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Tax & flood vendor Lereta acquired by private equity firms

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Private equity firms Flexpoint Ford and Vestar Capital Partners have bought Lereta LLC, a provider of real estate tax and flood solutions for mortgage servicers, the companies announced this week. The transaction is expected to close within a month.

Financial details of the transaction were not disclosed.

Lereta’s services are designed to increase efficiency, reduce penalties and liabilities and improve processes for mortgage originators and servicers. The company claims to process over $17 billion in tax payments annually and monitors more than 25 million loans for flood determinations. It has over 4,000 clients, generally smaller lenders from across the U.S. It competes directly with CoreLogic.

Lereta, formerly known as Lenders’ Real Estate Taxes, also offers life-of-loan, basic, and commercial determinations, as well as portfolio reviews.

John Walsh, Lereta’s chief executive officer, will retain his position following the acquisition.

Walsh said the acquisition by Flexpoint and Vestar is “ideal” for Lereta.

“The combination of these two well-regarded firms provides deep experience in financial services and a wealth of knowledge around scaling and enhancing technology, and Lereta has distinguished itself by providing a high level of customer service in our markets,” Walsh said. “As a result, we’ve been successful in adding new customers and building market share. This transaction will enable us to accelerate our already strong growth, step up our investments in technology and scale our operations to address the changing needs of the mortgage servicing industry.”

Flexpoint Ford is a private equity investment firm that has raised more than $5 billion in capital. The company specializes in privately negotiated investments in the financial services and healthcare industries.

“We found that LERETA’s customers really valued its flexibility, attentiveness and white-glove customer service, and LERETA’s planned increase in technology investments will continue to further enhance its customers’ experience,” said Steve Begleiter, Flexpoint Ford managing director.

Vestar Capital Partners has invested $8 billion in 85 companies since 1988.

LERETA announced last December that it acquired the Flood Determinations Solution from Wolters Kluwer Governance, Risk and Compliance for an undisclosed sum, according to reports.

The post Tax & flood vendor Lereta acquired by private equity firms appeared first on HousingWire.

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