Non-QM specialist Lendermac acquires Utah's Direct Mortgage

Wholesale and correspondent mortgage firm Lendermac announced it had reached an agreement to acquire Direct Mortgage Corp., the latest deal in the current wave of industry consolidation.

The move aims to bolster the national presence of Cypress, California-based Lendermac and facilitate its efforts to create a scaled multichannel platform that supports future expansion, its parent holding company said. Lendermac operates as the trade name of Bridgeway Lending Partners. 

Specializing in nonqualified mortgages, Lendermac serves partners in wholesale as well as both nondelegated and delegated correspondent channels. It also offers a cloud-based third-party origination platform. 

"This acquisition represents an important step in our long-term growth strategy," Lendermac CEO Kenneth Jo said in a press release. "Direct Mortgage Corp. brings strong operational expertise, an established national presence and a culture aligned with our commitment to service and execution. Together, we are positioned to expand our reach."

The addition of Direct Mortgage brings with it the lender's expertise in conventional and government segments, with the newly acquired company offering a range of products from jumbo to Federal Housing Administration-backed loans. 

Operating in both retail and wholesale channels, Draper, Utah-based Direct originated over 500 loans in 2024 with dollar volume approaching $209 million, according to Home Mortgage Disclosure Act data.

The acquisition is also expected to ease secondary market execution thanks to Direct's agency approvals with Fannie Mae and Freddie Mac as well as Ginnie Mae, the guarantor of government-sponsored loans, Lendermac said. 

Financial terms of the deal were not disclosed. 

Lendermac's growth ambitions

Founded in 2021 in Duluth, Georgia, Lendermac was sold in mid 2025 to its present owner.

The new merger is the latest development for the company in its drive for expansion, arriving after it signed a financing deal with Ares Management's alternative credit team in 2025's fourth quarter. Per terms of that agreement, Ares will purchase a percentage of Lendermac's non-QM originations, with the transactions providing a source of funding for growth efforts and future lending. 

The acquisition of Direct is also the latest in a series of mergers that have occurred in the past several months, as mortgage players continue to consolidate in the face of a stubborn housing market that has originations far off the pace from peak levels earlier this decade. 

In addition to highly publicized mergers of some of the mortgage industry's giants, recent deals have involved lenders, servicers and technology providers of all sizes. 

Among the other small-to-midsize lenders opting to combine forces over the past year include NFM Lending and Homespire Mortgage as well as Reliance First Capital and Carrington Holding Co.