MCS, the national property services provider founded in 1986, announced that it has entered into an agreement to sell its mortgage services business line (Mortgage Contracting Services), which includes its property preservation services, property inspections and other asset management and maintenance work offerings, to global title and real estate services company Stewart Information Services Corp.
Upon completion of the sale, MCS will continue to operate the MCS Commercial, MCS Residential, and MCS Government Services businesses, along with the associated sub brands of each of those entities. As part of the agreement, Stewart will acquire all MCS operations, processes, and technology that supports mortgage servicers and lenders while MCS will retain all operations, processes and technology related to the MCS Commercial, MCS Residential, and MCS Government Services businesses.
Since its founding, MCS has successfully supported the mortgage servicing industry by providing exceptional property preservation services across the full mortgage lifecycle. The company has grown into a nationally recognized leader in the sector, and over the past 39 years, the company substantially increased the value of the platform through organic growth and key acquisitions such as their recent purchases of property preservation leaders MSI and Five Brothers Asset Management Solutions.
With the company’s property preservation services flourishing and the successful expansion of its suite of comprehensive interior and exterior facility maintenance services into other national sectors such as retail and commercial services, government services and home remodeling, the time was right for MCS to consider selling its mortgage services business line. The sale to Stewart will provide MCS with additional capital while creating flexibility for future growth.
“We are extremely pleased that the market has recognized the strong value of MCS’s mortgage/property preservation business, which has truly established itself as the premier asset in the industry,” said Craig Torrance, CEO of MCS. “MCS is proud of the legacy it has built with this business line, and we strongly believe this will be an ideal strategic acquisition for Stewart. We’re also confident our mortgage services customers will continue to receive the exceptional services MCS has delivered for years under this new ownership.”
Torrance adds, “The remaining MCS businesses will continue to operate under the MCS brand and are well-poised for continued growth.”
“MCS has built a reputation over nearly four decades as an award-winning property services provider, trusted by industry leaders across all markets,” notes Chad Mosley, President of Mortgage Services, MCS. “Our commitment to providing our customers with the highest level of service backed by leading technology-driven solutions has enabled us to protect and preserve communities nationwide. By joining Stewart, we are aligning with a company that is one of the oldest and most respected in the industry and together, we are poised to elevate the mortgage service standards and deliver meaningful impact across the property services industry.”
Andrew Nolan will continue in the role of President, Residential and Commercial for MCS, and will report to CEO Craig Torrance. Nolan states, “The future remains bright for MCS and we anticipate even more growth for both our residential and commercial business lines in the coming years, with new markets, additional services, and improved technology on the horizon.”
“Property Preservation services are critical and necessary for servicers as part of the mortgage lifecycle, and currently a service Stewart does not offer. Bringing MCS Mortgage Contracting Services into the Stewart family of companies broadens our lender and servicer customer base and expands our full suite of services,” said Fred Eppinger, Stewart CEO. “MCS is a well-respected leader in the industry, and our shared vision of providing premier service to all customers makes them a perfect fit for our rapidly growing lender base.”
MCS is currently led by an investor group that includes Littlejohn & Co., Lynstone Holdings, and Neuberger Berman Alternatives Advisers. Drew Greenwood, Managing Director with Littlejohn & Co. adds, “This outcome is a credit to the MCS team, whose leadership and execution have delivered consistently for customers and stakeholders alike. Stewart is a natural fit—a strategic owner with a deep understanding of the industry and a long-term commitment to the people and customers of MCS.”
Macquarie Capital served as the exclusive financial advisor to MCS and Baker Hostetler served as legal representative to MCS in this transaction.
The post MCS Announces Agreement to Sell Mortgage Services Business Line to Stewart first appeared on The MortgagePoint.
