Chardan 2008 China Acquisition Corp. (Chardan) has signed a definitive agreement to enter into a business combination with DAL Group LLC (DAL), which, following the closing, will be one of the largest providers of mortgage processing services in Florida, the companies say.
At the closing of the business combination, DAL will own 100% of the business and operations of Default Servicing Inc. (DSI) and Professional Title & Abstract Co. of Florida (PTA), as well as the non-legal operations supporting the foreclosure and other legal proceedings handled by the Law Offices of David J. Stern PA (DJS).
Upon consummation of the transaction, Chardan will change its name to DJSP Enterprises Inc. (DJSP), and David J. Stearns will serve as CEO. The company provides a range of processing services in connection with mortgages, mortgage defaults, title searches and abstracts, real estate owned properties (REOs), title insurance, loss mitigation, bankruptcy, related litigation and other services.
DJS says its clients include all of the top 10 and 17 of the top 20 mortgage servicers in the nation.. The company has approximately 1000 employees and is headquartered in Plantation, Fla., with additional operations in Louisville, Ken., and San Juan, Puerto Rico. In addition, the company's U.S. operations are supported by a back-office operation in Manila, the Philippines, that provides data entry and document preparation support.
‘We are thrilled to be combining with DAL," says Kerry Propper, Chardan's CEO. "As one of the largest providers of processing services to mortgage lenders in Florida, and with its plan to expand its cyclical business segments and enter new geographic areas in the near term, this business combination represents a phenomenal opportunity for Chardan."
New cyclical business lines will include origination processing services, other consumer lending services and legal process outsourcing.
Stern anticipates company growth will be spurred by several factors, including an increase in REO-related services, such as asset disposition, and an increase in foreclosure-file volumes in Florida. The company is well-positioned to capitalize on loan modification efforts, Stern adds.
"As a large-scale operation, we plan to leverage our experience in mortgage default operations across multiple states and assist with broad loan modification efforts nationally," he says.
Additionally, "many of DJS's customers, which include the top mortgage servicers in the United States, have expressed a preference to use fewer firms to handle their foreclosure files. We expect this will result in our being able to increase our market share substantially," Stern says.