Lower, Thrive strike merger deal

National multichannel lender Lower will acquire Thrive Mortgage in the second merger deal for the Columbus, Ohio-based company over the past three months.

Financial terms of the transaction were not disclosed, with the deal expected to close in the first quarter of 2024. Per terms of the agreement, Thrive Mortgage's current CEO Selene Kellam and chief production officer Randell Gillespie, will join the Lower executive team, reporting to its head, Dan Snyder.

"The commitment of Thrive to our team and our customers has always been to deliver the best mortgage experience with the highest quality resources" said Thrive Mortgage Chairman Roy Jones, in a press release. "This has driven us to focus on having the best people with the most forward-thinking technology in the i­­­ndustry, all of which is propelled forward with this partnership with Lower."

The partnership between Georgetown, Texas-based Thrive and Lower combines two lenders with similar volumes of production. In the past year, Thrive originated close to $1.42 billion worth of loans, while Lower produced $1.88 million according to data from Modex. 

Founded in 2001 and formerly known as Georgetown Mortgage before rebranding in 2018, Thrive is currently licensed in 42 states. Meanwhile, Lower operates in 46 states and the District of Columbia under several different brand names.

The deal is the latest in a series of mergers and acquisitions announced over the past two years, a trend that was largely anticipated as origination volumes slowed from the pandemic-induced boom of 2021. Both Lower and Thrive have been among the acquirers during that period, folding other lenders into their networks.

In September 2022, Thrive purchased Ohio-based American Mortgage Service Co. as it sought to expand its national footprint. Lower has been involved in multiple transactions since early 2022, with its most recent deal struck in the third quarter this year — an acquisition of Denver-based Universal Lending.

In the past several months, Lower has also turned its attention toward technology offerings, including the rollout of a mortgage-as-a-service product, and partnerships with real estate businesses such as Opendoor. In addition to online and retail lending, the company also has a third-party origination channel and recently appointed a new chief growth officer. 

As has been the case in several other Lower acquisitions, Thrive will continue to operate as its own branded unit within the family of companies. 

"We're building a better approach to mortgage with Lower's streamlined tech powering multiple channels," said CEO Dan Snyder in a press release. "Thrive is an award-winning, national lender with the same belief, and we're excited to bring them onto our platform."