Guaranteed Rate, the Chicago-based privately held mortgage lender, is buying out its joint venture partner and acquired the remaining interest in specialty originator Premia Relocation Mortgage.
Its partner in the company was Serva, a relocation services company.
Details about the Guaranteed Rate transaction were not immediately available, including price and how much of Premia did Serva own prior to the sale. Last August, it merged with another relocation provider, BGRS Worldwide, when it picked up the interest in Premia.
“This acquisition begins an exciting new chapter in our story,” said Nina Arnaiz, president of Premia, in the press release. “We look forward to bringing additional value to our existing partners and continuing to introduce our exceptional service delivery model to new opportunities.”
Premia was founded in 1987, and it was known as GMAC Relocation. In 2009, the Troy, Michigan-based lender became a joint venture of Wells Fargo as its previous owner dealt with its problems in the mortgage business and rebranded. But Wells Fargo exited all of its remaining mortgage joint ventures in 2013 and 2014 due to what it called a hostile regulatory environment.
Premia then became a joint venture of Stearns Holdings, which Guaranteed Rate acquired in 2021. These joint ventures were a specialty of Stearns, but Guaranteed Rate had its own partnerships, including with Anywhere Real Estate (formerly Realogy).
Premia will keep its name and business focus of working with relocation services companies as well as directly with businesses that relocate workers on a regular basis. It is a specialty line because relocating employees as well as their employers have several needs, both domestic and international, that must be met beyond making a home purchase and getting a loan.
“Welcoming Premia fully into our family turbochargers the abilities of both companies to deliver world-class services to help our customers access groundbreaking technology, streamlined service, and an overall best-in-class experience, whatever their needs may be,” said Victor Ciardelli, founder and CEO of Guaranteed Rate.