and lenders utilizing the LendingPad LOS will have real-time access to Lender Price's most extensive and comprehensive selection of wholesale lender's products and pricing," said Dawar Allimi, Lender Price CEO in a press release. "This type of integration will enable the LendingPad user base to locate additional products, including agency, non-agency, non-QM and home equity, using Lender Price's user-friendly interface."
Lenders form an East-West connection
A pair of lenders based on opposite coasts, Vellum Mortgage of Fairfax, Virginia, and JVM Lending of Walnut Creek, California, have created a strategic partnership.
"Many mortgage banks recruit us because they want our volume and to be associated with our reputation, but we are extremely fastidious regarding partner selection," JVM co-founder Jay Voorhees said in a press release. "I have no doubt that our partnership with Vellum will benefit the unique models of each entity."
The partnership will allow JVM to adapt and pivot quickly to unexpected changes and to quickly establish new outside-the-box investor relationships, Voorhees continued.
"Reasons to partner with JVM are limitless, chief among them are the opportunities to combine best practices and deliver value across the entire mortgage process," said Patrick Gardner, one of Vellum's principals.
"We recognize there is never a finish line in innovating and great execution, which is why Vellum is always open to such top shelf partnerships," added its other principal, Jay Curley.
"Many mortgage banks recruit us because they want our volume and to be associated with our reputation, but we are extremely fastidious regarding partner selection," JVM co-founder Jay Voorhees said in a press release. "I have no doubt that our partnership with Vellum will benefit the unique models of each entity."
The partnership will allow JVM to adapt and pivot quickly to unexpected changes and to quickly establish new outside-the-box investor relationships, Voorhees continued.
"Reasons to partner with JVM are limitless, chief among them are the opportunities to combine best practices and deliver value across the entire mortgage process," said Patrick Gardner, one of Vellum's principals.
"We recognize there is never a finish line in innovating and great execution, which is why Vellum is always open to such top shelf partnerships," added its other principal, Jay Curley.
FormFree adds three collaborations
Since the start of August, credit decisioning fintech FormFree has entered into three business arrangements.
With HomeScout, it launched HomeScout Qualified Borrower, a tool that helps lenders generate leads and concentrate borrower conversion efforts on mortgage-ready home buyers.
Next, FormFree integrated its AccountChek service into Finastra's MortgageBot LOS to facilitate an automated asset, income and employment verification process.
Finally, AccountChek has been integrated with Solex from Docutech , a First American company, also to verify assets, employment, income and rental payment history.
With HomeScout, it launched HomeScout Qualified Borrower, a tool that helps lenders generate leads and concentrate borrower conversion efforts on mortgage-ready home buyers.
Next, FormFree integrated its AccountChek service into
Finally, AccountChek has been integrated with Solex from
Snapdocs and BeSmartee complete integration
Snapdocs, a provider of digital closing technology, completed its integration with BeSmartee's digital mortgage system.
"Our integration with BeSmartee is another step in our mission to deliver perfect closings at scale," said Todd Maki, vice president of Business Development & Partnerships at Snapdocs, in a press release. "We believe borrowers deserve a seamless mortgage experience, regardless of the parties or technologies involved."
The integration is supported by Snapdocs' multi-party workflow engine, which coordinates the activities of all stakeholders in a closing.
"Our integration with BeSmartee is another step in our mission to deliver perfect closings at scale," said Todd Maki, vice president of Business Development & Partnerships at Snapdocs, in a press release. "We believe borrowers deserve a seamless mortgage experience, regardless of the parties or technologies involved."
The integration is supported by Snapdocs' multi-party workflow engine, which coordinates the activities of all stakeholders in a closing.
InstaMortgage becomes the first lender using Milestones' portal
InstaMortgage is providing its clientele with use of Milestones' homeownership portal, the first company to do so.
Milestones looked to offer homeowners the same experience as with existing consumer portals in healthcare, personal finance and education. Its product monitors home values, provides search for homes for sale and manages the selling process and the mortgage process.
For existing clients, loan officers can invite clients into web-based hubs to manage home maintenance, view home values, monitor home sales in their area, search for property, and even identify mortgage refinance, trade-in, or HELOC options.
"Most loan officers disappear when the ink is dry on the loan," says Dustin Gray, Milestones founder and CEO. "Having the loan officer available to answer financial questions throughout the homeownership life cycle is critical to driving repeat client business, and providing tools that support recruiting and retaining great loan officers."
Milestones looked to offer homeowners the same experience as with existing consumer portals in healthcare, personal finance and education. Its product monitors home values, provides search for homes for sale and manages the selling process and the mortgage process.
For existing clients, loan officers can invite clients into web-based hubs to manage home maintenance, view home values, monitor home sales in their area, search for property, and even identify mortgage refinance, trade-in, or HELOC options.
"Most loan officers disappear when the ink is dry on the loan," says Dustin Gray, Milestones founder and CEO. "Having the loan officer available to answer financial questions throughout the homeownership life cycle is critical to driving repeat client business, and providing tools that support recruiting and retaining great loan officers."
