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Rithm Takes Minority Stake in Valon as Newrez Plans 2027 Shift to ValonOS for 4 Million Homeowners

The move targets lower servicing costs, signaling confidence in Valon’s AI-native platform for regulated servicing.

Overview

  • Rithm confirmed a long-term minority equity investment in Valon, with financial terms undisclosed.
  • Newrez, one of the nation’s largest mortgage servicers, will begin deploying ValonOS across more than 4 million loans in 2027.
  • Rithm and Newrez say the rollout is intended to cut cost-to-service and improve the customer experience through automation.
  • The announcement extends Rithm’s early backing of Valon and follows Newrez’s recent technology moves, including a January investment in underwriting platform Homevision.
  • Valon describes ValonOS as an AI-native system that captures servicing data and decision logic to enable audit-ready scale, and the company, founded in 2019, has raised about $230 million, according to Tracxn.