While it's true that compliance is driving up costs across the industry, the growing age of mortgage company owners is a stronger factor in the number of lenders going up for sale.

That's the case for every deal right now that Stratmor Group is the advisor on, said Jeff Babcock, senior partner in charge of the mergers and acquisition practice. While factors such as the inability to gain retail origination scale and having the funds to invest in their compliance infrastructures are part of what is entering into the decision to sell, "in our experience, that's not what's bringing them to the table. It is the age factor," he said.

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