According to HousingWire, Fay Group has purchased VanDyk Mortgage Corp., a Michigan-based lender, to strengthen its position in the conforming loan market. The two companies announced the deal on Friday, though they did not disclose the financial terms. Fay Group sees this move as a way to build on VanDyk's existing relationships with Fannie Mae, Freddie Mac, and Ginnie Mae, while also gaining access to VanDyk's mortgage servicing rights and expertise in creating conforming mortgage servicing rights.
VanDyk has been growing its business steadily over the past couple of years. The lender has originated about half a billion dollars in mortgages so far this year and did substantially more business in 2025 compared to the prior year, according to data from InGenius. Most of VanDyk's lending activity happens in Florida, Michigan, and North Carolina, and the company operates across multiple states with a network of branches and licensed loan officers.
Tom VanDyk, the company's founder, explained that he wanted to sell to another entrepreneurial firm rather than a large institutional buyer. He specifically praised Ed Fay as a founder-led operator who maintains deep personal involvement in his business, suggesting this would be a better home for VanDyk's employees and operations.
Fay Servicing, the servicing division of Fay Group, has traditionally focused on managing FHA loans and handling distressed and nonconventional assets. This acquisition gives them a meaningful way to diversify into more conventional, agency-eligible mortgages, which tend to be more stable and predictable from a servicing perspective. The deal reflects a broader industry trend where lenders and servicers are using acquisitions to balance their portfolios between specialty servicing work and traditional agency business.
The timing of this acquisition is noteworthy because Fay Servicing recently resolved a major regulatory matter with the Consumer Financial Protection Bureau. Earlier in the year, the CFPB closed out a consent order against Fay Servicing related to foreclosure practices, and the company paid restitution and penalties to resolve the matter.
What I am seeing locally in the Bay Area and East Bay is that servicers and lenders are increasingly focused on building sustainable, diversified businesses. This kind of acquisition makes sense because conforming loans backed by Fannie Mae and Freddie Mac provide steady, predictable servicing income, which helps offset the volatility and complexity that comes with specialty servicing work. For buyers and sellers in our market, this trend means the lenders and servicers handling their loans are working toward greater stability and resources to manage portfolios effectively.
