Veri-tax LLC, which provides tax verification and fraud management services to lenders, has been sold to the private investment firm Blue Horizon Capital LLC of Los Angeles.
"The acquisition … will provide additional capital and resources to support Veri-tax's growth initiatives," the companies said in a press release Monday. The price of the deal was not disclosed.
Veri-tax, of Tustin, Calif., will maintain its name, management team, employees and headquarters.
Michael Chon, managing partner of Blue Horizon Capital, will join Veri-tax's Peter Pozzuoli as co-president of Veri-tax.
"The mortgage industry is undergoing a dramatic shift toward responsible lending," Chon said in the press release. "Through our investment in Veri-tax, we will help empower financial services institutions with the most advanced, reliable and powerful verification and fraud prevention solutions on the market."
Veri-tax provides electronic tax and income verification services that enable mortgage lenders, banks and other issuers of consumer credit "to make informed decisions about the ability for potential borrowers to repay loans." Veri-tax clients include two of the nation's top four banks, as well as hundreds of other financial institutions.
"With more regulation on the way as a result of recently passed financial reform legislation, demand for better income and credit verification tools is set to explode," Pozzuoli said in the press release.