The newly merged businesses will soon transition to a single Stratmor brand over the coming months. Financial terms of the deal were not disclosed.

"Similar to the mortgage lenders and vendors that serve our industry, Stratmor decided to refresh our programs and services so we can continue to provide best-in-class experiences for our clients," said its CEO and senior partner Lisa Springer, in a press release. "Teraverde is the right company to enhance our ability to elevate our offerings and add even greater value to our industry."

The company will integrate consulting services of the two firms that span from sales and marketing to finance and technology. Stratmor currently advises more than 250 companies as clients on a range of business and digital strategies leading to profitability, tapping into its proprietary data sources. Digital-lending focused Teraverde, based in Lancaster, Pennsylvania, regularly works with its clients on developing best practices to optimize their technology stacks.

"We each have a sincere desire to improve our industry and provide superior services to our clients. Our firms have compatible cultures and complementary service offerings, said Teraverde CEO and co-founder Jim Deitch. "The Teraverde team is delighted to join Stratmor."

The merger between the two consultancy firms is the latest in a long list of deals to have taken place since 2022, as mortgage volumes contracted significantly following the lending boom of the previous two years. But rapidly accelerating rates in 2022 put a lid on both new purchases and refinances, with homeowners reluctant or disincentivized to take on higher costs associated with a new mortgage. 

Lenders finished 2021 with over $4.4 trillion worth of single-family originations and by the end of 2023 volumes had diminished by over 60% to $1.6 trillion, according to the Mortgage Bankers Association. 

While home lenders have been at the center of most mergers and acquisitions, deals among high-profile technology vendors, servicers, and now, consultancies have transformed the industry over the past several months.

Stratmor, based in Denver, regularly serves as an M&A advisor, and in its published research, has emphasized the need for continued mortgage industry consolidation and cost-cutting efforts in order to meet expected demand. 

In its announcement, Stratmor pointed out current pressure helped lead to the acquisition. "The mortgage industry is experiencing one of the toughest markets in its history. It is imperative that we all make informed business decisions to navigate this challenging cycle," Springer said.