Mr. Cooper Group Selling Champion Mortgage Reverse Servicing Business

0

Mr. Cooper Group Inc. has entered into an agreement for the sale of its reverse mortgage servicing portfolio, operating under the Champion Mortgage brand, to Mortgage Assets Management LLC (MAM) and its affiliates.

The sale will reduce Mr. Cooper’s servicing portfolio by approximately $16 billion in unpaid principal balance and decrease its balance sheet by approximately $5 billion in HECM and other assets.

“We are incredibly thankful to the Champion Mortgage team for their steadfast commitment to our business, and we will work to make the transition for them and our customers as smooth as possible,” says Jay Bray, chairman and CEO of Mr. Cooper Group.

“From a strategic standpoint, this is a major transaction – we can now completely focus on our core origination and servicing segments. It also improves profitability, strengthens our capital ratios, and positions us to accelerate growth.”

Upon the close of the transaction, MAM and its affiliates will assume Champion’s reverse portfolio and related operations.

Wachtell, Lipton, Rosen & Katz acted as legal advisor and Houlihan Lokey as financial advisor to Mr. Cooper Group.

Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments