Carrington and Valon Form Strategic Partnership to Power the Next Generation of Government Servicing

A leading Ginnie Mae servicer selects ValonOS as its core servicing platform as part of a transaction that includes the acquisition of Valon Mortgage.

ORANGE, Calif.--(BUSINESS WIRE)--Carrington Mortgage Services, LLC (“Carrington”), one of the nation’s largest and most sophisticated independent mortgage servicers and a leading specialist in Ginnie Mae servicing, and Valon Technologies, Inc. (“Valon”), which has built a world-class AI-native operating system for mortgage servicing, today announced a strategic partnership to advance the next generation of Ginnie Mae servicing technology and strengthen the foundation of the American Dream. Under the agreement, Carrington will adopt ValonOS as its core servicing platform and, in collaboration with a private equity partner, will acquire Valon Mortgage, Inc. (“Valon Mortgage”), expanding Carrington’s servicing portfolio by approximately 800,000 loans.

The Standard for Ginnie Mae Servicing Technology

Government mortgage servicing is among the most operationally demanding segments of the industry. Agency guidelines, investor reporting requirements and borrower assistance programs carry a level of complexity and regulatory exposure that has historically made the space resistant to modernization. Carrington has spent more than two decades building the processes, controls and institutional knowledge required to service government loans at the highest level of performance and with one of the strongest operational track records in the industry.

This partnership pairs that operational depth with ValonOS’s modern architecture. ValonOS replaces the fragmented legacy tools that have long constrained the industry, consolidating workflows, loan data and compliance logic into a single AI-native system of record. For Carrington, the result is a step change in efficiency – less manual reconciliation, faster borrower resolution and a more streamlined compliance process across its government and conventional portfolios.

“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,” said Andrew Taffet, CEO of The Carrington Companies. “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."

The partnership is designed to be genuinely collaborative. Carrington’s expertise will directly shape how ValonOS supports Ginnie Mae workflows, agency reporting and the loss mitigation programs that define government servicing – refining the platform through real-world operations at the highest standard.

“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,” said Andrew Wang, CEO and Co-Founder of Valon. “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.”

Expanding Carrington’s Portfolio

The acquisition of Valon Mortgage adds approximately 800,000 loans to Carrington’s servicing book, meaningfully expanding its portfolio and reinforcing its position as one of the nation's premier independent servicers. Carrington has been seeking to grow its servicing platform as it sees an opportunity to offer its capabilities to a broader set of mortgage owners and investors. As mortgage servicing becomes more complex, subservicing relationships allow owners and investors in mortgages to hire companies such as Carrington to handle the daily administration of loans – from payment collection and escrow management to the borrower experience.

Valon’s Next Chapter

For Valon, the transaction marks the culmination of a strategy that has been consistent since the company's founding: build a mortgage servicer to prove the technology, then scale the platform to power the industry. With ValonOS now operating at scale across conventional and government portfolios, Valon is turning its full focus to what it was always designed to become: a technology company serving the broader mortgage ecosystem.

“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,” said Linda Du, President and Co-Founder of Valon. “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.”

“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,” said Taffet. “Our partnership with Valon is another important and strategic investment in the future of The Carrington Companies.”

The Carrington Companies

Carrington is a holding company whose primary businesses include asset management, mortgages and real estate transactions. Collectively, the businesses are fully integrated, and provide a broad range of real estate services encompassing nearly all aspects of single-family residential real estate transactions in the United States. To read more, visit: www.carringtonhc.com.

Through its collective associates made up of Carrington leaders and employees, the company’s nonprofit organization, Carrington Charitable Foundation, contributes to the community through causes that reflect the interests of Carrington associates. For more information about Carrington Charitable Foundation, and the organizations and programs it supports through specific fundraising efforts, please visit: carringtoncf.org.

Valon

Valon is building the AI-native operating system for regulated finance in America. Founded in 2019, the company took an unusual approach: rather than selling software into the mortgage industry, it built and ran a full-scale mortgage servicer from the ground up — proving ValonOS could handle one of the most regulated industries in the world before opening the platform to others. Today, ValonOS powers servicing for some of the nation's largest mortgage institutions, including Rithm Capital's Newrez, and Valon is extending the platform into adjacent industries. The company has raised more than $290 million from Andreessen Horowitz, WestCap and others. For more information, visit valon.ai.