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Texas-based independent mortgage bank Thrive Mortgage <\/strong>has signed a letter of intent to acquire the Ohio-based lender American Mortgage Service Company<\/strong> (AMSC). <\/p>\n Financial terms of the deal were not disclosed.<\/p>\n The acquisition will strengthen Thrive\u2019s retail channel and bring with it new territories amidst arguably the most challenging mortgage market<\/a> since the early 1980s.\u00a0\u00a0<\/p>\n Thrive\u2019s chief operations officer Selene Kellam<\/a>, who designed the lender\u2019s operations workflow, will be the chief executive officer starting in 2023. Thrive co-founder Roy Jones will move to a chairmanship role.\u00a0<\/p>\n \u201cWe have never had a stated goal of being the biggest mortgage lender,\u201d Randell Gillespie, Thrive\u2019s national sales manager, said in an interview. \u201cWe are continually seeking opportunities for partnerships to help us lead our industry into the next generation of mortgage lending.\u201d <\/p>\n Both companies generate the vast majority of their origination volume through the retail channel and expect to expand their loan offerings by combining their businesses, executives said.\u00a0<\/p>\n Founded in 2011 in Georgetown, Texas, Thrive originated $2.3 billion in loans over the past 12 months, 90% of it through the retail channel, according to data on mortgage tech platform Modex<\/strong><\/a>. Thrive has 60 branches and 258 active loan officers, the data shows.<\/p>\n The AMSC acquisition will allow Thrive to expand into areas where it lacks a brick-and-mortar presence.<\/p>\n AMSC is significantly smaller than its Texas-based dance partner. Founded in 1975 in Cincinnati, AMSC originated $836 million in mortgages over the last 12 months. It has 26 branches and 95 active LOs, Modex data shows. <\/p>\n For AMSC, the deal enables access to Thrive\u2019s technologies and structure in a challenging market, which, by some estimates, could shrink in half in 2023. <\/p>\n Neither company is struggling or has to execute a deal quickly, Bill Case, AMSC\u2019s CEO, said in an interview with HousingWire. It\u2019s just a smart deal for both parties, he said.<\/p>\n And while he conceded that this has not been a \u201cgreat\u201d year, \u201cWe\u2019ve not had great years in the past,\u201d Case said. <\/p>\n \u201cWe keep our company well capitalized. The deal is more about where we see ourselves in a year or two. We agreed that we don’t have tools and technology. We could get all the stuff that Thrive has, but it would take about many millions, in many years.\u201d <\/p>\n The companies expect the transaction to close in the fourth quarter of 2022. The acquired lender will operate as \u201cAmerican Mortgage Service Company, powered by Thrive.\u201d<\/p>\n Veritex Holdings<\/strong>, the parent company of Veritex Community Bank<\/strong>, in 2021 acquired<\/a> a 49% stake in Thrive Mortgage for $53.9 million<\/a>.<\/p>\n The post Thrive Mortgage to acquire American Mortgage Service Company<\/a> appeared first on HousingWire<\/a>.<\/p>\n