SitusAMC Sells Majority Ownership of Insurance Entity to VineLight Ventures

News provided by

Oct 01, 2024, 11:49 ET

NEW YORK, Oct. 1, 2024 /PRNewswire/ -- SitusAMC, the leading provider of services and technology to the commercial and residential real estate finance industry has sold majority ownership of its loan insurance entity, Securent Risk Retention Group Inc. and its related data, brokerage and services business, Risk and Insurance Services, LLC (both entities together, "Securent," the "Company"), to VineLight Ventures, LLC ("VineLight").

The transaction injects Securent with additional equity capital and helps position the Company to grow and meet the rising demand for its products and services, especially in the RMBS market. Justin Vedder will remain as the President of Securent and will continue to lead the day-to-day operations and strategic vision under the new ownership.

VineLight's principals, Bryan Binder and Jason Garmise, have extensive experience in the industry having previously founded and sold CastleLine, a leading provider of mortgage data and insurance products. Mr. Binder and Mr. Garmise also have a long-standing relationship with Mr. Vedder, since their time together at CastleLine. Additionally, critical to the strategic goals of the transaction, SitusAMC will maintain a minority stake in the Company with a seat on the holding company's Board.

Founded in 2021, Securent provides comprehensive risk management, data analytics and insurance programs, protecting mortgage participants including lenders, investors, RMBS issuers, and warehouse lenders against liabilities and losses associated due to errors, omissions, or fraud introduced in the manufacturing process. Securent's insurance policies cover a range of loan structures including securitizations, Fannie & Freddie loans, MSRs, and M&As, and cover a range of defects including:

Underwriting Defects
Compliance Violations
Fraud & Misrepresentation
Appraisal Errors

Through Securent's loan insurance programs, clients are effectively able to (i) mitigate repurchase risk and losses, (ii) expedite transaction timelines and reduce funding costs through increased counterparty confidence, (iii) scale their business through channel and product expansion without taking on new risk, and (iv) increase profitability and reduce enterprise uncertainty by eliminating repurchase risk and losses associated with loan defects.

"Repurchase demands continue to be a material impediment and concern for mortgage company leaders, and fraud related risk will continue to be a challenge throughout the mortgage manufacturing process, especially in RMBS structures. The combination of Securent's proven offering, VineLight's expertise in building businesses, and the additional capital infusion will allow us to grow and continue provide industry leading solutions to the market." – Justin Vedder, President, Securent

"We are excited to partner with both Situs and Securent to provide innovative solutions to the mortgage industry. We are focused on improving our customers' efficiency and profitability and look forward to introducing Securent's newest solutions that we believe will help transform the securitization market. We are also thrilled to be back in business with Justin Vedder, an innovative leader with outstanding relationships and experience in the space." – Bryan Binder

"This transaction, which partners Securent with experienced industry veterans who greatly understand the space, will enable the business to offer a more diverse set of insurance solutions to the industry. We look forward to continuing to work with Securent and maintaining an equity stake in the business." – Michael Franco, Chief Executive Officer, SitusAMC

Parties interested in learning more about Securent should contact Justin Vedder at [email protected].

About SitusAMC
SitusAMC is the leading independent provider of innovative, trusted solutions that support the entire lifecycle of commercial and residential real estate finance, powering more efficient, effective, and agile businesses. For more information, visit www.SitusAMC.com

About VineLight Ventures, LLC.
VineLight is an investment firm focused on unique entrepreneurial opportunities. In addition to capital, VineLight provides strategic guidance, management support, and expert execution to our partner companies. For more information, visit www.vinelight.com

Press Contacts:

Andy Garrett
Head of Marketing, SitusAMC
[email protected]

SOURCE SitusAMC