Xalles Holdings to Acquire LYC Mortgage
WASHINGTON, DC and WESTWOOD, MA, July 12, 2019 (GLOBE NEWSWIRE) -- via NEWMEDIAWIRE – Xalles Holdings Inc. (OTC: XALL), a company focusing on accelerating fintech companies, leveraging blockchain technology for financial reconciliation, and payment auditing solutions, today announces the execution of the Share Purchase Agreement to acquire LYC Mortgage, LLC, a 15 year old, multi-state licensed mortgage lender.
Under the agreement, LYC Mortgage, LLC will become a subsidiary of Xalles Financial Services Inc., which is a wholly owned subsidiary under Xalles Holdings Inc. LYC Mortgage looks to expand its lending capabilities through the Xalles acquisition by adding scalable technology solutions to complement its existing innovative offerings.
LYC Mortgage, LLC and its DBA, BuyUSDA is a licensed retail Direct Lender for USDA, FHA and Conventional Mortgages in MA, CT, SC, TX and CA. LYC Mortgage plans to expand its business footprint into other states and increase revenue through the acquisition of other existing non-delegated mortgage companies.
As part of this acquisition, Xalles is acquiring a company in LYC Mortgage with an experienced management team, audited financial statements, the liquidity and net worth in excess of $1,000,000 necessary for delegated lender operations. LYC Mortgage has built the infrastructure to operate as a large company, and given its Direct Lender status on Conforming, FHA and USDA mortgage products, the company can underwrite, close and fund those loans independently. As a Direct Lender, LYC Mortgage earns larger profit margins on mortgage products than the brokers or correspondent lenders will be acquiring.
The Xalles team plans to utilize some of its fundraising for the expansion of LYC Mortgage’s footprint in terms of acquisitions and new technology. Xalles will also help to create new organic growth for LYC through its growing independent sales network.
“We are excited to be adding the professional LYC management team to the growing Xalles team,” stated Thomas Nash, Xalles Holdings CEO. He added, “Through Xalles Financial Services, we have a unique opportunity to bring innovative loan and mortgage solutions to consumers through the new LYC Mortgage subsidiary. Our other family of companies in the consumer commerce and payments areas will open up new business development and referral channels for LYC Mortgage.”
“We are pleased to be completing this transaction and see the obvious synergies between LYC’s plans and the various ways in which Xalles can assist our business,” said Richard Lee, Managing Member of LYC Mortgage. He added, “We look forward to enhancing our strong systems infrastructure through some of Xalles’ Blockchain applications and we know that the public company fundraising initiatives underway will enable LYC Mortgage to expand rapidly throughout the next year.”
As per the Share Purchase Agreement, Xalles and LYC Mortgage plan to close the acquisition transaction by August 31, 2019. Xalles will continue to look to expand its consumer and small business financial services subsidiary through organic growth and acquisitions.
About Xalles Holdings Inc. (OTC: XALL)
Xalles Holdings Inc. is a holdings company that focuses on direct investments in disruptive fintech companies. The company actively seeks acquisition targets with solid management teams and business models, large total attainable markets (TAM), and lucrative exit opportunities to invest and accelerate growth in. Recently, the company has placed emphasis on leveraging Blockchain technologies to provide industry-leading financial reconciliation and auditing solutions, which will allow for the capture of recurring revenue streams over time. For more information visit: http://xalles.com
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About LYC Mortgage, LLC
LYC Mortgage, LLC has built a strong reputation as an outstanding mortgage company, serving the lending needs of real estate professionals, builders and individual homebuyers throughout the states of MA, CT, SC, TX and CA. LYC Mortgage is a full service mortgage lender with an experienced staff offering expertise in every area of mortgage lending, from purchase to refinance. We have access to a full range of mortgage sources and all of our lending specialists are dedicated to finding the right loan - with the best rates, terms and costs-to meet our client’s unique needs. The exceptional mortgage services are also available online.
LYC Mortgage, LLC (NMLS ID #1443) www.nmlsconsumeraccess.org is an Equal Opportunity Lender and licensed as a Massachusetts Mortgage Lender/Broker License #MC1443; Connecticut Mortgage Lender License #ML-1443; Texas - SML Mortgage Banker Registration; California licensed by The Department of Business Oversight under the California Residential Mortgage Lending Act #603L253; South Carolina BFI - Mortgage Lender/Servicer License #MLS-1443.
For more information go to www.buyusda.com.
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