Mr. Cooper Group Announces $48 Billion Servicing Transaction
January 03 2019 - 4:15PM
Business Wire
Mr. Cooper Group Inc. (NASDAQ: COOP) announced today the signing
of definitive agreements to acquire servicing rights underlying $24
billion in GSE mortgages, enter into a subservicing contract for an
additional $24 billion in mortgages, and purchase the Seterus
mortgage servicing platform and assume certain assets related
thereto from IBM (NYSE: IBM).
“We are excited to welcome more than 300,000 customers and the
Seterus team to the Mr. Cooper Group family. We are confident our
new team will be energized by our people-first culture, and our new
customers will benefit from our user-friendly mobile and online
tools designed to help them manage their home finances,” said Jay
Bray, Chairman and CEO of Mr. Cooper Group Inc. “This transaction
is consistent with our outlook for profitability targets and
portfolio growth.”
“IBM acquired Seterus in the wake of the 2008 financial crisis
to help a client manage a portfolio of distressed loans. We were
successful in this mortgage servicing work and the portfolio is now
much more stable. The time is now right to divest this business,
which is no longer core to IBM’s portfolio, to a mortgage servicing
specialist whose domain expertise and scale can further advance
this business,” said Jay Bellissimo, General Manager, Cognitive
Process Transformation, IBM Global Business Services.
Mr. Cooper expects to fund the acquisition with financing on the
mortgage servicing rights and cash. Subject to regulatory
approvals, the transaction is targeted to close in the first
quarter 2019.
About Mr. Cooper Group Inc.
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. Xome provides technology and data
enhanced solutions to homebuyers, home sellers, real estate agents
and mortgage companies. For more information, visit
www.mrcoopergroup.com.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995
including, but not limited to, Mr. Cooper’s expectations or
predictions of future financial or business performance or
conditions, including, but not limited to, this transaction. All
statements other than statements of historical or current fact
included in this press release that address activities, events,
conditions or developments that we expect, believe or anticipate
will or may occur in the future are forward-looking statements.
Forward-looking statements give our current expectations and
projections relating to our financial condition, results of
operations, plans, objectives, future performance and business, and
these statements are not guarantees of future performance.
Forward-looking statements may include the words “anticipate,”
“estimate,” “expect,” “project,” “intend,” “plan,” “believe,”
“strategy,” “future,” “opportunity,” “may,” “should,” “will,”
“would,” “will be,” “will continue,” “will likely result,” and
similar expressions. Such forward-looking statements involve risks
and uncertainties that may cause actual events, results or
performance to differ materially from those indicated by such
statements. Certain of these risks are identified and discussed in
documents Mr. Cooper has filed or will file from time to time with
the SEC. These risk factors will be important to consider in
determining future results and should be reviewed in their
entirety. These forward-looking statements are expressed in good
faith, and Mr. Cooper believes there is a reasonable basis for
them. However, the events, results or trends identified in these
forward-looking statements may not occur or be achieved.
Forward-looking statements speak only as of the date they are made,
and Mr. Cooper is not under any obligation, and expressly disclaims
any obligation, to update, alter or otherwise revise any
forward-looking statement, except as required by law. Readers
should carefully review the statements set forth in the reports
that Mr. Cooper has filed or will file from time to time with the
SEC.
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version on businesswire.com: https://www.businesswire.com/news/home/20190103005683/en/
Investor Contact:Kenneth Posner(469)
426-3633Kenneth.Posner@mrcooper.com
Media Contact:Christen ReyengaMediaRelations@mrcooper.com
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