After 35 years of operating as a family-owned business, Kalispell-based Mann Mortgage is on the cusp of finalizing a deal to merge with a national lending company. 

According to Mann Mortgage CEO Jason Mann, the business will merge with Synergy One Lending within the next week. Founded in 2013, Synergy One is based in San Diego, California with hundreds of employees at branches across the U.S. 

Mann said recent challenges in the mortgage lending industry following the pandemic prompted the business maneuver.  

Lending and refinance volumes boomed as interest rates hit historic lows between 2020 and 2021, with the average 30-year fixed rate dipping to 2.5% at its lowest. However, origination volumes cooled off as rates quickly climbed in 2022, topping out at nearly 8% last fall before lowering this summer to approximately 6.2% today. 

Market trends, coupled with more competition among lenders, led to the need to merge with a larger entity, Mann said. 

"The mortgage industry has seen two years of challenges," Mann explained. "We're not alone in that." 

Mergers and acquisitions in the mortgage industry have ramped up since 2022, according to National Mortgage News. Analysts expected that trend to continue through 2024 under the pressures of a shrinking market. 

"For the betterment of our team, we're joining forces with a team that's twice our size to give us a competitive advantage," Mann said. 

Mann Mortgage has hundreds of employees at its 55 co-op branches across the U.S., according to its website. 

While some Mann Mortgage employees will transition to roles with Synergy One Lending, Mann said some employees would be laid off. He did not know the total number of layoffs that would occur. 

"Quite a few are coming with us," he said. "Unfortunately, when you do a merger, we're not able to have everyone come with us." 

The local office locations will remain open following the merger, Mann said, noting that the new entity will be Mann Mortgage powered by Synergy One Lending. 

He said customers should see improved technology and better rates, while still getting familiar customer service. 

Mann Mortgage was started in 1989 by North Dakota native Don Mann, who remains the company's president. Mann Mortgage was named the Kalispell Chamber of Commerce’s Large Business of the Year in 2022. 

Mann described the transition away from being a family-run operation as "sad" and "a big change." 

"But time moves on," he said. 

"Change is good. Change is inevitable." 

He said the company would remain active in the community through philanthropy and volunteering. 

That won't change "just because we are going through a merger,” Mann said. “Our heart and soul will continue to live on."