Mr. Cooper Group Inc. and Sagent M&C LLC have signed a definitive agreement under which Sagent will buy certain intellectual property rights related to Mr. Cooper’s proprietary, cloud-based technology platform for mortgage servicing. Mr. Cooper will also receive an equity stake in Sagent.
This agreement will leverage Mr. Cooper’s mortgage servicing depth and Sagent’s software speed to create a cloud-native, homeowner-first servicing platform. Mr. Cooper will also become a multi-year customer of Sagent.
Sagent, a Warburg Pincus-backed fintech software company servicing banks and lenders, will integrate Mr. Cooper’s platform into a cloud-native core and license the resulting cloud-based servicing platform to Mr. Cooper and other servicers, including Sagent’s customer base of banks and independent mortgage companies. Sagent will begin marketing the cloud-based servicing platform to other mortgage companies in 2023.
“We believe Sagent’s shared vision, technology, and scale execution will help drive Mr. Cooper’s strategic growth by giving us the opportunity to bring our combined best-in-class servicing platforms to the industry, ultimately accelerating the future of mortgage servicing software and providing innovative solutions to mortgage servicers and their customers,” says Jay Bray, chairman and CEO of Mr. Cooper Group. “This agreement also provides us with meaningful efficiencies and allows us to accelerate our development of customer-facing applications that will delight our customers with personalized, friction-free solutions.”
Under the terms of the transaction, Mr. Cooper will receive a meaningful minority equity stake in Sagent, and Jay Bray as well as Chris Marshall, vice chairman and president of Mr. Cooper Group, will join Sagent’s board. Additionally, Sridhar Sharma, CIO of Mr. Cooper Group, will be appointed senior technology advisor to Sagent’s board.
“America’s mortgage servicers must be powered by nimble technology to be heroes to borrowers, stalwarts to investors and stewards of consumer protection to regulators,” states Andrew Bon Salle, a Sagent board member and former head of single-family business at Fannie Mae. “I believe Mr. Cooper and Sagent are leading this charge in today’s market.”
“Partnering with Mr. Cooper not only adds a top mortgage servicer with more than three million loans as a seven-year Sagent customer; it also lets Sagent innovate faster than ever for all Sagent customers to deliver simplicity homeowners expect without compromising on depth servicers require,” states Sagent CEO and president Dan Sogorka. “Sagent and Mr. Cooper share a vision of powering borrowers to manage their entire home and loan lifecycle from their mobile devices, and powering servicers to manage every single loan detail for consumers, regulators, investors, and partners. This shared vision will lead our entire industry into the future.”
