Mr. Cooper Group Inc.
announced that it acquired the mortgage servicing platform from IBM’s Seterus along with a $48 billion servicing portfolio.
Mr. Cooper, formerly Nationstar, stated that it would fund the acquisition with financing on the mortgage servicing rights and cash. The Seterus portfolio consists of $24 billion in government-sponsored enterprise mortgages and $24 billion in conventional mortgages.
Jay Bellissimo, General Manager, Cognitive Process Transformation, IBM Global Business Services, noted that IBM acquired Seterus “in the wake of the 2008 financial crisis to help a client manage a portfolio of distressed loans,” adding that the sale comes at a time when the portfolio is enjoying a strong degree of stability.
“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 Bellisimo.
“We are excited to welcome more than 300,000 customers and the Seterus team to the Mr. Cooper Group family,” said Jay Bray, Chairman and CEO of Mr. Cooper Group Inc. “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.”