JZZ Technologies acquires Oxygen Mortgage
JZZ Technologies is a small, publicly traded technology company that is looking to acquire Colorado-based Oxygen Mortgage. Egeland will be heading the real estate division of the New York-based tech company. Initial plans were to form a joint venture between the two companies. However, it became clear that an acquisition was more sensible. Egeland stated that JZZ is currently being restructured. “Though they had previously been focused on data and data management they have decided to add a real estate division. My small company will be rolled up into this company and we’ll grow something really great. Egeland’s “small but mighty” team of loan officers will have access JZZ’s vast database of clients. This will allow them to get more purchase business. It is also planned to partner with home builders to offer mortgage products to people looking to purchase newly built homes. Oxygen Mortgage currently has licenses in seven states. However, plans are to expand into 18 additional states this year. STRATMOR Group predicts that 60 transactions will be completed in 2023, and more than 42 in 2022. A few mortgage companies, including American Pacific Mortgage (Guild Mortgage), Union Home Mortgage, Mutual of Omaha, Mutual of Omaha, Prosperity Home Mortgage, and Union Home Mortgage, have announced that they have purchased other non-bank players since the beginning of this year. CoreLogic is one of the tech vendors that has made moves to acquire other players. Many of these companies have found that acquiring other companies in a down market is a good business strategy to increase market share and expand their coverage area. These lenders will be able to do business in more areas of the country once the market recovers.