Carrington Completes Acquisition Of Valon Mortgage

Carrington Mortgage Services announced on Tuesday that it completed its acquisition of Valon Mortgage from Valon Technologies, adding approximately 810,000 loans to its servicing portfolio and expanding its use of Valon’s artificial intelligence-native servicing technology.

The deal, announced in May of this year, brings together Carrington’s government mortgage servicing expertise and operational scale with ValonOS, the technology platform developed by Valon for mortgage servicing. Carrington will use ValonOS as its core servicing platform under the companies’ strategic partnership.

The combined servicing portfolio is expected to approach 2 million loans, and the transaction expands Carrington’s servicing capabilities through Valon Mortgage’s subservicing relationships and asset acquisition operations.

“The completion of our acquisition of Valon Mortgage marks an important milestone in Carrington’s growth strategy,” Andrew Taffet, CEO of The Carrington Companies, said in a statement. “After spending more time with ValonOS and seeing how it handles the complexity of government servicing, I am more convinced than ever that it is the right platform for Carrington’s next chapter.”

Taffet said the partnership is expected to provide greater speed, control and consistency for borrowers, investors and government agencies.

A fast-growing servicer

Founded in 2019, Valon Mortgage grew to service approximately 810,000 loans and became one of the mortgage industry’s fastest-growing servicers. With the sale of its mortgage servicing business complete, Valon Technologies plans to focus on developing and expanding ValonOS across the broader mortgage servicing industry.

“Valon Mortgage was built to prove that ValonOS could operate at the highest level of complexity in mortgage servicing,” Andrew Wang, CEO and co-founder of Valon, said in a statement. “With the transaction now complete, Valon can focus fully on building the technology infrastructure that powers the broader servicing ecosystem.”

The companies said the partnership is intended to support innovation across conventional mortgages, Ginnie Mae loans, nonqualified mortgages, private-label securities and closed-end second-lien products.

ValonOS is built on a cloud-based architecture designed to support faster technology development and automation across servicing operations. Carrington said the platform was a key factor in its acquisition strategy.

“This is what we set out to build from the beginning: operate a mortgage servicer, prove the technology in production and then scale that technology beyond our own servicing operation,” Linda Du, president and co-founder of Valon, said in a statement.

Du said Valon Mortgage’s employees will begin their next chapter as part of Carrington while Valon Technologies continues its partnership with the company and works to bring ValonOS to a broader market.

Carrington, founded in 2007, said it has achieved approximately 16% annualized growth while expanding its servicing portfolio each year. The company said the acquisition positions it to support homeowners, investors, mortgage originators and servicing clients through greater scale and continued investment in technology and customer service.

The deal follows Carrington’s recent acquisition of Reliance First Capital and advances the company’s strategy to expand its servicing platform and strengthen relationships with mortgage owners and investors. Financial terms of the Valon transaction were not disclosed.

This article was written by Sarah Wolak and generated with the assistance of HousingWire Automation, then reviewed by a HousingWire editor before publication.