Carrington Mortgage Services and Valon Technologies announced a strategic partnership aimed at advancing next-generation Ginnie Mae mortgage servicing technology through the adoption of ValonOS as Carrington’s core servicing platform.
As part of the transaction, Carrington, alongside a private equity partner, will also acquire Valon Mortgage, expanding Carrington’s servicing portfolio by approximately 800,000 loans.
Carrington is one of the largest independent mortgage servicers in the United States and a major specialist in Ginnie Mae servicing, while Valon develops AI-native operating systems for mortgage servicing and regulated financial operations.
According to the companies, the partnership is designed to combine Carrington’s operational expertise in government mortgage servicing with ValonOS’s AI-native servicing architecture to improve efficiency, compliance, borrower servicing, and workflow management across government and conventional mortgage portfolios.
ValonOS consolidates loan servicing workflows, compliance systems, and loan data management into a unified technology platform intended to replace fragmented legacy systems commonly used throughout the mortgage servicing industry.
Carrington said the acquisition of Valon Mortgage will significantly expand its servicing operations and strengthen its position within the independent mortgage servicing market.
For Valon, the transaction represents a strategic shift toward focusing fully on scaling ValonOS as a technology platform serving the broader mortgage ecosystem rather than directly operating a mortgage servicing business.
Founded in 2019, Valon has raised more than $290 million from investors including Andreessen Horowitz and WestCap. The company said ValonOS currently powers servicing operations for major mortgage institutions including Newrez, which is owned by Rithm Capital.
KEY QUOTES:
“We’ve seen what Valon has accomplished in a remarkably short period of time, and we believe they represent the future of Ginnie Mae servicing technology. Our team evaluated this platform extensively, and came away with a shared conviction: Combining Carrington’s operational depth and government lending expertise with Valon’s technology will produce not just the most sophisticated Ginnie Mae servicer in the country, but the most efficient. That’s the right outcome for our borrowers, our investors and the agencies we serve.”
“Our agreement to incorporate the capabilities of Valon Mortgage into our family of companies adds another key channel for our servicing platform, and builds on the momentum of our recent acquisition of Reliance First Capital. Our partnership with Valon is another important and strategic investment in the future of The Carrington Companies.”
Andrew Taffet, CEO, The Carrington Companies
“Carrington’s depth in Ginnie Mae servicing is exceptional, and their commitment to ValonOS as their core platform made this the most natural path forward. Their expertise will make ValonOS the definitive platform for the most complex corner of the industry, and our technology will give Carrington the infrastructure to do what they already do best, at even greater scale. This is exactly the kind of partnership that makes both companies better.”
Andrew Wang, CEO And Co-Founder, Valon
“We built Valon Mortgage for one reason: to prove that ValonOS works at the highest level of complexity this industry has to offer, and it does. This transaction is structured to let us do what we always intended: go all-in as a technology company. We’re not exiting the mortgage industry. We’re choosing to power it.”
Linda Du, President And Co-Founder, Valon
