Private money lender adds in-house servicing

CV3 Financial Services, the company started last September by William Tessar after the messy split with his former company Civic Financial's then-parent PacWest Bancorp, has expanded into the servicing function.

The new division at the business purpose lender is called ServEase. In most mortgage operations, the origination and servicing businesses are separate, with minimal communication between the two functions, CV3 said.

That results in a disjointed customer experience, it continued.

"Traditionally, customers may work with CV3 for just 30 days to apply for and close a loan, but then they are paired with a servicing provider for the life of the loan," Tessar, president and CEO, said in a press release. "At CV3, we believe that our responsibility to our customers extends far beyond origination. The convergence of origination and servicing under the CV3 banner provides continuity to ensure that the exceptional service and care our customers receive from day one is seamless throughout their entire journey."

CV3 recently announced it funded $1 billion in private money loans in its first year in business, primarily to real estate investors for fix-and-flip and rental properties, and for ground up construction.

Tessar founded the company after the situation with PacWest unraveled. PacWest acquired Civic in February 2021 and had taken a hands-off approach for nearly two years.

But a new management team looking to take more control of Civic resulted in Tessar's termination in January 2023. PacWest, having liquidity issues, then turned around and sold Civic to Roc360 that May.

While the aim was to keep the Civic staff together, the buyer was reportedly only interested in the sales staff, which was not aligned with that goal, an industry source said at the time. So Roc360 only acquired the origination assets, including the brand, trademarks and website.

Within months, Tessar was able to organize over 150 former Civic team members and start CV3.

The new company started in 21 states and is now up to 35. Its first $100 million volume month was July.

"It's rewarding to have achieved such unprecedented growth and success despite the headwinds and challenges facing the mortgage and real estate industry," Tessar stated. "Every milestone we've achieved is a testament to our 200 experienced and dedicated employees, who are committed to delivering the highest level of professionalism and customer service every single day."