New Fed Mortgage, a growing mortgage lender based in Massachusetts, is set to expand its business even more through the acquisition of Commonwealth Mortgage, a direct-to-consumer lender that is also based in Massachusetts.
New Fed announced earlier this week that it will be acquiring Commonwealth in the next few months. The acquisition will continue a period of growth for New Fed, which added 25 new employees and two new retail branches in 2018.
New Fed is currently licensed in seven states, operating primarily in New England, but the acquisition of Commonwealth will allow the company to expand its base of operations.
“Over the past year we have built our infrastructure and have been looking for opportunities for growth. Our vision for growth has been through retail branches in New England and to open a consumer direct channel outside of New England,” New Fed President Brian D’Amico said.
“The acquisition of Commonwealth enables us to do that while expanding our lending footprint,” D’Amico added. “We are now more versatile with our current infrastructure and more importantly we have the right people in place.”
By acquiring Commonwealth, New Fed will expand its lending operation into Virginia, Illinois, Maryland and Pennsylvania. According to the company, it also plans to bring on additional staff to lead its internet mortgage division.
“The acquisition will facilitate us to grow the company further and serve other markets in more states as well as to integrate and build out their existing platform of mortgage loan servicing which will create stronger relationships with our borrowers in the future,” D’Amico added.
Financial terms of the deal were not disclosed.