Compliance software provider QuestSoft is buying data verification and audit services firm Investors Mortgage Asset Recovery Co. at a time when lenders are more widely using technology to verify information.
Financial terms of the transaction were not disclosed. The acquisition was structured as an asset purchase with IMARC merged into QuestSoft's operations.
"Combining IMARC's verification and audit services with QuestSoft's compliance software gives lenders a one-stop shop for all of their compliance needs," said Leonard Ryan, founder and president of QuestSoft, in a press release. "IMARC also brings with it a strong tradition of outstanding customer service and a dedication to providing high-quality services quickly and efficiently, blending well with the QuestSoft commitment to our customers."
IMARC will become part of a new unit at QuestSoft that also offers 4506-T tax transcript services and Social Security Administration SSA-89 identity verification, and its staff will move to QuestSoft's headquarters. Bob Simpson, the founder of IMARC, will be senior vice president and director of the new division.
"High-quality products, ease of use and outstanding service are the three pillars that build strong relationships between vendors and lenders," said Simpson, in the press release. "By combining our services with QuestSoft, we have created the best resource for lenders to handle all of their mortgage compliance, verification and audit needs."
There has been growing use of automated verifications to replace more time-consuming manual processes in the mortgage industry for several reasons.
Purchase loans that have tighter timelines have become more prominent and borrowers have grown more interested in filling out mortgage applications and submitting information online.
In addition, the government-sponsored enterprises that buy the majority of U.S. mortgages offer upfront relief from representation and warranties on certain pieces of automatically verified loan information.