Carrington Mortgage Services is partnering with Valon Technologies in a major servicing and technology deal that will significantly expand Carrington’s footprint in government-backed mortgage servicing while deepening its investment in modern servicing infrastructure.
According to a joint announcement Thursday, Carrington will adopt ValonOS as its core servicing platform as part of a strategic partnership with Valon. The transaction also includes the acquisition of Valon Mortgage, adding approximately 800,000 loans representing roughly $197 billion in unpaid principal balance to Carrington’s servicing platform, according to the companies.
The firms said the partnership aims to modernize the operational complexity associated with Ginnie Mae servicing, an area that has historically relied on fragmented legacy systems and manual compliance workflows.
“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 Carrington Companies. “By combining Carrington's deep expertise in government loan servicing with Valon's AI-native platform, we have the potential to create the most efficient, compliant, and scalable Ginnie Mae servicer in the country.”
ValonOS consolidates servicing workflows, compliance logic, and loan data into a single system designed to reduce manual processes and improve borrower resolution timelines. Carrington said the move is expected to streamline compliance and operational performance across both government and conventional servicing portfolios.
Servicing Footprint
The move substantially increases Carrington’s already sizable servicing presence. Prior to the transaction, the company serviced more than 998,000 loans representing over $211 billion in unpaid principal balance, according to industry reports.
The announcement comes as servicing technology and automation continue emerging as strategic priorities for large independent mortgage banks facing margin pressure, rising servicing complexity, and increasing regulatory scrutiny.
Government servicing has also become increasingly operationally intensive for mortgage companies due to stricter compliance requirements, advancing obligations, and borrower-assistance rules tied to FHA and VA portfolios.
What This Means
The partnership highlights how mortgage servicing technology is becoming a stronger competitive differentiator for independent mortgage banks, particularly in the government lending space, where compliance demands and operational costs continue to rise.
Ginnie Mae servicing has historically required significant manual oversight and fragmented systems, creating pressure on servicers to modernize workflows, borrower communication, and default management processes.
The deal also signals continued industry movement toward AI-driven servicing infrastructure, as lenders and servicers seek to reduce operational costs while managing increasingly complex regulatory requirements.
Broader Expansion Push
For Carrington, the partnership further expands its broader growth strategy, which has accelerated across multiple segments of the mortgage business over the past year.
Last fall, Carrington entered into an agreement to acquire Reliance First Capital from Tiptree Inc., expanding its retail origination footprint and consumer-direct capabilities. Carrington said at the time the acquisition aligned with its long-term strategy to grow market share across lending and servicing operations.
At the same time, the company has continued leaning aggressively into Non-QM lending. In 2025, Carrington enhanced pricing across several Non-QM products, including bank statement and investor programs, as part of an effort to capture more business from self-employed borrowers and non-traditional income segments.
Carrington has repeatedly emphasized Non-QM as a strategic growth area amid ongoing affordability and qualification challenges in the conventional market, while continuing to expand its broader Non-QM infrastructure and leadership team.
For Valon, the transaction represents another major step in its evolution from mortgage operator to servicing technology provider. Valon co-founder and CEO Andrew Wang said the company would now focus entirely on software and infrastructure development.
“By narrowing our focus to building software and enabling the broader industry, we can help solve the massive structural challenges facing mortgage servicing at a much larger scale,” Wang said.
Financial terms of the transaction were not disclosed, and the companies did not provide a closing timeline.
