Carrington Mortgage Services, LLC (“Carrington”), one of the nation’s largest independent mortgage servicers and a leading specialist in Ginnie Mae servicing, has completed its acquisition of Valon Mortgage, Inc. (“Valon Mortgage”) from Valon Technologies, Inc. (“Valon”). The transaction marks the closing of a strategic partnership built around ValonOS, the AI-native operating system Valon has built for mortgage servicing.

Under the agreement, Carrington acquires Valon Mortgage, expanding Carrington’s servicing portfolio by approximately 810,000 loans and using ValonOS as its core servicing platform. The companies are combining Carrington’s government-servicing expertise and operational scale with Valon’s AI-native technology to advance the next generation of Ginnie Mae.

“The completion of our acquisition of Valon Mortgage marks an important milestone in Carrington’s growth strategy,” said Andrew Taffet, Chief Executive Officer of The Carrington Companies. “After spending more time with ValonOS and seeing how it handles the complexity of government servicing, I am more convinced than ever that it is the right platform for Carrington’s next chapter. This partnership gives us the opportunity to bring greater speed, control and consistency to the borrowers, investors and agencies we serve.”

Strengthening One of the Industry’s Largest Servicing Platforms

The completion of the transaction significantly expands Carrington’s servicing platform through Valon’s established subservicing relationships and proven asset acquisition capabilities. Together, the servicing portfolio is expected to approach approximately two million loans, reinforcing Carrington’s position as a premier provider of high-touch mortgage servicing. The combined platform is already earning the confidence of Valon’s servicing clients, with several exploring opportunities to transfer additional servicing portfolios.

Bringing Together Two Industry Leaders

Valon’s growth has been extraordinary. Founded in 2019, Valon Mortgage has grown to servicing approximately 810,000 loans, earning a reputation as one of the industry’s fastest-growing mortgage servicers. The acquisition combines Valon’s AI-native servicing infrastructure with Carrington’s longstanding leadership in government lending and servicing, creating a servicing platform with a broader range of capabilities and deeper operational expertise for homeowners, investors and institutional clients.

“Valon Mortgage was built to prove that ValonOS could operate at the highest level of complexity in mortgage servicing,” said Andrew Wang, CEO and Co-Founder of Valon. “With the transaction now complete, Valon can focus fully on building the technology infrastructure that powers the broader servicing ecosystem. Carrington’s operating expertise and commitment to ValonOS make this partnership a meaningful step forward for Ginnie Mae servicing and for the teams, customers and partners who made it possible.”

Accelerating Innovation Through Technology

Valon’s modern servicing technology platform was a key factor in Carrington’s acquisition strategy. Built on a contemporary cloud-based architecture, ValonOS enables rapid development and innovation across mortgage servicing. Together, Carrington and Valon expect to accelerate innovation across conventional, Ginnie Mae, 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. “We are proud of what the Valon Mortgage team developed, grateful to the people who made it possible and 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.”

Positioning for Continued Long-Term Growth

Since 2007, Carrington has achieved approximately 16% annualized growth while consistently expanding its servicing portfolio each year, demonstrating the strength of its long-term business strategy across multiple market cycles. With the addition of Valon Mortgage, Carrington is even better positioned to support homeowners, investors, mortgage originators and servicing clients through greater scale, operational excellence and continued investment in technology and customer service.

“Valon Mortgage’s talented team, outstanding reputation, impressive client retention and forward-looking technology made them an ideal fit for Carrington,” said Taffet. “We are excited about the opportunities we will create as we continue building the nation’s premier mortgage servicing organization. Our partnership with Valon is yet another important milestone for The Carrington Companies.”

The Carrington Companies

Carrington is a holding company whose primary businesses include asset management, mortgages and real estate transactions. Collectively, the businesses are fully integrated and provide a broad range of real estate services encompassing nearly all aspects of single-family residential real estate transactions in the United States. To read more, visit: www.carringtonhc.com.

Through its collective associates made up of Carrington leaders and employees, the company’s nonprofit organization, Carrington Charitable Foundation, contributes to the community through causes that reflect the interests of Carrington associates. For more information about Carrington Charitable Foundation, and the organizations and programs it supports through specific fundraising efforts, please visit: carringtoncf.org.

Valon

Valon is building the AI-native operating system for regulated finance in America. Founded in 2019, the company took an unusual approach: rather than selling software into the mortgage industry, it built and ran a full-scale mortgage servicer from the ground up — proving ValonOS could handle one of the most regulated industries in the world before opening the platform to others. Today, ValonOS powers servicing for some of the nation’s largest mortgage institutions, including Rithm Capital’s Newrez, and Valon is extending the platform into adjacent industries. The company has raised more than $290 million from Andreessen Horowitz, WestCap and others. For more information, visit valon.ai.

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