Ginnie Mae loan servicing specialist Carrington Mortgage Services, in collaboration with a private equity partner, is acquiring Valon Mortgage in a deal that adds approximately 800,000 loans to the California-based company’s servicing portfolio.
Those loans represent approximately $197 billion in unpaid principal balance, a Valon media representative told Scotsman Guide, with the portfolio “primarily made up of loans for which Valon serves as the subservicer.”
As part of the agreement, Carrington will implement ValonOS as its core servicing platform, an AI-native system developed by parent company Valon Technologies that’s designed to capture decision logic unpinning servicing data.
The Valon platform represents “the future of Ginnie Mae servicing technology,” according to Andrew Taffet, CEO of The Carrington Companies.
“Our team evaluated this platform extensively and came away with a shared conviction: Combining Carrington’s operational depth and government lending expertise with Valon’s technology will produce not just the most sophisticated Ginnie Mae servicer in the country, but the most efficient,” Taffet said in a press release.
Ginnie Mae, a government-owned corporation, guarantees mortgage-backed securities composed of single-family and multifamily loans insured by government agencies, including the Federal Housing Administration and the Department of Veterans Affairs.
Valon co-founder and CEO Andrew Wang called Carrington’s Ginnie Mae servicing depth “exceptional” in a statement.
“Their expertise will make ValonOS the definitive platform for the most complex corner of the industry, and our technology will give Carrington the infrastructure to do what they already do best — at even greater scale,” Wang said. “This is exactly the kind of partnership that makes both companies better.”
Another Valon co-founder, President Linda Du, emphasized that the offloading of Valon Mortgage doesn’t mean the company is turning its back on the mortgage world.
“This transaction is structured to let us do what we always intended: go all-in as a technology company,” Du stated. “We’re not exiting the mortgage industry. We’re choosing to power it.”
