California-based Carrington Mortgage Services announced it will adopt ValonOS as its core servicing platform and will acquire New York City-based Valon Mortgage, the companies announced.
The move will all roughly 800,000 loans to Carrington’s portfolio. Terms were not disclosed.
Carrington Mortgage Services, one of the nation’s largest and most sophisticated independent mortgage servicers and a specialist in Ginnie Mae servicing, and Valon Technologies Inc., which has built a top AI-native operating system for mortgage servicing, said their strategic partnership will advance the next generation of Ginnie Mae servicing technology.
Under the agreement, Carrington will adopt ValonOS as its core servicing platform and, in collaboration with a private equity partner, will acquire Valon Mortgage Inc.
A Demanding Segment
“We’ve seen what Valon has accomplished in a remarkably short period of time, and we believe they represent the future of Ginnie Mae servicing technology,” said Andrew Taffet, CEO of The Carrington Companies. “Our team evaluated this platform extensively, and came away with a shared conviction: Combining Carrington’s operational depth and government lending expertise with Valon’s technology will produce not just the most sophisticated Ginnie Mae servicer in the country, but the most efficient. That’s the right outcome for our borrowers, our investors and the agencies we serve.”
Carrington said that government mortgage servicing is among the most operationally demanding segments of the industry.
It said that agency guidelines, investor reporting requirements, and borrower assistance programs carry a level of complexity and regulatory exposure that has historically made the space resistant to modernization. Carrington said it has spent more than two decades building the processes, controls, and institutional knowledge necessary to service government loans at the highest level of performance and with one of the strongest operational track records in the industry.
Step Change in Efficiency
Carrington noted that the partnership pairs its operational depth with ValonOS’s modern architecture.
It said that ValonOS replaces the fragmented legacy tools that constrained the industry, consolidating workflows, loan data and compliance logic into a single AI-native system of record. Carrington said the result is a step change in efficiency – less manual reconciliation, faster borrower resolution and a more streamlined compliance process across its government and conventional portfolios.
Carrington said the partnership is designed to be collaborative as its expertise will directly shape how ValonOS supports Ginnie Mae workflows, agency reporting, and the loss mitigation programs that define government servicing.
“Carrington’s depth in Ginnie Mae servicing is exceptional, and their commitment to ValonOS as their core platform made this the most natural path forward,” said Andrew Wang, CEO and Co-Founder of Valon. “Their expertise will make ValonOS the definitive platform for the most complex corner of the industry, and our technology will give Carrington the infrastructure to do what they already do best – at even greater scale. This is exactly the kind of partnership that makes both companies better.”
Carrington said that for Valon, the deal marks the culmination of a strategy that has been consistent since its founding: build a mortgage servicer to prove the technology, then scale the platform to power the industry.
“We built Valon Mortgage for one reason: to prove that ValonOS works at the highest level of complexity this industry has to offer – and it does,” said Linda Du, President and Co-Founder of Valon. “This transaction is structured to let us do what we always intended: go all-in as a technology company. We’re not exiting the mortgage industry. We’re choosing to power it.”
Other Acquisitions
The announcement is the latest acquisition in the mortgage industry.
Allen, Texas-based Highlands Residential Mortgage announced recently that it acquired The Equitable Mortgage Corp. a Dublin, Ohio-based company that has spent more than three decades serving clients and real estate partners across Central Ohio, and an additional presence in Southwest Florida.
And, in March, a deal was reached for CrossCountry Mortgage (CCM) to buy Summit Funding Inc., a privately held mortgage banking and servicer with its headquarters located in Sacramento, CA. CrossCountry Mortgage’s (CCM) acquisition of Summit Funding will unite two successful retail lenders.
