Carrington completes Valon Mortgage acquisition, adopts new servicing platform

Carrington Mortgage Services has officially completed its acquisition of Valon Mortgage, but the deal’s most significant impact may be what comes next.

The Ginnie Mae loan servicing specialist said Tuesday it will adopt ValonOS as its core servicing platform, marking a major technology overhaul for one of the nation’s largest independent mortgage servicers.

With the addition of Valon’s established subservicing relationships, Carrington will add approximately 810,000 loans to its servicing portfolio, bringing its total to nearly 2 million loans. That would place Carrington among the top servicers in the U.S.

Andrew Taffet, CEO of The Carrington Companies, said the acquisition marks an important milestone in the company’s growth strategy. After spending time with ValonOS and seeing how it handles complex government servicing, Taffet said he is “more convinced than ever that it is the right platform” for Carrington.

“This partnership gives us the opportunity to bring greater speed, control and consistency to the borrowers, investors and agencies we serve,” he added.

The acquisition also shifts Valon’s role from operating its own servicing business to supplying the technology behind other servicing operations.

Founded in 2019, Valon built an AI-native servicing infrastructure and became one of the industry’s fastest-growing mortgage servicers. Andrew Wang, its CEO and co-founder, said Valon was built to prove that its core servicing platform “could operate at the highest level of complexity in mortgage servicing.”

With the transaction completed, Wang said Valon “can focus fully on building the technology infrastructure that powers the broader servicing ecosystem.”

Together, Carrington and Valon said they expect to accelerate innovation across conventional, Ginnie Mae, non-qualified mortgage (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. She thanked the Valon team and said she is 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,” Du said.

The companies had announced the deal in May.