SitusAMC, which provides various services, including advisory, outsourcing and technology, to commercial and real estate finance companies, is downsizing one of its business lines, selling majority ownership of its loan insurance entity, Securent Risk Retention Group.
The company announced that Securent, as well as its related data, brokerage and service business, Risk and Insurance Services LLC, have been purchased by investment firm VineLight Ventures. Founded in 2021, Securent offers insurance policies on a wide range of loans and associated products, including Fannie Mae and Freddie Mac loans, securitizations and mortgage-servicing rights.
According to a statement from SitusAMC, Securent’s policies cover underwriting defects, compliance violations, appraisal errors, fraud and many other flaws that may impact loan structures.
The deal will provide additional equity capital for Securent, which will retain Justin Vedder as president under its new ownership.
“Repurchase demands continue to be a material impediment and concern for mortgage company leaders, and fraud related risk will continue to be a challenge throughout the mortgage manufacturing process, especially in RMBS structures,” Vedder said. “The combination of Securent’s proven offering, VineLight’s expertise in building businesses, and the additional capital infusion will allow us to grow and continue provide industry leading solutions to the market.”
VineLight’s business expertise, as Vedder called it, is directly relevant to the mortgage industry; its principals, Bryan Binder and Jason Garmise, previously founded and sold mortgage data and insurance company CastleLine, where they worked with Vedder.
SitusAMC will remain a minority owner of Securent, with a seat reserved on the holding company’s board.
“This transaction, which partners Securent with experienced industry veterans who greatly understand the space, will enable the business to offer a more diverse set of insurance solutions to the industry. We look forward to continuing to work with Securent and maintaining an equity stake in the business,” said Michael Franco, CEO at SitusAMC.
