Property services company MCS enters reverse mortgage space

Key Takeaways:

– MCS acquired Five Brothers Asset Management Solutions, bringing them into the reverse mortgage industry
– The deal creates a national property preservation and services market leader
– Five Brothers will be integrated into MCS to offer property preservation, maintenance, and renovation services
– Five Brothers has been in business for over 50 years and offers services for the reverse mortgage industry
– Five Brothers expressed enthusiasm to join forces with MCS and continue providing valuable nationwide field services
– The two organizations are aligned in their business philosophy and culture
– Five Brothers provides occupancy verification services for reverse mortgage borrowers
– Borrowers in the FHA’s HECM program are required to remain in their home as their primary residence

HousingWire:

Lewisville, Texas-based property services company MCS announced last week that it acquired Five Brothers Asset Management Solutions, a deal which brings MCS into the reverse mortgage industry for the first time, according to an announcement by the company.

MCS contends that the deal creates “a national property preservation and services market leader that combines complementary business offerings to serve an extensive network of clients in the mortgage services and single-family rental sectors.” It also says that Five Brothers will be integrated into MCS to offer property preservation, maintenance and renovation services.

Five Brothers, headquartered in Warren, Mich., has been in business for more than 50 years and offers regulatory compliant default, rental and real estate-owned (REO) residential and commercial property preservation services. These include services for the reverse mortgage industry, marking MCS’ initial entry into the sector.

Five Brothers expressed enthusiasm “to be joining forces with MCS to continue providing necessary and valuable nationwide field services, advanced technologies and unrivaled reverse/Home Equity Conversion Mortgage (HECM) expertise to its clients,” president and CEO Nickalene Badalamenti-Kalas said in a statement.

“We are bringing together two purpose-driven organizations with common goals and synergies that will continue delivering superior value to clients, while improving communities across the country,” she added. “Five Brothers is proud to join forces with the talented group of professionals within the MCS organization as we are well aligned in our business philosophy and culture.”

According to an entry on the website for the National Reverse Mortgage Lenders Association (NRMLA), Five Brothers is a member that “provide[s] occupancy verification services that help ensure reverse mortgage borrowers are living in their property as a principal residence.”

Borrowers participating in the Federal Housing Administration’s HECM program are required to remain in the home with the lien as their primary residence, and this typically requires an annual verification of occupancy.

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Property Chomp’s Take:

Have you heard the news about MCS acquiring Five Brothers Asset Management Solutions? It’s a big deal that brings MCS into the reverse mortgage industry for the first time! This acquisition creates a national property preservation and services market leader, serving clients in the mortgage services and single-family rental sectors.

Five Brothers, with over 50 years of experience, offers property preservation services for residential and commercial properties, including those in the reverse mortgage industry. This partnership will allow MCS to expand its services to include property preservation, maintenance, and renovation.

Nickalene Badalamenti-Kalas, the president and CEO of Five Brothers, expressed excitement about joining forces with MCS. She highlighted the shared goals and synergies between the two companies, emphasizing their commitment to delivering superior value to clients and improving communities nationwide.

For those unfamiliar with the reverse mortgage industry, Five Brothers provides occupancy verification services to ensure that borrowers are living in their property as their primary residence. This is a crucial requirement for borrowers participating in the FHA’s HECM program, which typically involves annual verification of occupancy.

Overall, this acquisition marks an exciting new chapter for both MCS and Five Brothers as they work together to enhance their offerings and continue serving their clients with excellence. It’s a promising partnership that is sure to make a positive impact in the property services industry.