Mr. Cooper Group, the nation’s largest home servicer, announced today the closing of its previously announced acquisition of Flagstar Bank’s mortgage operations, including the acquisition of mortgage servicing rights (MSRs), advances, subservicing contracts, and Flagstar’s TPO platform for approximately $1.3 billion in cash.
“This acquisition demonstrates our ability to deliver full-service solutions to financial institutions and other clients, helping them manage their balance sheet and legacy and ongoing operations to achieve their strategic goals,” Mr. Cooper Chairman and CEO Jay Bray said. “We welcome Flagstar’s customers, clients, and team members to Mr. Cooper and expect to fully integrate operations onto our platform during early 2025.”
The acquisition of Flagstar Bank adds roughly 600,000 customers to the 5.4 million already being serviced by Mr. Cooper, according to the company’s third quarter earnings report, released Oct. 23.
Mr. Cooper Group President Mike Weinbach added, “We now serve more than 6 million customers, and for every single customer we are dedicated to keeping the dream of homeownership alive and to finding ways to achieve their financial goals.”
The online-only lender leads with its robust mobile app that allows borrowers to manage their mortgage and monthly payments. Despite facing headwinds over the past few years, like a series of cyberattacks and a borrower class action lawsuit that was settled for $3.6 million in 2023, Mr. Cooper’s business is steadily cruising along. According to its third quarter earnings, Mr. Cooper also saw funded volume increase 80% from the previous quarter.
This acquisition comes after Mr. Cooper Group merged with Home Point Capital Inc., in May 2023, purchasing the bulk of its servicing portfolio that totals $1.2 billion. In July 2023, the Company also acquired all the equity interests of Roosevelt Management Company, including Rushmore Loan Management Services.
