LAS VEGAS-Mortgage lending CUSO Prime Alliance has acquired technology partner Dexma in a deal announced last week during the Auto & Mortgage Lending Symposium Prime Alliance co-hosted here with Credit Union Direct Lending (CUDL).
The new combined company will be known as Prime Alliance Solutions, Joe Brancucci, chairman and CEO of Prime Alliance, told Credit Union Journal during an interview at the Auto & Mortgage Lending Syposium. In an interesting twist, Brancucci noted that Dexma originally helped to create Tukwila, Wash.-based Prime Alliance, lending a certain amount of irony to the maneuver.
"It is like a child is swallowing up one of its parents," Brancucci said with a laugh. "I think it is a good move for a lot of reasons. We were ahead of our time in 2001, but today there are lots of opportunities."
According to Brancucci, Prime Alliance has worked closely with Edina, Minn.-based Dexma over the past decade in creating new solutions for mortgage lending, so there has long been a strong working relationship between the two companies. But the acquisition, he explained, will allow the CUSO to take "ownership and leadership" of the technology Dexma produces.
"We've always been part of the dialog, and have driven the development of a lot of aspects, but this takes the relationship to a new level," Brancucci explained
Prime Alliance and Dexma co-developed the Mortgage Lending Suite, which includes retail lending, third-party lending, loan fulfillment and secondary market centers. The two said they combine to handle 35% of credit union mortgage originations.
Dexma said more than 1,400 lending institutions use its lending platform, including credit unions and community banks, mortgage insurance companies and large lending institutions. Its clients include U.S. Bank Home Mortgage, Weichert Financial Services and MetLife Home Loans.
Since its inception, more than 6 million loans have been processed on the Dexma platform, totaling approximately $1.1 trillion in loan volume, according to the company.
The combination is expected to be complete later this year, according to Prime Alliance and Dexma.