Mortgage lenders Doorway Home Loans and Priority Mortgage Thursday announced a merger, the latest of many such deals made during a challenging mortgage market. The companies did not disclose the financial terms of the agreement.
Both companies have more than 30 years of experience in residential direct lending, but want to expand market reach and create greater efficiency.
Priority Mortgage was founded in 1984 in Worthington, Ohio. Doorway Home Loans — founded just three years later, in 1987, by Kirk Hankla in Long Beach, California — will expand geographically through the transaction. With licenses in 30 states, the merger will allow the company to establish a presence in new markets, particularly in the Eastern U.S.
“Establishing an Ohio presence will balance out Doorway’s West Coast high-balance production and expand operational support to our eastern-region teams,” said Matt Danilowicz, CEO of Doorway Home Loans, according to a news release.
Danilowicz will remain CEO of Doorway Home Loans, per terms of the deal. Josh Hill, CEO of Priority Mortgage, will join Doorway’s executive team as its Chief Technology Officer. The executive has a degree in computer science from the Ohio State University and more than 15 years of experience in information technology.
For Priority, Hill said the overall deal expands marketing, communications and POS systems.
As profit margins tighten, lending professionals are seeking out solutions to increase efficiencies wherever possible. HousingWire Content Solutions Managing Editor Maleesa Smith had the chance to talk with Bob Jennings, executive of underwriting solutions for CoreLogic, who shared what lenders should prioritize in this environment.
Presented by: CoreLogic
“Our originators will now have access to a broader set of loan products to serve their borrowers,” Hill said in a statement.
Doorway will continue operating under its name, while Priority’s loan originators and operations staff will become part of Doorway, going to market under its new moniker: “Priority Mortgage Team, Powered by Doorway Home Loans.”
The companies will combine the loan production of both businesses under Doorway Home Loans’ Fannie Mae and Ginnie Mae authorizations.
Industry observers expect mergers and acquisitions in the mortgage market this year, as rising mortgage rates and declining refinancing volumes affect lenders’ earnings.
In late April, HousingWire reported Ohio-based CrossCountry Mortgage has entered into an agreement to acquire California-based retail lender LendUS.
In the tech space, Intercontinental Exchange, Inc., a software and data company with a mini-empire including ICE Mortgage Technology, in May announced it intends to acquire Black Knight in a $13.1 billion mega-deal.