Blend Labs Inc. is officially exiting the title business with the sale of its Title365 subsidiary to Covius Services, the companies announced on Monday.
Blend acquired Title365 from Mr. Cooper for $422 million in 2021. While it’s stepping away from title operations, Blend will continue to use the platform for title and closing services. The Title365 team, including president Kirby Hulbert, will join Covius’s settlement services division.
The companies signed a definitive agreement, subject to third-party consents and regulatory approvals. Financial terms were not disclosed.
Rob Clements, chairman and CEO of Covius, said the acquisition will “scale Covius’ presence in the origination title space and complement our strength in loss mitigation and default title.”
John Surface, CEO of Covius Services, noted that the acquisition expands the company’s product offerings and deepens its client base.
Covius, a 2025 HousingWire Tech100 winner, is acquiring a firm licensed in 43 states that serves top 10 lenders, servicers, capital markets participants and home equity originators.
Blend CEO and co-founder Nima Ghamsari, who in early May disclosed the deal was in the works, said that the firm wants to focus on becoming the leading software platform for financial services.
The divestiture comes amid broader industry changes following Rocket Companies’ acquisition of Mr. Cooper, which introduces near-term financial uncertainty for Blend.
Mr. Cooper accounted for 17% of Blend’s total revenue in 2024, including approximately 5% of Blend Platform revenue and 47% of Title365 revenue ($21.6 million). Mr. Cooper also still holds a 9.9% stake in the title business, according to analysts at Keefe, Bruyette & Woods.
Blend’s point-of-sale (POS) contract with Mr. Cooper runs through the first half of 2028 with undisclosed minimum volume commitments. But analysts expect that Rocket, which historically uses in-house origination software, will not renew the contract.
In the first quarter of 2025, Blend reported $26.8 million in platform revenue, with $24.3 million from its software segment. That figure represented a 12% year-over-year increase but was down from $41.4 million in Q4 2024. The company posted a net loss of $9.2 million in the first quarter.
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