Financial terms of the transaction were not disclosed, but MCS did reveal some details of what the acquisition will mean for the two national companies' operations.

Fiveonline, a proprietary system that includes some capabilities built specifically for reverse mortgages, will be integrated with the acquirer's systems; and the combined entity plans to use the best of both platforms going forward, said Craig Torrance, the chief executive officer of MCS.

Torrance also explained the broader market drivers of the acquisition.

The transaction helps the two companies pool resources following a period when low foreclosure rates and high inflation that adjustments to reimbursements from government agencies haven't kept up with all have contributed to consolidation in the space, he said.

"In these lower-volume times, it makes sense to come together. The more volume you can put on the network, the more leverage you can get, and the more your vendors can get work," said Torrance.

The acquisition is in line with other efforts to diversify at MCS, which changed its name from Mortgage Contracting Services to the acronym in 2021 in order to reflect the expansion into other services. Today, MCS refers to the company's tagline, "making communities shine."

Its other acquisitions over time have included the purchase of Chain Store Maintenance in 2023, M&M Mortgage in 2019, and Carrington's property preservation unit in 2017.

The company currently provides not only real-estate preservation, maintenance, inspections, and renovation services used by mortgage servicers engaging in workouts or REO sales, but also similar tasks done for residential and commercial property managers and owners.

While field services in general have struggled, Torrance said consolidation and diversification are starting to pay off for MCS. Some estimates of private-company size suggest it's the top player in the space, and Torrance reckons Five Brothers is in the top five.

"The business has doubled in size in less than two years and we're seeing a lot of rapid growth even in the first couple of months of this year," Torrance said, referring to MCS.

Some of the growth has come from a slow resumption of some distressed mortgage work as pandemic-era restrictions have been rolled back, but work with performing income-producing properties has contributed too.

"Foreclosures are trending upward, but we've seen massive growth in our commercial and single-family rental segments," said Torrance. "Most of the growth is underpinned by these new segments we've entered."

Combining some commercial and residential property work has helped fill in areas where there might otherwise be a shortage in resources, Torrance said, noting that there are some exceptions in technical areas like commercial HVAC repair that require specific licensing.

 "You can put vendors together and do some basic maintenance work, it's very transferable between these different property types," Torrance said.

MCS attributes its ability to expand to investors who helped the company recapitalize in 2020. Both it and the family-owned Five Brothers are longtime players in the property preservation space. Five Brothers was founded in 1967 and MCS got started in 1986.

"We are bringing together two purpose-driven organizations with common goals and synergies that will continue delivering superior value to clients, while improving communities," said Nickalene Badalamenti-Kalas, president and CEO of Five Brothers, in a press release.