Corridor Capital has made an investment in Nationwide Property & Appraisal Services, a provider of appraisal management services for residential and commercial property lenders and mortgage originators.
The company’s customers include more than 20,000 loan officers, 400 different lending institutions and 7,500 independent appraisers. Nationwide is led by President Ryan Hernberg and is headquartered near Philadelphia in Gibbsboro, NJ (www.onestopappraisals.com).
Appraisal management companies (AMC) work with lenders and appraisers to facilitate the ordering, tracking, quality control and delivery of appraisal reports. AMCs have been in existence since the 1960s, but in limited numbers when compared to today. In 2009, New York Attorney General Andrew Cuomo, Fannie Mae and Freddie Mac, with support from the Federal Housing Finance Agency, developed a set of appraisal rules called the Home Valuation Code of Conduct (HVCC). The rules were developed to isolate parties with a financial interest in a mortgage loan transaction from appraiser selection and retention. Although no longer in force, HVCC influenced the Appraiser Independence rules now found in The Dodd-Frank Wall Street Reform and Consumer Protection Act. As a result, AMCs have proliferated as many lenders use their services in order to provide strict adherence to Dodd-Frank, Truth in Lending and Interagency Guidelines. Nationwide was the first licensed, independent AMC following the financial crisis in 2009.
“The Nationwide team does great work meeting the rapidly changing and complex needs of the large and constantly evolving mortgage lending industry. As a pioneer in the appraisal management business, we believe the company is ideally suited to be a most trusted partner to the nation’s leading mortgage lenders and highest quality appraisers for all their property and appraisal service needs. We are excited to support the Nationwide team in its pursuit of that goal and share its commitment to the highest standards of service and compliance,” said Corridor CEO, Craig Enenstein.
Corridor Capital makes control investments of $3 million to $12 million in mid-market companies with EBITDAs of $2 million to $5 million. Sectors of interest include specialty manufacturing, business services, and environmental services. Corridor focuses on complex situations, particularly those requiring growth support or operational or financial engagement. The firm’s investor base includes approximately 150 executives across an array of industries and disciplines that the firm uses as an active resource for its portfolio companies and their teams. Corridor Capital is based in Los Angeles (www.corridorcap.com).
© 2016 Private Equity Professional | December 8, 2016