Tampa, Fla.-based Walter Investment Management Corp. has entered into a definitive agreement with Marathon Asset Management LP to purchase Marix Servicing LLC, a Phoenix-based specialty mortgage servicer. Marix is focused on default management, borrower outreach, loss mitigation, liquidation strategies, component servicing and specialty servicing.
Marix is a Standard & Poor's ‘Select Servicer’ that brings relationships with Fannie Mae and Freddie Mac, as well as a management team which averages over 22 years' industry experience, the companies note. The combined platform will be one of the nation's top-10 servicers of subprime mortgages.
‘We believe Marix will serve to both accelerate and broaden our portfolio acquisition opportunities,’ says Mark J. O'Brien, Walter Investment's chairman and CEO. ‘We view the acquisition of Marix as an opportunity to expand our business on numerous fronts. Marix not only provides us with a superb mortgage servicing platform with a nationwide footprint, it also provides an independent revenue stream and a well-developed information technology infrastructure, including proprietary applications which can be leveraged by both organizations.’
Using proceeds for its equity offering, Walter Investment has purchased at least three pools of loans this year, including an $11 million pool in April, an $8.6 million pool in June and a $14.5 million pool this month.
Walter Investment, Marix and Marathon say they will maintain a close strategic relationship after the closing, including the use by Marathon of Marix for the servicing of residential mortgage assets on an exclusive basis, participation by Marathon on Marix's advisory council and the continuation of pre-existing credit agreements provided to Marix by Marathon through March 2011.
The acquisition is subject to various standard closing conditions and is expected to close within 30 to 60 days.
Under terms of the agreement, the purchase price consists of a nominal cash payment at closing and certain earn-out payments which may be payable to Marathon over the three-year period, as well as the repayment to Marathon of certain servicing advances made by Marix, a Securities and Exchange Commission filing shows.
‘We look forward to remaining closely involved with Marix going forward through our strategic relationship with the company and through our role on the company's advisory council,’ says Bruce Richards, CEO of Marathon. ‘In addition, we're pleased that our mortgage investment businesses will continue to benefit from the strong servicing capabilities and industry insight of the combined entity under Walter Investment's leadership.’