Amid wave of mergers and acquisitions expected in 2023, non-bank mortgage lenders american portfolio mortgage corporation And town square mortgage announced Wednesday that the companies are merging their operations.
Thank you for reading this post, don't forget to subscribe!The lenders, both privately held, will retain their names and brands after the transaction, but APMC will be the new legal entity as the companies come together. Financial terms of the deal were not disclosed.
The merger will result in an “increased lending footprint” to better serve customers, Paul Kessel, president of American portfolios, said in a statement.
Town Square Chief Executive Officer Lisa Thomas said the deal also brings “a portfolio of expanded loan products supported by a lending platform with cutting-edge technology”.
Founded in 1993, the Chicago-based direct lender’s US portfolio reached $685 million in volume over the past 12 months, according to Mortgage Tech Platform. modex, The company said it has a full-service retail origination platform that originates agency, government and investor portfolio loans.
Headquartered in Dallas and founded in 2009, Town Square reached $805 million in volume over the past 12 months, Modex data shows. Most originations were conventional and purchase loans.
The companies said the combined lender will have a total of 36 state licenses. According to Modex, the new company will also have approximately 35 branches and 200 active loan officers.
Kessel and Thomas will be board members and officers of the merged company, as will Scott Voraire, current executive vice president of systems and operations at US Portfolio, and Adam Wellwood, president and COO at Town Square.
Still rising mortgage rates have prompted hopes of a wave of merger and acquisition deals this year. This week, Society announced to have legacy mortgage,
Brett Ludden, Managing Director of Sterling Point AdvisorsA mergers and acquisitions (M&A) advisory firm based in Virginia estimates that up to 30% of the 1,000 largest independent mortgage banks are projected to disappear by the end of 2023 through sales, mergers or failures.
Tom Capasse, Managing Partner and New York-based Co-Founder Cascade Asset Management, One global alternative investment manager, with $11 billion in assets under management, predicts that about 20% of the IMB segment will disappear for similar reasons.
