HOUSTON – Stewart Information Services Corp (STC.N) said on Tuesday its subsidiary, SISCO Holdings, LLC, has agreed to acquire the mortgage services division of Mortgage Contracting Services (MCS) for $330 million in cash.
The deal will allow Stewart, a title insurance and real estate services company, to expand its offerings to mortgage lenders and servicers by adding property preservation and default servicing capabilities.
Property preservation services include property inspections, maintenance, and securing properties, which are critical functions for lenders managing foreclosed or vacant homes.
“This acquisition confirms our dedication to bettering our lender services and allows us to introduce our products and services to a broader audience of customers,” said Stewart CEO Fred Eppinger.
The acquisition is the latest move by Stewart to build out its Stewart Lender Services division, which provides technology and services for the mortgage origination and underwriting process.
“With MCS we are adding another complementary and core capability that’s critical to the mortgage ecosystem,” said Beth Fowler, President of Stewart Lender Services.
MCS, which has been in business for nearly four decades, will operate as a standalone company within Stewart following the acquisition. The company’s president, Chad Mosley, said aligning with Stewart would help “elevate the mortgage service standards” across the industry.
The transaction, which is expected to close before the end of the year, is subject to regulatory approvals and customary closing conditions. Stewart said it will fund the purchase with available company resources and expects the deal to be immediately accretive to earnings.
Macquarie Capital served as the exclusive financial advisor to MCS, while Troutman Pepper Locke acted as outside counsel to Stewart.