Class Valuation buys reverse mortgage AMC Landmark Network
Class Valuation, a Troy, Mich.-based appraisal management company, has acquired Landmark Network, which specializes in providing valuation services for reverse mortgages.
Terms of the deal were not disclosed.
"As we continue to execute our innovation strategy, we will take great interest in those firms that excel in service and reputation in markets we believe in," said Class Valuation CEO Michael Detwiler in a press release. "With an impressive list of clients, including a meaningful percentage of the industry's top reverse mortgage lenders, Landmark has done a fantastic job delivering quality, service, and reverse valuation products backed by innovative technology. That's the kind of specialization and expertise we're seeking as we continue to expand our footprint."
Detwiler has personal experience with reverse mortgages as his grandmother needed to get one of these loans "before they were mainstream and there wasn't a product for her." But that made him a "big supporter of that business generally, since my days at Mortgage Cadence," he said in a follow-up interview.
"It's the classic we like the niche, we like the products, we like the people, we like the clients, so it's a good thing for us to join forces," he said.
Erik Richard, the former CEO of Van Nuys, Calif.-based Landmark, is joining Class Valuation as its chief operating officer of the company's Western region.
"There is no doubt that [the reverse mortgage] market will continue to grow and that lenders will require our services," Richard said in the press release.
Senior home equity grew to $6.97 trillion in the third quarter from $6.87 trillion in the second quarter and $6.46 trillion one year prior, according to the National Reverse Mortgage Lenders Association.
"At a time when we're seeing stock market volatility and the potential for a mild recession in the near future, it's the perfect time for families to gather and take stock of their retirement resources and make necessary adjustments to ensure continued financial security," NRMLA President and CEO Peter Bell said in a separate press release. "Housing wealth should be considered with other financial assets."
Detwiler is a recent addition to the management team at Class Valuation, joining the company on Dec. 13 as an equity partner and CEO.
Most recently, he was senior managing director at Accenture. Detwiler was the co-founder and CEO of loan origination system provider Mortgage Cadence, which Accenture purchased in 2013.