Fay Group acquires VanDyk Mortgage to expand conforming loan footprint

Fay Group announced Friday that it has acquired VanDyk Mortgage Corp., a move designed to broaden its footprint in the conforming mortgage market and expand its mortgage‑servicing‑rights (MSR) portfolio. The transaction, whose financial terms were not disclosed, adds VanDyk’s $894 million in 2025 production and its capabilities across Fannie Mae, Freddie Mac and Ginnie Mae to Fay’s existing operations. Fay highlighted that VanDyk’s servicing team and ability to generate conforming MSRs complement its own business, while VanDyk founder Tom VanDyk framed the sale as a transition to another founder‑led platform, praising Ed Fay’s personal involvement and assuring employees of continued care.

The acquisition reflects a broader industry shift toward scaling conforming loan production and using mergers to balance specialty‑servicing exposure with more stable agency‑eligible assets. Fay’s servicing arm, Fay Servicing, has spent over a decade sub‑servicing Federal Housing Administration loans and managing distressed, at‑risk, and non‑conventional residential and business‑purpose assets. By integrating VanDyk’s conforming production and MSR creation, Fay aims to diversify its portfolio away from primarily distressed and non‑conventional loans toward a more traditional, agency‑eligible product line, thereby reducing risk and enhancing revenue stability.

The deal follows recent regulatory developments that have cleared the way for Fay’s expansion. In July 2025, the Consumer Financial Protection Bureau terminated a consent order against Fay Servicing for illegal foreclosure practices after the company paid $3 million in restitution and a $2 million civil penalty. Additionally, the U.S. Department of Housing and Urban Development rescinded prior fair‑housing design guidance, instituting a one‑year statute of limitations tied to a building’s initial certificate of occupancy. These regulatory resolutions, combined with a rising inventory of 883,683 homes as mortgage rates exceed 6.64 percent, set a backdrop for Fay’s strategic growth through the VanDyk acquisition.

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