Mr. Cooper Group Inc. has completed the sale of its reverse mortgage servicing portfolio, operating under the Champion Mortgage brand, to Mortgage Assets Management LLC and its affiliates.
“We’re pleased to complete this sale, which allows us to continue on our path of rationalizing and simplifying the business model, in order to focus on the attractive growth opportunities in our core mortgage servicing and originations segments,” says Jay Bray, chairman and CEO of Mr. Cooper Group. “We believe this transaction is a positive outcome for our Reverse customers and the team members who have supported this business.”
The company estimated that pro forma for the sale, its ratio of tangible net worth to total assets was approximately 17.5% as of September 30, 2021, consistent with its prior disclosures.
“This transaction improves profitability and liquidity, simplifies our financial statements, and strengthens our capital ratios, which are now above our previously disclosed target of 15 percent,” states Chris Marshall, Mr. Cooper’s vice chairman, president and CFO.
Wachtell, Lipton, Rosen & Katz acted as legal advisor to Mr. Cooper Group. Houlihan Lokey acted as financial advisor to Mr. Cooper Group.
