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 finalizes a strategic partnership centered on ValonOS, the AI-native operating system Valon developed for mortgage servicing.

Under the agreement, Carrington adds approximately 810,000 loans to its servicing portfolio and will deploy 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 servicing. Ginnie Mae guarantees securities backed by government-insured loans, including those from the FHA, VA, and USDA programs, making servicing performance in this segment especially sensitive to regulatory and operational requirements.

"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 transaction significantly expands Carrington's servicing platform through Valon's established subservicing relationships and proven asset acquisition capabilities. Together, the combined servicing portfolio is expected to approach approximately two million loans, reinforcing Carrington's position as a premier provider of high-touch mortgage servicing. The deal comes amid a period of consolidation in the U.S. mortgage servicing industry, where scale has become increasingly important for managing compliance costs and operational efficiency. Several of Valon's existing servicing clients are already exploring opportunities to transfer additional servicing portfolios to the combined platform.

Bringing Together Two Industry Leaders

Founded in 2019, Valon Mortgage grew to service approximately 810,000 loans, earning a reputation as one of the industry's fastest-growing mortgage servicers. The acquisition merges Valon's AI-native servicing infrastructure with Carrington's longstanding leadership in government lending and servicing, creating a 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 central factor in Carrington's acquisition strategy. Built on a contemporary cloud-based architecture, ValonOS enables rapid development and innovation across mortgage servicing. The push toward modern servicing platforms reflects a broader industry shift away from legacy systems that have historically limited servicers' ability to adapt quickly to changing borrower needs and regulatory demands. 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 resilience of its long-term business strategy across multiple market cycles. With the addition of Valon Mortgage, Carrington is 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."