Following the addition of several branches to its network at the start of 2024, Synergy One will purchase fellow retail lender Mann Mortgage, which is currently licensed in 28 states and employs over 500 people nationwide, according to the company's website. Daily Inter Lake, a Kalispell, Montana-based publication, reported the news previously. 

"There are a lot of really talented people at Mann, and some of our leadership has worked with a fair amount of Mann people as well in previous companies," said Synergy One CEO Steve Majerus in an interview with NMN. "Given that they're 100% retail like we are — similar technology platform — it was a pretty easy way for us to get aligned and put this together quickly."

Founded in 1989, Mann Mortgage will continue operations with its own branding under Synergy One's leadership, CEO Jason Mann said to Daily Inter Lake. Mann Mortgage took the top ranking in National Mortgage News' list of 2024 Best Companies to Work For. 

Its CEO cited market pressures contributing to his firm's decision to merge. While some staff will move over to Synergy One, layoffs at Mann Mortgage are expected to occur, he told Daily Inter Lake.

Financial terms of the deal were not disclosed.

The networks of both lenders are concentrated in the Western U.S., but within that context, the merger will bring new opportunities for Synergy One to Montana and Washington State in particular, according to Majerus.  

Mann's operations extend throughout the country and the acquisition also gives Synergy One new branches elsewhere "that are really complementary to markets that we're already in," Majerus noted.  

Licensed in 49 states with approximately 75 branches, San Diego-based Synergy One made expansion a key target in 2024, citing both favorable conditions within the company and expected industry trends. 

Earlier this year, the lender increased its branch network by absorbing 11 former Draper & Kramer Mortgage offices that opted out of a deal in which their parent company sold its single-family lending assets to New American Funding. 

"We haven't hidden the fact that for all of 2024, our intention was to grow aggressively into potential market opportunities," Majerus said.

The latest move suggests more potential activity in the offing, through both organic growth and potential future mergers, at Synergy One. 

"We're continually assessing opportunities as they present themselves," Majerus said. "We do expect to continue to grow through organic efforts, as well as being open to additional acquisitions. And I think it'll be that way for quite some time."

While lending volume has seen a resurgence this summer, the dramatic contraction in origination volume dating back to 2021 should make many smaller lenders amenable to selling this year, according to mortgage consultancy Stratmor Group. 

After record-setting origination volume of $4.44 trillion in 2021, lending retreated in the following two years and came in at $1.46 trillion for 2023, according to the Mortgage Bankers Association. The MBA expects volume to improve to $1.82 trillion this year. 

Other merger-and-acquisition deals announced in recent months include two asset sales. Axia Home Loans sold retail operations to Planet Home Lending, while OCMBC acquired certain Homestar Financial assets. Mortgage banking assets also played a prominent role in other deals involving banks and companies outside the home lending community. 

M&A activity hasn't been exclusively restricted to lenders, either. Earlier this year, Stratmor, itself, announced it had agreed to join forces with mortgage technology advisory firm Teraverde.