Calculated Risk Analytics LLC announced Tuesday that the acquisition of Delaware Corporation Castle Holdings and its subsidiary Castle Mortgage has been completed.
Calculated Risk Analytics, a traditional non-QM lender, will rename Castle under the name Excelerate Capital. This will help the company grow its presence.
Excelerate is based in Newport Beach, California with offices in Hawaii and Arizona. It is licensed in eight states and finances loans through both retail and wholesale channels.
Castle is headquartered in San Diego with offices in Arizona and Nevada. It is licensed in Washington, DC and all but four states: Alaska, Massachusetts, Montana, and New York.
Other terms of the transaction were not disclosed.
Acquisitions have accelerated as the conventional credit boom makes larger, more scalable operations more attractive. Since forecasts predict a possible burnout in refinancing, the less interest-sensitive non-QM market is attractive to those who are familiar with credit risk.
"We will have the opportunity to build a nationwide presence as a future-oriented, entrepreneurial company that offers both non-QM and QM financing," said Excelerate President Thomas Yoon in a press release.
California, where the two companies are based, is a hot market for non-QM loans. According to an analysis by Standard & Poor's last May, nearly half of those in the securitized market are concentrated there.
"Castle Mortgage is an ideal strategic solution for Excelerate and we are excited to have you team up with us," said Mike Thompson, co-founder, chairman and executive member of Excelerate, in a press release from the federal agency's leadership team . "