Richey May buys business intelligence firm Amata Solutions
Financial consultancy Richey May has purchased mortgage business analytics provider Amata Solutions in a deal that will help the acquiring company further build out the technology-consulting division it started last year.
Benjamin Duke, Amata Solutions' founder, will become the executive director of data analytics within Richey May's technology unit as a result of the transaction.
Richey May did not disclose the terms of the deal, but noted that the acquisition came just three months after it acquired an unspecified interest in Amata. The two companies previously had a business partnership.
"We were confident that our clients would love Amata Solutions when we partnered with the firm three months ago, but we may have underestimated how much," Ken Richey, co-founder and partner at Richey May, said in a press release. "This acquisition puts Richey May in a perfect position to help mortgage lenders address tighter margins and lower volume."
Amata's services, which include the creation of predictive models aimed at estimating future profits and staffing needs, are paired with Richey May's peer-group benchmarking tool.
The profits mortgage lenders were able to generate per loan through the first three quarters of last year on average were one-third of what they were in 2017, according to a recent Richey May report.
Mortgage originations declined in 2018 from 2017, but are expected to stabilize this year, according to Fannie Mae's latest housing forecast.
Richey May acquired two other technology companies in the past year: Arrow Partnership and Corporate Blue. Both of these companies provide information-technology consulting services.