loanDepot, America's lender, today announced it has completed the acquisition of Closing USA (CUSA), a national title, escrow and settlement company and it has entered into a definitive agreement to acquire its affiliate, American Coast Title (ACT). Upon closing of both companies, loanDepot's national licensing footprint for title, escrow and settlement services will expand to more than 30 states and Washington, DC, while driving increased revenues through both loanDepot and business partner channels. The ACT transaction is expected to close in the second quarter of 2017, pending regulatory approval. The terms of the transactions were not disclosed.
With increased volume from additional business channels within the loanDepot platform, CUSA's and ACT revenue will grow while they continue serving their current client base including law firms, commercial developers and top five national bank brands.
"This move is part of loanDepot's long-term growth strategy, which includes strategic acquisitions intended to expand our portfolio with like-minded companies that share our culture and allow us to leverage existing operations, our proprietary technology, and our capabilities to their fullest," said loanDepot Chairman and CEO, Anthony Hsieh. "This team of 120+ professionals is a natural fit for loanDepot, positioning us to drive increased business and strengthen our existing capabilities through state-of- the-art technology, bundled services and increase capacity."
Together, the CUSA and ACT team provide real estate transaction services for lenders across the nation, including escrow closings, title insurance, and searches for title, tax, liens and encumbrances for new and refinanced loans along with default services for foreclosed properties and commercial title insurance. With offices in Rochester, New York and Orange County, California, they will continue to operate as stand-alone entities. Closing USA President Elliot Foo and Chief Operating Officer Tom Vento will continue leading their teams.
"We've worked closely with loanDepot's management for years, which has created highly complementary cultures and tech-enabled processes," said Elliot Foo, president of Closing USA. "We're very excited to join the loanDepot team, and look forward to being at the forefront of modern lending as a member of a category-leading team committed to helping responsible borrowers achieve their dreams."
Since launching in 2010, loanDepot has funded more than $90 billion in home, personal and home equity loans. In just seven short years, loanDepot is now the nation's fifth largest retail mortgage originator, and the second largest nonbank consumer lender. Committed to leading the lending industry into the next generation of modern lending, the company continues to make significant reinvestments into its proprietary technology and marketing platform, credit and risk models, and dynamic product delivery systems to empower consumers with access to credit. In the first three quarters of 2016, loanDepot increased fundings by 23 percent compared to the entire year of 2015.