Mr. Cooper Group Buys $48B In Servicing Rights In IBM Seterus Mortgage Deal
Mr. Cooper Group announced a huge purchase as it acquires IBM's Seterus Mortgage Platform which includes a total of $48B in servicing rights, split evenly between government sponsored enterprise mortgages and a sub servicing contract.
“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., in a recent press release.
“This transaction is consistent with our outlook for profitability targets and portfolio growth.”
During the 2008 financial crisis, IBM acquired Seterus to help manage the portfolio of distressed loans, according to the release.
"We were successful in this mortgage servicing work and the portfolio is now much more stable," said Jay Bellissimo, General Manager, Cognitive Process Transformation, IBM Global Business Services..
"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.”
The purchase will be funded through financing on mortgage servicing rights and cash. The company also projects the deal to close in the first quarter of 2019.