Investments Lending Real Estate

Finance of America expands, brings B2R Finance, Jordan Capital Finance into fold

Launches new division focused on lending to real estate investors

Wooden block house on money

Finance of America, a Blackstone Group portfolio company, made quite a splash in recent years as the nonbank revealed a serious growth plan with a series of acquisitions, including Gateway Funding Diversified Mortgage Services, Pinnacle Capital Mortgage and certain assets and operations of PMAC Lending Services

Last year, HousingWire reported that Finance of America planned at least two more acquisitions, but details on the acquisitions were limited.

Now, details of Finance of America’s latest expansion are being revealed, as the company announced Monday that it is launching a new division that will focus on lending to real estate investors.

But the company is doing more than just launching a new division, it’s bringing two new, well-known companies into the fold to launch that division, which will be called Finance of America Commercial.

The details of the deal appear to be complex, but it involves B2R Finance and Jordan Capital Finance, both of which will be folded into Finance of America in some way.

Here’s how Finance of America describes the deal in a release:

The business unit was established following Finance of America Holdings’ investment in B2R Finance and B2R’s simultaneous acquisition of certain assets from private money lender Jordan Capital Finance. Under the terms of the transactions, B2R Finance will operate under a new name, Finance of America Commercial LLC, and joins Finance of America’s leading portfolio of brands. 

According to the release, Jordan Capital Finance CEO Mark Filler will serve as president of Finance of America Commercial, while Jordan Capital Senior Vice President Ben Fertig and B2R SVPs Joe Hullinger and Matt Soto will continue to lead sales efforts and oversee operations for the organization.

B2R Finance is a lender for single-family residential rental property investors, and Jordan Capital Finance is a direct private money lender serving residential real estate investors who acquire, renovate, sell, and rent properties. 

Jordan Capital was founded in 2014 after Hilco Real Estate has sold its private real estate mortgage lending company, Hilco Real Estate Finance, to the Garrison Investment Group, which rebranded Hilco Real Estate Finance into Jordan Capital.

Again, specific details of the transaction are somewhat scarce, but B2R’s website has already been changed to reflect the deal, and a statement from the company announcing the change is posted to the site.

“We are excited to share the news that B2R Finance has joined the Finance of America family of companies as Finance of America Commercial,” the website states. “We’re also glad to welcome our new President, Mark Filler, and other employees from Jordan Capital Finance to our organization.”

The post goes onto to discuss the growth in investor-focused lending in the last few years.

“We are excited by the growth in our industry and grateful to be a lending partner for real estate investors across the country,” the post states.

“When the opportunity for B2R to join the Finance of America family presented itself, we knew that such a relationship would enable us to tap into a global network of mortgage industry experts and continue to grow our business by quickly bringing new product offerings to our customers and expanding our distribution channels,” the post continues. “Mark and others from JCF recognized this opportunity as well, and we are looking forward to continuing to lead this industry together.”

According to details from the Finance of America release, Finance of America Commercial will serve borrowers from Charlotte, NC and Chicago, IL, as well as from regional offices throughout the country.

The company also said that in addition to “maintaining direct relationships with real estate investors,” Finance of America Commercial plans to expand its focus on independent mortgage brokers, and will also “leverage opportunities to work with mortgage advisors within the Finance of America family of companies.”

Brian Libman, executive chairman, Finance of America Holdings, said that the deal is a “natural progression” for the company.

“The addition of commercial loans to our existing suite of products is a natural progression for us and we continue to execute against our vision of becoming a leading diversified national lender with the launch of this new business unit,” Libman said. “The launch of Finance of America Commercial enables us to reach new borrowers and will help us continue to strengthen awareness of the Finance of America brand.”

According to the companies, the transactions closed in mid-February. Terms of the various deals were not disclosed.

“With nearly 16 million rental units in the United States and residential purchase-rehab-resale transactions reaching new highs, the real estate investment opportunity is clear and we believe that Finance of America Commercial will continue to be a leader in the space,” Filler said. “I am excited to be leading this business and am very much looking forward to expanding our distribution channels, continuing to improve upon our products and to providing an excellent experience for our borrowers.”

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