FinTechMortgage

Covius buying sizable chunk of Chronos Solutions’ business

Set to acquire credit, verification, REO, and auction businesses

Covius Holdings, the technology solutions provider formerly known as LenderLive, is about to grow its business significantly by acquiring a sizable chunk of Chronos Solutions.

According to Covius, which was recently named among the 2019 HW Tech100 winners, the company has agreed to acquire Chronos’ credit, flood, income and tax verification services, government services, REO management and disposition, online foreclosure auction, and homeowners association tracking units.

Specifically, Covius is set to acquire the following business segments from Chronos:

  • Credit reporting and modeling
  • Borrower verification services
  • Flood determinations
  • Appraisal review technology
  • Lien release and tax tracking
  • HOA risk mitigation services
  • Government services
  • REO asset management and disposition services
  • Online foreclosure auction services

In a release, Covius states that the acquisition will “complement Covius’ extensive offerings in document management, loan modification and loss mitigation, title, compliance management, lien tracking, valuations, due diligence and business process workflow services.”

The move is a continuation of Covius’ strategy to shift more into technology, a plan that led to the company’s name change as well.

Part of that shift included the company’s 2018 acquisition of reQuire Holdings, a group of technology-enabled companies that provide compliance, quality assurance and valuation solutions for both the residential and commercial real estate markets.

The company later sold off its mortgage fulfillment and secondary marketing division, LenderLive Network, to Computershare Loan Services.

And now, it's is growing its technology business.

“For the past 18 months, we have been rigorously executing a strategic plan to invest in technology-enabled services while divesting our private-label fulfillment operation,” Rob Clements, chairman and chief executive officer of Covius Holdings, said. “Combined with New Residential Investment Corp’s recent agreement to make an investment in Covius, this acquisition further expands the critical services that Covius can digitally deliver across the mortgage ecosystem and deepens our product offerings.”

John Surface, Covius’ president and chief operating officer, said the acquisitions are “very complementary” to the company’s current offerings.

“The transaction will strengthen Covius’ presence on the origination services side of the market, broaden our solutions for servicers and asset managers and bring us several established delivery platforms, including FundingSuite, Taxdoor and RealtyBid,” Surface said. “We intend to increase the support behind these businesses and create new synergies with our current products. We look forward to welcoming and working with Chronos’ clients.”

As part of the deal, Chronos’ “key senior management and operating team members” will be joining Covius.

“The acquisition by Covius is a natural fit for the Chronos set of businesses and represents an exciting opportunity to join a growing company with a strong financial position and diverse client base,” said Mark Hikel, CEO of Chronos Solutions. “We could not be more excited about this new partnership and what it will mean for our clients and employees.”

According to the companies, the deal is expected to close in one to two months. Financial terms were not disclosed.

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