Lendia purchased by Virgin Money; Marlboro lender now part of Branson firm.

Byline: Bob Kievra

MARLBORO - Lendia LLC, which offers mortgage processing, underwriting, closing and funding services, has been acquired by Waltham-based Virgin Money USA, a person to person, or social lending company.

Terms were not disclosed. Gregory G. O'Connor, Lendia chief executive, will become executive vice president and general manager of Virgin Money, a financial services company formerly known as CircleLending until British billionaire Richard Branson acquired a majority ownership stake last year.

Lendia, which was once based in Worcester and operated under the name eSource Mortgage Inc., will maintain its headquarters in Marlboro. The company has 60 employees and no staff changes are planned, Mr. O'Connor said in an interview.

The move into the mortgage business follows Virgin Money's entry into the student loan market.

"It's a win-win for both companies," said Mr. O'Connor. "They made a decision to enter the mortgage space. We had crossed paths in the past and now a social lending product can be coupled with a traditional mortgage product,'' he said. Lendia's customers include mortgage brokers and originators, banks, credit unions and other real estate professionals.

Virgin Money will enhance Lendia's lending capacity and enable it to enter new markets, Mr. O'Connor said. Virgin Money is licensed in 13 states, including Massachusetts and Connecticut, but expects to obtain mortgage licenses in all 50 states, Mr. O'Connor said.

The social lending aspect of Virgin Money may be attractive in the mortgage business as family and friends play a role in a down payment or in a second mortgage that can enable a deal to proceed, Mr. O'Connor said. Virgin Money will offer brokers a range of social lending products, he said.

Interest rates for Virgin Money's social lending products are typically lower because borrower and lender know one another and repayment plans are often more flexible, the company said.