SAN FRANCISCO, March 15, 2021 /PRNewswire/ -- Blend, a
leader in digital lending software, today announced it has entered
into a definitive agreement with Mr. Cooper Group, Inc. (NASDAQ:
COOP) to acquire Title365, a top provider of title insurance and
settlement services. Together, Blend's technology platform and
Title365's operational expertise in title, escrow, and settlement
will help financial institutions more efficiently and effectively
engage with consumers across a fully integrated homebuying
journey.
"Since its inception, Blend has been on a mission to create a
simpler, more transparent, more accessible financial services
ecosystem with the power to help more people reach their financial
goals, like purchasing a home," said Blend Co-founder and CEO
Nima Ghamsari. "Title and settlement
are manual, time-consuming processes for consumers and lenders, and
by bringing all parties into the same automated platform we can
vastly improve the experience. With an intense focus on its
customers and operational efficiency, Title365 is the right match
to help us scale our efforts and make an immediate impact in that
space."
Blend's work to build a single, cloud-based platform to power
the full consumer homebuying journey began in 2018 with the launch
of its homeowner's insurance offering, and continued in 2020 with
the launch of its digital closing solution, Blend Close. Many
lenders, including U.S. Bank, BMO Harris Bank, First Horizon Bank,
and Nationwide Mortgage Bankers, are taking advantage of these
products. This acquisition and the investment in title, which is a
key piece of the homebuying puzzle, and often plagued by unforeseen
complexity, is the next step toward completing the journey.
Blend and Title365's combined strengths will result in a digital
homebuying journey that drives efficiency and cost savings for all
parties by deeply integrating title and settlement into the loan
process. The new capabilities will include a best-in-class closing
and settlement experience and a marketplace of title agencies,
including TitleVest, supplying lenders and consumers with maximum
flexibility and choice. Title365's services will be integrated with
Blend's cloud-based platform, which already enables better service
and a more secure workflow for consumers along with easier
collaboration among lenders, settlement teams, and consumers on
closing fees and other critical information.
The Title365 team, which President Kristen Estrella will continue to lead across
its U.S. and India offices, will
join Blend once the acquisition closes.
"Traditionally, purchasing a home has been riddled with various
complexities, requiring many steps and third-party participants.
We're thrilled to be joining forces with Blend to continue the
great work Title365 has already done," said Estrella. "Together we
have the power to simplify the process for real estate agents,
lenders and servicers, insurers, and others, by leveraging our
industry expertise to offer a seamless experience for
consumers."
Pursuant to the terms of the transaction, Blend will acquire
Title365 for approximately $422
million, reflecting an enterprise value of $500 million, less approximately $31 million in adjustments, and reflecting a 9.9%
ownership interest retained by Mr. Cooper Group. The transaction is
subject to regulatory approvals and customary closing conditions
and is expected to close in the second quarter of 2021.
Advisors
Goldman Sachs & Co. LLC is serving as
Blend's financial advisor, with Latham & Watkins, LLP serving
as legal advisor, Greenberg Traurig LLP and Weiner Brodsky Kider PC serving as regulatory
counsel, and funds managed by Owl Rock Capital providing
financing.
About Blend
Blend helps lenders streamline the
customer journey for any banking product from application to close.
Its Digital Lending Platform is used by Wells Fargo, U.S. Bank, and
over 285 other leading financial institutions to acquire more
customers, increase productivity, and deepen customer
relationships. The company enables customers to process more than
$4 billion in mortgages and consumer
loans per day, helping millions of consumers get into homes and
gain access to the capital they need to lead better lives. To learn
more, visit blend.com.
About Title365
Title365 is a national title insurance
and settlement services provider, founded in 2009 on a commitment
to deliver industry-changing solutions for faster turnaround of
title, escrow and default services. Title365 is a division of Xome,
a real estate services company providing integrated end to end
solutions designed to solve the unique business challenges faced by
mortgage servicers and lenders. Xome leverages data exchange
capabilities and operational expertise across Title, Valuations,
Auction and Field Services to provide intelligent recommendations
throughout the entire real estate and loan lifecycle. For
additional information, please visit Title365's website at
www.title365.com or www.xomesolutions.com.
About Mr. Cooper
Mr. Cooper Group Inc. (NASDAQ: COOP)
provides quality servicing, origination and transaction-based
services related principally to single-family residences throughout
the United States with operations
under its primary brands: Mr. Cooper® and Xome®. Mr. Cooper is one
of the largest home loan servicers in the country focused on
delivering a variety of servicing and lending products, services
and technologies. For more information, visit
www.mrcoopergroup.com.
Contact: Kaitlin Willem –
press@blend.com
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SOURCE Blend