Non-QM lending shops announce merger

New nonqualified wholesale mortgage lender Ardri is growing weeks after entering the segment with a merger that reunites the founders of Athas Capital. 

Calabasas, California-based Ardri announced Monday that it would acquire fellow non-QM firm The Lending Spot. The deal combines the originations experience of The Lending Spot's staff with the technology-focused Ardri, leaders of both companies said. 

The merger brings two brothers back in business together, with Ardri co-founder Brian O'Shaughnessy now working with Kevin O'Shaughnessy, The Lending Spot's CEO.

Both O'Shaugnessys were co-founders of the now defunct non-QM mortgage lender Athas Capital, which shuttered in late 2022 as origination volumes slowed industry wide. Less than a year later, they embarked on forming new, separate non-QM wholesale businesses, with Kevin launching The Lending Spot, while Brian created a company initially known as Imperial Bancorp but is now known as Ardri.

Financial terms of the deal were not disclosed. 

In its 14 years of existence, Athas funded over 14,000 loans, totaling approximately $5.5 billion. The new merger arrives as lenders see origination growth continuing in the non-QM space, largely driven by secondary market demand. Securitizations grew by more than one-third in 2024 on an annual basis.

Ardri followed up its entry into non-QM this year with the notable addition of mortgage veteran Steve Nadon, tapped to lead the company's early-stage growth as its president. In 1992, Nadon co-founded Option One Mortgage, which was later acquired by H&R Block. With a background encompassing traditional, subprime and non-QM lending, Nadon earlier formed Nova Financial Services after beginning his lending career at Transamerica Financial Services. His mortgage background also includes tenures at Plaza Home Mortgage and O2 Funding. 

Moving forward on Ardri growth plans in March, Brian O'Shaughnessy said he hoped to differentiate the new company from his previous non-QM operation, with a goal to "create a compelling value proposition" that would serve brokers through technology. The decision led him to focus on building a new platform. 

The tech focus proved attractive to The Lending Spot, according to its chief executive. "This partnership offers access to Ardri's cutting-edge technology stack," Kevin O'Shaughnessy said.   

"I am excited about the merger as it enables us to integrate our company's unique culture — centered on solutions, exceptional service and certainty of execution — into a powerful new platform," he also noted. 

The deal is the latest in what has turned out to be an active merger-and-acquisition environment in 2025 among both large and small companies. In addition to blockbuster announcements between Rocket Cos., Mr. Cooper and Redfin, the mortgage industry has seen acquisitions involving small regional institutions as well as technology software firms.