Assurant Specialty Property, a provider of insurance services for mortgage lenders, property managers, financial institutions, manufactured home sellers and their customers, announced the expansion of its risk management offerings for the mortgage industry Sept. 4 with the acquisition of eMortgage Logic LLC, a national provider of residential valuation products and valuation technology services.
As part of the deal, Assurant also will acquire eMortgage Logic’s subsidiary, Axios Valuation Services.
eMortgage Logic is a leading provider of broker price opinions, property appraisals, regulatory and compliance services, valuation technology and local market analytics.
Assurant bought eMortgage Logic in a cash transaction for an initial payment of $17 million, with a possible earnout payment based on future performance.
“This acquisition builds on our core strengths in serving the mortgage industry,” Assurant President and CEO Gene Mergelmeyer said. “More than ever, we can serve mortgage originators, servicers and capital markets investors with a comprehensive suite of risk management solutions, from insurance to valuation to property preservation. eMortgage Logic augments our existing offerings and supports our business strategy as we work to provide end-to-end services to mortgage and lending institutions.”
Based in North Richland Hills, Texas, and founded in 2002, eMortgage Logic is expected to generate approximately $35 million annually in fee income from mortgage servicing and capital markets customers. The business will remain under the leadership of co-founder and CEO Ralph Sells, and retain its brand name.
“We’re thrilled to join Assurant, a leader in risk management for the mortgage industry and a Fortune 500 company with a strong financial foundation,” Sells said. “In this dynamic environment, local market valuation is a vital part of managing risk. We look forward to the opportunities created by this combination, which will enable us to better serve our clients’ evolving needs.”