Connecticut Mortgage Lenders Merge, President says Others WIll Follow

Constitution Mortgage and BCI Financial Mortgage announced they have merged and will operate under a new name: BCI Financial Mortgage Corp., d/b/a Constitution Mortgage.

The company will offer a range of mortgage financing options, including reverse mortgages.

Because the mortgage business in Connecticut has changed significantly over the last three years, the companies saw an opportunity to join forces for what they both hope and see as a promising future in the mortgage arena.


“It’s an excellent combination of good people and a way to take advantage of economies of scale,” said Timothy Rourke, President of BCI. “The staff at Constitution is exactly what we were looking for and their mix of business will complement the BCI business.”

Constitution President Kevin Luddy told the Connecticut Business Journal that mergers and acquisitions will be the vehicle for many mortgage broker firms to grow over the next few years.  “With the growing compliance and licensing issues and the other positive changes, this really makes sense,” he said. “We firmly believe that this housing economy will recover and with new professionalism, due to the changes in licensing, BCI/Constitution will be well placed to take advantage of that rebound.”

Constitution isn’t involved in the reverse mortgage business, but BCI has a small footprint.  According to data from the Department of Housing and Urban Development, BCI endorsed 53 HECM loans in 2009 and 19 HECMs year to date.

For more data on BCI, check out their listing on ReverseBase.


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  • Some of the best and worst financial decisions have resulted in mergers and acquisitions (“M & A”). Part of the stated benefits on almost all M & A transactions is “economies of scale.” If what results is higher costs because of the inability of parties to scale back, financial problems creep in. If sales management is not able to maintain the same levels after combination as before, problems ensue unless that situation was anticipated.

    One should not mistake the combination of two entities as producing a stronger, better entity. What it does produce is an entity bigger than either one was immediately before the combination. When the only way for companies within an industry to grow is through M & A, that is a clear sign of a shrinking or worse, dying industry.

    The language used above is traditional with no insights. That in itself gives pause. I hope this combination proves successful because the announcement provides no indications it necessarily will be. Not long ago another company issued similar statements but clearer reasons for a M & A but within a year it began deteriorating and soon thereafter died. Many had described it as ideal.

    I wish this combination the best.

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