Xalles Holdings Inc.
, a business development company focused on the fintech and blockchain sectors, has acquired LYC Mortgage LLC
, a Westwood, Mass.-headquartered multistate licensed mortgage lender.
The financial terms of the acquisition were not disclosed. LYC Mortgage will become a subsidiary of Xalles Financial Services Inc., which itself is a wholly owned subsidiary of Xalles Holdings. LYC Mortgage and its DBA, BuyUSDA, is a licensed retail direct lender for conventional, FHA and USDA mortgages in Massachusetts, Connecticut, South Carolina, Texas and California.
“We are excited to be adding the professional LYC management team to the growing Xalles team,” said Thomas Nash, CEO of the Washington, D.C.-based Xalles Holdings. “Through Xalles Financial Services, we have a unique opportunity to bring innovative loan and mortgage solutions to consumers through the new LYC Mortgage subsidiary. Our other family of companies in the consumer commerce and payments areas will open up new business development and referral channels for LYC Mortgage.”
Moody’s issued a report determining the potential impact that blockchain technology could have on the mortgage industry, including the potential for the technology to “streamline key mortgage processes, eliminate redundancies and reduce costs
” between 10 and 20 percent, with an annual savings estimated between $840 million and $1.7 billion. In June, Propy Inc., a blockchain start-up, announced that Second Century Ventures (SCV), a real estate technology fund backed by the National Association of Realtors (NAR), made a strategic investment
in Propy’s proptech platform.
“We are pleased to be completing this transaction and see the obvious synergies between LYC’s plans and the various ways in which Xalles can assist our business,” said Richard Lee, Managing Member of LYC Mortgage. “We look forward to enhancing our strong systems infrastructure through some of Xalles’ Blockchain applications and we know that the public company fundraising initiatives underway will enable LYC Mortgage to expand rapidly throughout the next year.”