mortgage.com to Buy Three Companies
For anyone digging back this far, this was the press release issued by mortgage.com around the purchase of three companies we built from 1989 to 1999, a 10 year span. One day I'll take my mental diaries (or diahhreas) depending on your perspective, and share the whiplash that comes with selling your company into a public offering after 10 years of effort, then watching it fold into a black hole less than 12 months later. It was a wild ride, and the most expensive tuition one might pay for a life time of lessons.
October 11, 1999
mortgage.com to Buy Three Companies
By Clint Boulton
In an effort to enable its business to conduct point-of-sale mortgage offerings on the Net, mortgage.com Monday snagged three financial companies.
Capital Savings Co., BuildNet Inc. and BuildNet Financial are wholly-owned subsidiaries of CSC Holdings LLC from North Carolina.
mortgage.com (MDCM) expects the triple purchase will bulk up its offering of purchase-money mortgages, which accounted for 80 percent of the company's volume last quarter, to homebuilders, Realtors and financial planners.
Purchase-money mortgages are given by the buyer to the seller as part of the purchase consideration. Terms of the deal were not disclosed.
"These acquisitions fit into mortgage.com's key strategy of using the Internet not just directly with consumers but also in a business-to-business fashion with all key participants in the home-buying process," said Seth Werner, chairman, president and CEO of mortgage.com.
Technology-based lender Capital Savings co.secured more than $500 million in mortgages last year. mortgage.com snatched up BuildNet and BuildNet Financial for Net development with loan-origination support for its home-builder base, which is responsible for the construction of nearly one in three U.S. residences.
"This transaction will provide Capital Savings with the technological muscle to expand our reach while opening up new markets for mortgage.com," said Todd Ballenger, chairman of Capital Savings.
