Select Portfolio Servicing Inc. (SPS) has entered into a definitive asset purchase agreement with Rushmore Loan Management Services LLC to acquire certain Rushmore assets, the company announced today.
The acquisition will include hiring Rushmore servicing personnel and assuming Rushmore servicing contracts, it said.
The transaction is expected to close in the fourth quarter of 2022, subject to regulatory approvals and other customary closing conditions.
After the transfer, Rushmore, based in San Antonio, Texas, will operate as a division within SPS, led by current Rushmore President Jocelyn Martin-Leano, who will report to SPS CEO Randhir Gandhi.
"We believe that this combination of two highly rated and well-recognized brands will create a stronger company to better serve our customers, clients, regulators and associates," Gandhi said. "I believe that we are like-minded with very similar cultural values, which should result in a strong and successful future together."
"Rushmore Loan Management Services is honored to be joining the SPS team and proud to be part of the legacy SPS is creating," Martin-Leano said. "As we enter into this new era, we are well-positioned to build something truly special together and provide unmatched service to our customers and clients."
The combination of these servicing brands will create a strong value proposition to the residential mortgage loan servicing industry – offering a platform with deep expertise in servicing residential mortgage loans, the companies said.
With Rushmore under the SPS umbrella, SPS will employ over 1,600 associates that service approximately 1.4 million loans.
Houlihan Lokey served as financial advisor and Mayer Brown served as legal advisor to Rushmore. Alston & Bird served as legal advisor to SPS.
Founded in 1989, Select Portfolio Servicing is headquartered in Salt Lake City, Utah, and specializes in servicing single-family residential mortgage loans.
