Mr. Cooper Announces Sale of Reverse Servicing Portfolio
July 06 2021 - 9:00AM
Business Wire
Mr. Cooper Group Inc. (“Mr. Cooper” or “the Company”) announced
today that it has entered into a definitive agreement for the sale
of its Reverse servicing portfolio, operating under the Champion
Mortgage brand, to Mortgage Assets Management, LLC and its
affiliates (“MAM”). Upon the close of the transaction, which is
subject to regulatory approvals and other closing conditions and is
expected prior to year end, MAM and its affiliates will assume
Champion’s reverse portfolio and related operations. The terms of
the transaction have not been disclosed; however, the Company does
not expect a significant impact on second quarter results.
The sale will reduce Mr. Cooper’s servicing portfolio by
approximately $16 billion in unpaid principal balance and decrease
its balance sheet by approximately $5 billion in HECM and other
assets. Pending the close of the transaction, the Company will
carry the Reverse business in discontinued operations.
“We are incredibly thankful to the Champion Mortgage team for
their steadfast commitment to our business, and we will work to
make the transition for them and our customers as smooth as
possible,” said Jay Bray, Chairman and CEO of Mr. Cooper Group.
“From a strategic standpoint, this is a major transaction -- we can
now completely focus on our core origination and servicing
segments. It also improves profitability, strengthens our capital
ratios, and positions us to accelerate growth.”
Vice Chairman, President and CFO Chris Marshall added, “Measured
from inception, Champion Mortgage has been a profitable operation
for Mr. Cooper, but it is not a material driver of our business.
This transaction strengthens our business model, simplifies our
financial statements, and allows us to reallocate liquidity into
our core operations. These benefits will contribute to even
stronger momentum for Mr. Cooper.”
Wachtell, Lipton, Rosen & Katz acted as legal advisor to Mr.
Cooper Group and Houlihan Lokey acted as financial advisor to Mr.
Cooper Group.
About Mr. Cooper Group
Mr. Cooper Group Inc. (NASDAQ: COOP) provides quality servicing,
origination and transaction-based services related principally to
single-family residences throughout the United States with
operations under its primary brands: Mr. Cooper® and Xome®. Mr.
Cooper is one of the largest home loan servicers in the country
focused on delivering a variety of servicing and lending products,
services and technologies. For more information, visit
www.mrcoopergroup.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20210706005217/en/
Investor Contact: Kenneth Posner, SVP Strategic Planning and
Investor Relations (469) 426-3633 Shareholders@mrcooper.com
Media Contact: Christen Reyenga, VP Corporate Communications
MediaRelations@mrcooper.com
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