SAN FRANCISCO, March 15, 2021 /PRNewswire/ -- Blend, a leader in digital lending software, today announced it has entered into a definitive agreement with Mr. Cooper Group, Inc. (NASDAQ: COOP) to acquire Title365, a top provider of title insurance and settlement services. Together, Blend's technology platform and Title365's operational expertise in title, escrow, and settlement will help financial institutions more efficiently and effectively engage with consumers across a fully integrated homebuying journey.
"Since its inception, Blend has been on a mission to create a simpler, more transparent, more accessible financial services ecosystem with the power to help more people reach their financial goals, like purchasing a home," said Blend Co-founder and CEO Nima Ghamsari. "Title and settlement are manual, time-consuming processes for consumers and lenders, and by bringing all parties into the same automated platform we can vastly improve the experience. With an intense focus on its customers and operational efficiency, Title365 is the right match to help us scale our efforts and make an immediate impact in that space."
Blend's work to build a single, cloud-based platform to power the full consumer homebuying journey began in 2018 with the launch of its homeowner's insurance offering, and continued in 2020 with the launch of its digital closing solution, Blend Close. Many lenders, including U.S. Bank, BMO Harris Bank, First Horizon Bank, and Nationwide Mortgage Bankers, are taking advantage of these products. This acquisition and the investment in title, which is a key piece of the homebuying puzzle, and often plagued by unforeseen complexity, is the next step toward completing the journey.
Blend and Title365's combined strengths will result in a digital homebuying journey that drives efficiency and cost savings for all parties by deeply integrating title and settlement into the loan process. The new capabilities will include a best-in-class closing and settlement experience and a marketplace of title agencies, including TitleVest, supplying lenders and consumers with maximum flexibility and choice. Title365's services will be integrated with Blend's cloud-based platform, which already enables better service and a more secure workflow for consumers along with easier collaboration among lenders, settlement teams, and consumers on closing fees and other critical information.
The Title365 team, which President Kristen Estrella will continue to lead across its U.S. and India offices, will join Blend once the acquisition closes.
"Traditionally, purchasing a home has been riddled with various complexities, requiring many steps and third-party participants. We're thrilled to be joining forces with Blend to continue the great work Title365 has already done," said Estrella. "Together we have the power to simplify the process for real estate agents, lenders and servicers, insurers, and others, by leveraging our industry expertise to offer a seamless experience for consumers."
Pursuant to the terms of the transaction, Blend will acquire Title365 for approximately $422 million, reflecting an enterprise value of $500 million, less approximately $31 million in adjustments, and reflecting a 9.9% ownership interest retained by Mr. Cooper Group. The transaction is subject to regulatory approvals and customary closing conditions and is expected to close in the second quarter of 2021.
Advisors Goldman Sachs & Co. LLC is serving as Blend's financial advisor, with Latham & Watkins, LLP serving as legal advisor, Greenberg Traurig LLP and Weiner Brodsky Kider PC serving as regulatory counsel, and funds managed by Owl Rock Capital providing financing.
About Blend Blend helps lenders streamline the customer journey for any banking product from application to close. Its Digital Lending Platform is used by Wells Fargo, U.S. Bank, and over 285 other leading financial institutions to acquire more customers, increase productivity, and deepen customer relationships. The company enables customers to process more than $4 billion in mortgages and consumer loans per day, helping millions of consumers get into homes and gain access to the capital they need to lead better lives. To learn more, visit blend.com.
About Title365 Title365 is a national title insurance and settlement services provider, founded in 2009 on a commitment to deliver industry-changing solutions for faster turnaround of title, escrow and default services. Title365 is a division of Xome, a real estate services company providing integrated end to end solutions designed to solve the unique business challenges faced by mortgage servicers and lenders. Xome leverages data exchange capabilities and operational expertise across Title, Valuations, Auction and Field Services to provide intelligent recommendations throughout the entire real estate and loan lifecycle. For additional information, please visit Title365's website at www.title365.com or www.xomesolutions.com.
About Mr. Cooper Mr. Cooper Group Inc. (NASDAQ: COOP) provides quality servicing, origination and transaction-based services related principally to single-family residences throughout the United States with operations under its primary brands: Mr. Cooper® and Xome®. Mr. Cooper is one of the largest home loan servicers in the country focused on delivering a variety of servicing and lending products, services and technologies. For more information, visit www.mrcoopergroup.com.