Companies partner up to launch the industry's first cloud-based mortgage servicing platform
Mr. Cooper Group has announced entering a definitive agreement with fintech company Sagent to create the “industry’s first cloud-native” mortgage servicing platform.
Under the multi-year deal, Mr. Cooper will sell certain intellectual property rights of its proprietary mortgage servicing technology platform to Sagent in exchange for a minority equity stake in the fintech company. In addition, Mr. Cooper CEO Jay Bray and Chris Marshall, president of Mr. Cooper, will join Sagent’s board.
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Sagent – a Warburg Pincus-backed fintech software company – will integrate Mr. Cooper’s platform into a cloud-native core to create a cloud-based servicing platform, which will be licensed to Mr. Cooper and other servicers, banks, and independent mortgage firms. Sagent will start marketing the new platform to other mortgage companies in 2023.
Bray said the agreement will provide Mr. Cooper with “meaningful efficiencies” and allow it to “accelerate the development” of its customer applications.
“We believe Sagent’s shared vision, technology, and scale execution will help drive Mr. Cooper’s strategic growth by giving us the opportunity to bring our combined best-in-class servicing platforms to the industry, ultimately accelerating the future of mortgage servicing software and providing innovative solutions to mortgage servicers and their customers,” he added.
Sridhar Sharma, chief information officer of Mr. Cooper Group, will also be appointed senior technology advisor to Sagent’s board, a release said.
“Partnering with Mr. Cooper not only adds a top mortgage servicer with more than three million loans as a seven-year Sagent customer; it also lets Sagent innovate faster than ever for all Sagent customers to deliver simplicity homeowners expect without compromising on depth servicers require,” said Sagent CEO and president Dan Sogorka. “Sagent and Mr. Cooper share a vision of powering borrowers to manage their entire home and loan lifecycle from their mobile devices and powering servicers to manage every single loan detail for consumers, regulators, investors, and partners. This shared vision will lead our entire industry into the future.”
