LRES Corporation, a California-based REO and valuation services company, has inked a deal to acquire Keystone Asset Management, a REO property management firm that also offers related services.
Terms of the deal, which is due to close on Sept. 1, were not disclosed.
Keystone, headquartered in suburban Philadelphia, claims to have managed $130 billion in real estate as a real estate services provider. Its services include property valuation, REO asset management, property preservation, property tax consulting and home insurance.
Upon closure of the deal, Keystone will operate under the LRES Corporation name.
“Keystone has been a well-known and respected player in the REO/Asset Management business as well as the appraisal and valuation businesses for over twenty years. We know the management team well and have admired their growth, innovation, and resiliency. It was an easy decision to join forces,” Roger Beane, CEO of LRES, said in a press statement.
As rates change and the market shifts to a more purchase-driven origination environment, lenders need to carefully monitor margins and profitability. If we’ve learned anything in the past year, it’s that operational flexibility and accurate servicing valuation are key to lending profitability.
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“Roger and I have talked for a long time about finding a way to align forces,” Jane Hennessy, founder of Keystone, said in the news release. “We are delighted that this acquisition has occurred. LRES brings an additional layer of Tier One delivery capabilities. It is an exciting time for our team.”
Founded in 2001, LRES is among the largest players in the REO asset management and property valuations landscape. The firm promoted Mark Johnson, a former division president of Nationstar Mortgage Holdings (now Mr. Cooper), to president in 2018.
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