SitusAMC, the New York-based real estate services and technology company that’s been on an acquisitions tear over the last year, has another feather in its cap: it has acquired warehouse loan software provider Street Resource Group.
With the deal, SitusAMC now has two of the top warehouse loan software systems on the market, SRG’s Warehouse Loan System (WLS) and SitusAMC’s own offering, ProMerit, which it acquired in 2019 as part of the MBMS transaction.
Combined, ProMerit and WLS will support more than 60 clients, from small lenders originating 40 loans a month for a $500,000 warehouse line, to big IMB lenders receiving $15 billion warehouse lines, said Michael Franco, the CEO of SitusAMC.
Founded by Stanley Street in 1986, SRG currently supports more than 1,500 independent mortgage originators and more than 14,000 users. SRG has historically focused on smaller lenders and the primary markets while ProMerit has catered to bigger IMBs, warehouse lenders and the capital markets side of the business.
“Essentially we’re able to service anywhere from somebody who’s got a half a million dollar line up to clients that have $15 billion in outstandings, every single day,” Franco said in an interview with HousingWire. “That’s a huge swath of the the market that we’re able to cover now here at SitusAMC between the WLS technology and the existing ProMerit software.”
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Franco said he initially had discussions with Street when SitusAMC was in the process of buying ProMerit in 2019. The thesis was that independent mortgage banks would continue to grab market share.
“We realized that they both [SRG and MBMS] had a unique perspective and place in the mortgage lending ecosystem, and we thought that having the two platforms together would be very valuable to the end consumer,” Franco said in an interview with HousingWire.
SitusAMC will retain the SRG team, and Street, SRG’s founder, will serve as vice chairman of SitusAMC Technologies.
The acquisition will lead to greater efficiencies and outcomes for warehouse lenders and their IMB clients, according to Franco and Street. They’re especially interested in providing enhancements that allow large IMBs – who tend to have more than a half dozen warehouse lenders – the ability to achieve even greater scalability.
“We’ve heard from several clients who have let’s say, 10, 12, 15 different lines,” Franco said. “They have to have a bunch of groups internally that try to figure out how to submit loans that get funded. There’s inefficiency in that process for them. We think those lenders will want to have something that makes it easier for them to interface with their lending institutions.”
Because most IMBs deal with a variety of warehouse lenders across both platforms, SitusAMC’s acquisition and integration of the WLS should help them realize synergies and reduce redundancies, he said.
Terms of the deal were not disclosed on Monday.
The deal for SRG is the latest in an incredible year of acquisitions for SitusAMC. The real estate tech and services firm has acquired 10 companies since January 2020, and has made 23 deals since 2015, Franco said on Monday.
Acquisitions include mortgage and title fulfillment company Assimilate Solutions, mortgage compliance software provider Compliance Ease (which is used in about a third of residential originations), and mortgage tech software developer ReadyPrice, among others.
“We’re really excited about the transaction here,” said Franco. “Anytime you can have two systems that are touching $3 trillion in fundings and activity in the market, it’s a pretty good market position to be in. We think it fits in really well here with the broader ecosystem of technology solutions that we have at SitusAMC.”
