Carrington Mortgage Services, LLC has announced its acquisition of Valon Mortgage, Inc. from Valon Technologies, Inc., marking the close of a strategic partnership built around ValonOS, the AI-native operating system Valon has built for mortgage servicing.
According to a release, under the agreement, Carrington expands its servicing portfolio by approximately 810,000 loans and will use ValonOS as its core servicing platform. The companies are combining Carrington’s government-servicing expertise and operational scale with Valon’s AI-native technology to advance the next generation of Ginnie Mae, Carrington notes.
“The completion of our acquisition of Valon Mortgage marks an important milestone in Carrington’s growth strategy,” said Andrew Taffet, chief executive officer of The Carrington Companies. “After spending more time with ValonOS and seeing how it handles the complexity of government servicing, I am more convinced than ever that it is the right platform for Carrington’s next chapter. This partnership gives us the opportunity to bring greater speed, control and consistency to the borrowers, investors and agencies we serve.”
Carrington says the completion of the transaction significantly expands its servicing platform through Valon’s established subservicing relationships and asset acquisition capabilities. Together, the servicing portfolio is expected to approach approximately two million loans, Carrington says, with the combined platform already earning the confidence of Valon’s servicing clients, with several exploring opportunities to transfer additional servicing portfolios.
The companies note the acquisition combines Valon’s AI-native servicing infrastructure with Carrington’s longstanding leadership in government lending and servicing, creating a servicing platform with a broader range of capabilities and deeper operational expertise for homeowners, investors and institutional clients.
“Valon Mortgage was built to prove that ValonOS could operate at the highest level of complexity in mortgage servicing,” said Andrew Wang, CEO and co-founder of Valon. “With the transaction now complete, Valon can focus fully on building the technology infrastructure that powers the broader servicing ecosystem. Carrington’s operating expertise and commitment to ValonOS make this partnership a meaningful step forward for Ginnie Mae servicing and for the teams, customers and partners who made it possible.”
Built on a contemporary cloud-based architecture, the release notes that ValonOS enables rapid development and innovation across mortgage servicing. Together, Carrington and Valon expect to accelerate innovation across conventional, Ginnie Mae, non-QM, private-label securities and closed-end second-lien products.
“This is what we set out to build from the beginning: Operate a mortgage servicer, prove the technology in production and then scale that technology beyond our own servicing operation,” said Linda Du, president and co-founder of Valon. “We are proud of what the Valon Mortgage team developed, grateful to the people who made it possible and excited for their next chapter within Carrington. We are equally excited to continue our partnership with Carrington as we bring ValonOS to market and help improve the experience for the homeowners who most rely on government servicing.”
According to the release, since 2007, Carrington has achieved approximately 16% annualized growth while consistently expanding its servicing portfolio each year, demonstrating the strength of its long-term business strategy across multiple market cycles. With the addition of Valon Mortgage, Carrington says it is even better positioned to support homeowners, investors, mortgage originators and servicing clients through greater scale, operational excellence and continued investment in technology and customer service.
“Valon Mortgage’s talented team, outstanding reputation, impressive client retention and forward-looking technology made them an ideal fit for Carrington,” said Taffet. “We are excited about the opportunities we will create as we continue building the nation’s premier mortgage servicing organization. Our partnership with Valon is yet another important milestone for The Carrington Companies.”
To read more, visit: www.carringtonhc.com.
