NEXA Lending Acquires UMortgage in Major Mortgage Broker Deal

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NEXA Lending is acquiring UMortgage in a major consolidation move involving two prominent companies in the independent mortgage broker channel.

The transaction was announced Sunday, Aug. 23.

Under the agreement, UMortgage will move onto NEXA’s larger operating platform while retaining its brand, marketing, sales culture and client relationships.

UMortgage founder and CEO Anthony Casa will join NEXA as an executive partner.

Financial terms of the transaction were not disclosed.

UMortgage produces more than $2 billion in annual mortgage volume and employs roughly 275 people, according to information released in connection with the transaction. The Philadelphia-based mortgage company has also appeared on the Inc. 5000 list for three consecutive years.

The acquisition gives UMortgage access to NEXA’s broader technology, lender relationships, compliance infrastructure and national operating platform while preserving the parts of the UMortgage organization that are visible to its loan originators, referral partners and borrowers.

For NEXA, the transaction adds another sizable mortgage brokerage operation to a platform that has been expanding during a period of continued consolidation across the mortgage industry.

The combination is particularly notable because independent mortgage companies continue to face substantial costs associated with technology, compliance, licensing, legal requirements and other operating infrastructure.

Greater scale can allow mortgage organizations to spread those expenses across larger production volumes while maintaining resources for loan originators and consumers.

The UMortgage transaction provides another example of how that consolidation could develop within the independent mortgage broker channel.

Rather than eliminating the acquired company’s identity, the structure allows UMortgage to maintain its brand and sales organization while shifting significant operational responsibilities onto NEXA’s larger platform.

Casa’s move into NEXA’s leadership also makes the transaction more than an acquisition of mortgage production.

As an executive partner, Casa will become part of the organization that is absorbing the company he has led and built.

The deal follows other expansion moves by NEXA this year as mortgage companies across the country continue positioning themselves for an eventual increase in origination activity.

For mortgage brokerage owners, the transaction could also become an important industry marker.

The mortgage broker channel remains highly fragmented, with thousands of independent businesses carrying their own technology, compliance and operating costs. The economics of remaining completely independent are increasingly being weighed against the benefits of joining larger platforms capable of spreading those expenses across greater production.

The NEXA-UMortgage transaction puts that decision squarely into focus.

UMortgage keeps much of the identity it has built while gaining access to a larger mortgage infrastructure. NEXA gains additional production, people and market presence.

Financial terms were not disclosed.

WRE News will continue following the transaction as additional details become available.