American Mortgage Consultants, a third-party loan data verification provider, said today that it acquired its major competitor, JCIII & Associates.
The combined firm will operate under the name AMC and is “now the largest transactional due diligence firm in the residential mortgage space,” according to a statement released on the matter.
According to AMC CEO Michael Franco, the purchase is a necessary result of the need for major players in the space to consolidate to increase business scalability.
“The due diligence industry used to be 'mom and pop' players, that all has changed,” Franco told HousingWire Monday. “The business is now institutionalized. You need to be able to do big trades for big players.”
Franco added that AMC operations will be headquartered in Tampa, with flexible satellite offices in big cities such as Chicago, Dallas, Denver and New York.
AMC’s corporate headquarters will remain in New York City,
“This is an exciting development for both firms, which have long held a mutual respect for one another while competing in the marketplace,” said JCIII founder and CEO John Childers. “The new, combined entity offers a team of experts and suite of due diligence services unmatched in the industry.”
Franco added that the increased regulatory burden and higher cost to originate mortgages means greater demand for streamlined due diligence services. The technology available at AMC helps drives the ability of the due diligence firm to expand its footprint in the market, the company said.