Covius Holdings has entered into a definitive asset purchase agreement to acquire certain businesses from Chronos Solutions, including its credit, flood, income and tax verification services, government services, REO management and disposition, online foreclosure auction and homeowners association (HOA) tracking units.
These businesses will complement Covius’ offerings in document management, loan modification and loss mitigation, title, compliance management, lien tracking, valuations, due diligence and business process workflow services. When the transaction has closed, the combined company will have a broad range of products spanning the mortgage, real estate and financial services lifecycle and a customer base of more than 5,500 clients. Under the purchase agreement, Covius will acquire a host of critical capabilities, including: Credit reporting and modeling; borrower verification services; flood determinations; appraisal review technology; lien release and tax tracking; HOA risk mitigation services; government services; REO asset management and disposition services; and online foreclosure auction services.
“For the past 18 months, we have been rigorously executing a strategic plan to invest in technology-enabled services, while divesting our private-label fulfillment operation,” said Rob Clements, chairman and chief executive officer of Covius Holdings. “Combined with New Residential Investment Corp.’s recent agreement to make an investment in Covius, this acquisition further expands the critical services that Covius can digitally deliver across the mortgage ecosystem and deepens our product offerings.”
Chronos’ key senior management and operating team members will be joining Covius as part of the transaction.
“The acquisition by Covius is a natural fit for the Chronos set of businesses and represents an exciting opportunity to join a growing company with a strong financial position and diverse client base,” said Mark Hikel, chief executive officer of Chronos Solutions. “We could not be more excited about this new partnership and what it will mean for our clients and employees.”