The slowdown in home lending has challenged banks and mortgage brokers over the last year. But it has created opportunities for the firms that offer them advice and technology to improve their operations.
It is those opportunities that helped spur a merger for Teraverde, a financial software and consulting company based in East Hempfield Township Lancaster County.
The company has combined with Stratmor Group, a Denver-based mortgage consulting firm.
“We’re finding business development opportunities are growing at an increasing rate,” said Jim Deitch, co-founder and CEO of Teraverde.
How: The opportunities are coming from banks, credit unions and mortgage brokers looking to get their mortgage origination business back on track, Deitch said.
Mortgage lending has fallen off due to high interest rates and a shortage of homes for sale, he said
Typically, advisory and data analytics work better in a difficult environment because people need to find ways to harness productivity to regain profitability,” he said in an interview with biznewsPA.
Deitch described the combination of the two companies as “a merger of equals” and noted that there is little overlap among their customers.
“It’s a super opportunity for both companies to extend their offerings into our respective client bases,” he said.
How did this start: Leaders of the two companies have known each other for 25 years, Deitch said.
They collaborated last year on a data product called MortgageCX, shorthand for mortgage customer experience. The product helps lenders sharpen their approach to customers.
“It turned out to be one plus one equals four, and that got us talking about what else we could do to help customers,” said Deitch.
What’s next: The Teraverde name will be retired over the summer, Deitch said, while he will become an operating partner with Stratmor.
Stratmor will continue to offer one of Teraverde’s principal products, Coheus, a data management platform for mortgage lenders and other financial services companies.
The background: Teraverde operates remotely but its technical staff is in Lancaster.
Deitch previously co-founded American Home Bank in Lancaster County and now lives in Florida.
American Home Bank, which specialized in mortgage lending, was acquired in 2008 by First National Bank of Chester County.
