Property Preservation Firm Mcs Expands With Acquisition

Texas-based MCS, a property services company that moved into the reverse mortgage space last year, on Monday announced its acquisition of MSI as it seeks to grow its nationwide presence.

A press release from the companies said that the deal unites “two of the industry’s market leaders.” MSI’s current employees and services, along with its clients and vendor network, will be integrated within MCS. Financial terms of the acquisition were not disclosed.

“This acquisition boosts the MCS team capabilities and client roster and further enhances our reputation as the nation’s leading property preservation company,” Chad Mosley, president of MCS Mortgage Services, said in a statement.

“We are always seeking to diversify and expand our platform and the MSI expertise, entrepreneurial mindset, and strong reputation aligned perfectly with MCS. MSI has a long track record of success, and we’re excited to combine our collective strength as we continue to create the best platform built for long-term growth.”

“This is an exciting announcement for MSI,” CEO Steve Stallard said. “MCS is the right fit and the right partner, and this will allow our clients to benefit from an expanded vendor network and technology that supports many of the largest banks and servicers in the country. We are pleased to join forces with an organization that shares our focus on superior servicing and execution.”

MSI, which has been in business since 1983, is also headquartered in Texas and has additional offices in Iowa and Florida. It provides a suite of property inspection, preservation, repair management, violation abatement and REO asset management services to institutional clients.

MCS offers a diverse range of property preservation services across the commercial real estate and single-family rental sectors. In March 2024, the company expanded into the reverse mortgage business for the first time with its acquisition of Michigan-based Five Brothers Asset Management Solutions. Five Brothers offers occupancy verification services to ensure that reverse mortgage borrowers are utilizing their property as a principal residence.

In the wake of that move, MSC CEO Craig Torrance told HousingWire’s Reverse Mortgage Daily (RMD) that he saw many synergies between the firms that made them a strong fit.

“How I think about these things is that the reverse mortgage space is different from the forward mortgage space, with different regulations, platforms, requirements and customers. It’s essentially a different world,” Torrance said.

“But when you boil it down to the services that we provide, particularly in property management and preservation — maintaining the asset and ensuring it is preserved — the core activities like maintaining properties, cutting grass, fixing roofs are quite similar across both spaces, whether you’re in a foreclosed forward mortgage that’s running through Fannie Mae or Freddie Mac, or whether you’re on a HECM that’s going through the default process.”

In October 2024, RMD spoke with Torrance and Mosley at the National Reverse Mortgage Lenders Association’s annual conference for a glimpse into how the Five Brothers integration was progressing.

“The thing I’ve been really impressed with, being new to the reverse industry, is being able to interact with several of the reverse servicers that we know work with and getting to see how they execute on a daily basis,” Mosley said.

“Just based on the senior clientele, their processes, procedures or communication is very much geared toward that consumer base. And that’s been really interesting and refreshing to see their focus on their customers.”