Blend, a leading provider of digital lending software, today announced that it has entered into a definitive agreement with Mr. Cooper Group, Inc. (NASDAQ: COOP) to acquire Title365, a leading provider of title insurance and processing services.
Together, Blend’s technology platform and Title365’s operational expertise in title, escrow and settlement will help financial institutions more efficiently and effectively interact with consumers through a fully integrated property purchase process.
“Since its inception, Blend has been on a mission to create a simpler, more transparent, and more accessible financial services ecosystem that can help more people achieve their financial goals like buying a home,” said Blend Co-Founder and CEO Nima Ghamsari. “Title and billing are manual, time-consuming processes for consumers and lenders. By putting all parties on the same automated platform, we can significantly improve the experience. With an intense focus on its customers and operational efficiency, Title365 is the right addition to help us scale our efforts and make immediate impact in this space. “
Blend’s work to build a single, cloud-based platform for all consumer home purchases began in 2018 with the launch of its home insurance offering and continued in 2020 with the launch of its Blend Close digital deal solution. Many lenders, including US Bank, BMO Harris Bank, First Horizon Bank, and Nationwide Mortgage Bankers, use these products. That acquisition and investment in property, which is a key piece of the home buying puzzle and often plagued by unforeseen complexities, is the next step in completing the journey.
The combined strengths of Blend and Title365 will result in a digital real estate purchase that drives efficiency and cost savings for all parties by integrating ownership and settlement deep into the credit process. New features include a best-in-class closing and settlement experience and a marketplace for title agencies, including TitleVest, that gives lenders and consumers the maximum flexibility and choice. Title365’s services will be integrated with Blend’s cloud-based platform, which already enables better service and a safer workflow for consumers, as well as easier collaboration between lenders, billing teams and consumers on acquisition fees and other critical information.
The Title365 team, which President Kristen Estrella will continue to lead from its offices in the US and India, will move to Blend upon completion of the acquisition.
“Traditionally, buying a home has been riddled with complexities that require many steps and the involvement of third parties. We are excited to work 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 service providers, insurers and others by leveraging our industry expertise to deliver a seamless consumer experience.”
Under the terms of the transaction, Blend will acquire Title365 for approximately $ 422 million, equivalent to an enterprise value of $ 500 million, less an adjustment of approximately $ 31 million and an interest of 9.9 million % that remains from 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.