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Mortgage Contracting Services Announces New Ownership

Lewisville, Texas-based Mortgage Contracting Services (MCS), which provides specialized services to financial institutions, announced Monday that it has completed a recapitalization of the company.

The company's representatives say that, under new leadership, it will "recapitalize its balance sheet through substantial reduction in debt, obtain new long-term financing to facilitate growth, and execute strategy as high-quality service provider to financial, real estate sectors."

The company’s new ownership is made up of an investor group led by Littlejohn & Co., LLC, Lynstone SSF Holdings Sàrl, funds advised by Neuberger Berman Alternatives Advisers, and Crescent Capital Group.

“We remain 100% focused on delivering the best customer experience while providing the market with a comprehensive service offering,” said MCS CEO Caroline Reaves. “MCS is a strong business because of our employees, our customer relationships, our sound business model, and strong leadership team. We are excited to partner with our new owners to further strengthen our operations and remain the industry’s provider of choice.”

Weil, Gotshal & Manges LLP served as legal counsel, and Houlihan Lokey and Portage Point Partners served as financial advisors to the company in connection with the transaction. Wachtell, Lipton, Rosen & Katz served as legal counsel and MAEVA Group served as financial advisors to an ad hoc group of its existing lenders.

"MCS provides critical specialized services to mortgage servicers and other financial institutions," according to a company press release. "The company provides field services such as inspections and property preservation for mortgages in default and real estate owned (REO). MCS utilizes an asset-light model, delivering its services through a network of independent vendors by leveraging its proprietary technology platform to efficiently automate workflow and ensure regulatory compliant solutions."