Today’s announcement that ProTeck is buying Direct Valuation is no surprise; the appraisal shopping spree is a few years in the making.
And the trend of consolidation among appraisal management companies is likely going to continue and even spread into the mortgage lending space.
It’s well reported, after HousingWire first broke the news, that Amazon is looking to get into the mortgage lending space. Where other news outlets miss the mark, however, is the entry-point strategy.
Recently, Zillow announced similar plans.
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The latest and greatest idea is not to buy a big, national lender, like Amazon or Zillow, but instead to buy several smaller and regional lenders, as we are seeing in the valuation space.
To be sure, both ideas work, so get set for the mortgage lender shopping spree.
Most recently Peakstone’s Mortgage Banking Group announced it is working with "a well-capitalized firm looking to acquire mortgage banks with strong origination."
That’s "banks," not one, single bank. And Peakstone specializes in mergers and acquisitions for middle market clients.
There is also some chatter about a small team of Loan Officers being taking into the Parkside Lending fold. That's unconfirmed as of now, but the rumor is, that team met with execs at Cardinal Financial and couldn't walk away eye-to-eye. But everyone is looking to buy someone.
These examples are just the beginning of the strategic trend to buy up and into the mortgage lending space. We’ll keep you posted.
