Company in talks to buy two mortgage servicing platforms
Mr. Cooper revealed Wednesday that it has entered into a definitive agreement to acquire Rushmore Loan Management Services.
Rushmore has agreed to sell its residential mortgage servicing platform, which includes about $37 billion in unpaid principal balance, to Mr. Cooper. The company has also inked a deal to purchase Roosevelt Management Company to serve as the platform for its mortgage servicing rights (MSR) fund asset management strategy.
The transactions are the latest in Mr. Cooper's string of acquisitions to bolster its servicing operations and are expected to close by mid-2023.
"During the past several months of discussions with Mr. Cooper's outstanding leadership team, I have become increasingly impressed with the strength and breadth of their platform and believe this combination provides a unique opportunity to take our operations to the next level," said Rushmore CEO Terry Smith. "Our combined entity will provide an unparalleled offering to a broader base of clients and customers."
Jay Bray, chairman and CEO of Mr. Cooper Group, commented, "We are delighted to welcome Rushmore's talented team to our family, and we are committed to providing a seamless experience for their important clients. Working together, we will bring to market one of the leading special servicers in the industry."
Mr. Cooper generated $37 million in net income in the first quarter. Its servicing business recorded a pretax income of $94 million, with $853 billion in UPB and $6.6 million in MSRs.
"Thanks to our balanced business model, we produced strong operating results and another quarter of rising returns," Bray said in the company's Q1 2023 earnings report. "Additionally, we ended the quarter with robust capital, record levels of liquidity, strong asset quality, and a significantly enhanced hedge on our MSR portfolio, positioning the company to navigate a volatile environment and deploy capital into accretive growth opportunities."
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