The company expects a 5% increase in non-mortgage revenue after the discontinuation
CoreLogic has exited the reseller business as part of a strategic plan to lower its exposure to mortgage market volatility impacts.
CoreLogic announced Friday the discontinuation of and sale of its reseller operations, which include Tenant Screening and Credit and Borrower Verification Solutions.
Frank Martell, CoreLogic president and CEO, said the company expects to enhance its revenue profile and increase margins.
"In terms of revenue, the exit from these operations will accelerate our shift to higher fixed recurring revenue streams and significantly reduces our exposure to mortgage volatility," he said.
In addition to minimizing mortgage volatility risks, CoreLogic believes that the sale of its reseller business will increase its share of non-mortgage revenue from roughly 40% to 45%.
The firm also anticipates accelerated investment and growth of its core data-driven solutions, increased organic growth profile across its operating segments to more than 5%, sustained adjusted EBITDA margins of greater than 35%, and increased fixed recurring revenue to approximately 55% of total revenues.
