An email has been sent to your address with instructions for changing your password.
There is no user registered with this email.
Sign Up
To create a free account, please fill out the form below.
Thank you for signing up!
A confirmation email has been sent to your email address. Please check your email and follow the instructions in the message to complete the registration process. If you do not receive the email, please check your spam folder or contact us for assistance.
Welcome to our platform!
Oops!
Something went wrong while trying to create your new account. Please try again and if the problem persist, Email Us to receive support.
Mr. Cooper Completes Sale of Reverse Servicing Portfolio
Rhea-AI Impact
(Moderate)
Rhea-AI Sentiment
(Neutral)
Tags
Rhea-AI Summary
Mr. Cooper Group Inc. has successfully completed the sale of its Reverse servicing portfolio under the Champion Mortgage brand to Mortgage Assets Management, LLC. CEO Jay Bray expressed that this sale simplifies the business model, focusing on core mortgage servicing and origination growth opportunities. CFO Chris Marshall noted the transaction enhances profitability and liquidity, pushing the company's capital ratios above 15%. Pro forma, the tangible net worth to total assets ratio is estimated at 17.5% as of September 30, 2021. The company continues to prioritize customer service and operational efficiency.
Positive
Sale of Reverse servicing portfolio improves focus on core business segments.
Transaction strengthens capital ratios, now above 15%.
Pro forma tangible net worth to total assets ratio improves to 17.5%.
Negative
None.
DALLAS--(BUSINESS WIRE)--
Mr. Cooper Group Inc. (“Mr. Cooper Group” or “the Company”) announced today that it has completed the sale of its Reverse 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,” said Jay Bray, Chairman and CEO of Mr. Cooper Group, and added, “We believe this transaction is a positive outcome for our Reverse customers and the team members who have supported this business.”
Vice Chairman, President and CFO Chris Marshall commented, “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%.” 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.
Wachtell, Lipton, Rosen & Katz acted as legal advisor to Mr. Cooper Group and Houlihan Lokey acted as financial advisor to Mr. Cooper Group.
About Mr. Cooper Group
Mr. Cooper Group Inc. (NASDAQ: COOP) provides quality servicing, origination and transaction-based services related principally to single-family residences throughout the United States with operations under its primary brands: Mr. Cooper® and Xome®. Mr. Cooper is one of the largest home loan servicers in the country focused on delivering a variety of servicing and lending products, services and technologies. For more information, visit www.mrcoopergroup.com.
