Mr. Cooper and Sagent Announce Agreement to Create the Mortgage Industry’s First Cloud-Native Servicing Platform
February 11 2022 - 7:01AM
Business Wire
Multi-year deal integrates Mr. Cooper’s consumer-first
software platform into Sagent to accelerate modernization of
America’s top banks and lenders, including Mr. Cooper
Mr. Cooper Group Inc. (“Mr. Cooper” or “the Company”) and Sagent
M&C, LLC (“Sagent”) announced today the execution of a
definitive agreement under which Sagent will buy certain
intellectual property rights related to Mr. Cooper’s proprietary,
cloud-based technology platform for mortgage servicing, and Mr.
Cooper will receive an equity stake in Sagent. This agreement will
leverage Mr. Cooper’s mortgage servicing depth and Sagent’s
software innovation speed to create the industry’s first
cloud-native, homeowner-first servicing platform. Mr. Cooper will
also become a multi-year customer of Sagent.
Sagent, a Warburg Pincus-backed fintech software company
modernizing servicing for America’s top banks and lenders, will
integrate Mr. Cooper’s platform into a cloud-native core and
license the resulting cloud-based servicing platform to Mr. Cooper
and other servicers, including Sagent’s large customer base of
banks and independent mortgage companies. Sagent will begin
marketing the cloud-based servicing platform to other mortgage
companies in 2023.
“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,” said Jay Bray, Chairman
and CEO of Mr. Cooper Group. “This agreement also provides us with
meaningful efficiencies and allows us to accelerate our development
of customer-facing applications that will delight our customers
with personalized, friction-free solutions.”
Under the terms of the transaction, Mr. Cooper will receive a
meaningful minority equity stake in Sagent, and Jay Bray as well as
Chris Marshall, Vice Chairman and President of Mr. Cooper Group,
will join Sagent’s board. Additionally, Sridhar Sharma, Chief
Information Officer of Mr. Cooper Group, will be appointed Senior
Technology Advisor to Sagent’s Board.
Andrew Bon Salle, Sagent board member and former head of Single
Family Business at Fannie Mae, said, “America’s mortgage servicers
must be powered by nimble technology to be heroes to borrowers,
stalwarts to investors and stewards of consumer protection to
regulators. I believe Mr. Cooper and Sagent are leading this charge
in today’s market.”
“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.”
Wachtell, Lipton, Rosen & Katz acted as legal advisor to Mr.
Cooper Group. Kirkland & Ellis LLP acted as legal advisor to
Sagent.
About Mr. Cooper Group
Mr. Cooper Group Inc. (NASDAQ: COOP) provides customer-centric
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.
About Sagent
Sagent powers America’s top bank and nonbank lenders to engage,
care for, retain, and modernize the homeownership experience for
millions of borrowers. Servicers use our flexible, scalable, and
configurable solutions to engage borrowers and earn customer
loyalty, lower servicing costs, ensure compliance, and increase the
value of servicing rights throughout full market cycles. Sagent is
backed by Warburg Pincus, one of the world’s leading private equity
investors, and powers trillions in outstanding mortgage servicing
for its customers. Visit www.sagent.com to learn more.
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version on businesswire.com: https://www.businesswire.com/news/home/20220211005096/en/
Mr. Cooper Group 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
Sagent Chelsea Mize, Director of Marketing 208-220-4654
Chelsea.Mize@sagent.com
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