Constellation Mortgage Solutions, the owner of Mortgage Builder, has moved into the reverse mortgage business by acquiring ReverseVision.
Terms of the deal were not disclosed.
ReverseVision’s technology is used by lenders and investors for both the Federal Housing Administration’s Home Equity Conversion Mortgage product as well as private-label reverse loans.
It was founded in 2007, and its core product is the ReverseVision Exchange lending technology. Other offerings are RVDOC Composer for reverse mortgage documents, and ReverseVision Sales Accelerator, which includes advanced loan modeling and comparison tools.
“Constellation and ReverseVision share a dedication to the industries and customers we serve, making this a big win for all,” Stephen Ryczek, general manager of Constellation Mortgage Solutions, said in a press release. “This acquisition expands our footprint in the digital mortgage ecosystem, and we are thrilled to have them join us as we continue to develop innovative and streamlined technology solutions in the lending space.”
Constellation purchased Mortgage Builder, which offers both a loan origination system and a loan servicing platform, in April 2019 from Altisource Portfolio Solutions. Ryczek joined Mortgage Builder in 2017 and stayed on board after the company was sold.
The deal gives Constellation a large stake in a much smaller market. Mortgage Builder’s competitors for the forward mortgage business include dominant player ICE Mortgage Technology on the origination side, and Black Knight, the largest servicing platform provider, which also has a trio of channel-based LOS systems.
“While there are no plans to bring ReverseVision and Mortgage Builder together, we always look to cross sell and will do so with Mortgage Builder and ReverseVision,” Ryczek added in a statement.
ReverseVision is the dominant player in a much smaller, highly concentrated market. Of the top 100 active reverse mortgage lenders for January, only 10 had more than 100 HECM endorsements and just five more companies had more than 50, according to Reverse Mortgage Insight.
“Constellation has a proven track record for supporting its businesses and empowering them to advance the industries they serve,” said Joe Langner, the former CEO and president of ReverseVision. “Our team looks forward to building on our shared principles to continue collaborating with lenders in their mission to help borrowers achieve their financial goals.”
Langner now will be pursuing another opportunity. “We are immensely grateful for his leadership, contributions to the ReverseVision team, and help getting this acquisition over the finish line,” Ryczek said in the statement. “Joe led ReverseVision through a period of historical growth and we wish him all the best as he moves onto the next chapter in his career.”
Houlihan Lokey acted as exclusive financial advisor to ReverseVision.
Also: LendingTree denies it’s the source of a data breach affecting 200,000
Also, Click n’ Close, LendArch, First Community name chief officers, Evergreen promotes long-time leader to president and LenderClose grows its marketing team.
Most of the companies announcing cuts declined to disclose how many workers they terminated, although publicly traded giants revealed their moves would save them tens of millions of dollars this year.
Additionally: FHFA adds reporting mandate for servicers and more layoffs are announced.
Recent reports highlight the question of how much wage growth can do to sustain loan performance as pandemic relief gets rolled back, consumer costs rise and the housing market cools.
The lawsuits claim various loan officers and branch managers diverted loans and other trade secrets to their new employers.
Approximately 8% of listings on the market each week are getting a price cut, while the share of offers facing bidding wars fell below 45% in July, the brokerage’s latest report found.
The company dialed back loan production activities at its call center and from mortgage brokers as interest rates continued to rise.
The rating agency has revised the long-term issuer default rating for PacWest Bancorp and its banking subsidiary, Pacific Western Bank, from “BBB” to “BBB-” and says it doesn’t expect the bank’s common equity Tier 1 ratio to bounce back anytime soon.
As layoffs hit originations, other parts of the mortgage ecosystem are ripe with opportunity
About Author
