Rushmore Reaches Definitive Agreement to Sell Residential Mortgage Servicing Platform to Mr. Cooper Group

Rhea-AI Summary

Rushmore Loan Management Services has announced a definitive agreement to sell its residential mortgage servicing platform to Mr. Cooper Group for approximately $37 billion in unpaid principal balance, impacting around 250,000 customers. This strategic move follows Mr. Cooper's prior agreement to acquire Rushmore's parent company, Roosevelt Management Company, aiming to enhance its mortgage servicing rights fund. The deal is expected to close by mid-2023 pending regulatory approvals. Rushmore's CEO, Terry Smith, expressed confidence that this transaction will elevate their operational capabilities, while Mr. Cooper's CEO, Jay Bray, noted the commitment to delivering a seamless client experience. Financial and legal advisories for both companies include Houlihan Lokey and Mayer Brown.

Positive

• Acquisition adds approximately 250,000 customers.
• Transaction involves a substantial unpaid principal balance of $37 billion.
• Strategic enhancement of Mr. Cooper's service offerings.

Negative

• None.

Transaction Includes Approximately 250,000 Customers and $37 Billion in Unpaid Principal Balance

DALLAS, April 26, 2023 /PRNewswire/ -- Rushmore Loan Management Services LLC ("Rushmore" or the "Company"), a leading residential mortgage servicer, today announced that it has entered into a definitive agreement to sell its residential mortgage servicing platform, which includes approximately 250,000 customers with a total of approximately $37 billion in unpaid principal balance (UPB) to Mr. Cooper Group ("Mr. Cooper") (NASDAQ: COOP), one of the largest home loan servicers in the country. The transaction follows Mr. Cooper's agreement to acquire Roosevelt Management Company, LLC ("Roosevelt"), Rushmore's parent company, to serve as the platform for its mortgage servicing rights (MSR) fund asset management strategy.

Both transactions are expected to close by mid-year 2023, subject to various regulatory approvals and other customary closing conditions.

"During the past several months of discussions with Mr. Cooper's outstanding leadership team, I have become increasingly impressed with the strength and breadth of their platform and believe this combination provides a unique opportunity to take our operations to the next level," said Terry Smith, CEO of Rushmore. "Our combined entity will provide an unparalleled offering to a broader base of clients and customers."

Jay Bray, Chairman and CEO of Mr. Cooper Group, said, "We are delighted to welcome Rushmore's talented team to our family, and we are committed to providing a seamless experience for their important clients. Working together, we will bring to market one of the leading special servicers in the industry."

Houlihan Lokey is serving as financial advisor and Mayer Brown is serving as legal advisor to Rushmore. August is serving as strategic communications advisor to the Company. Wachtell, Lipton, Rosen & Katz acted as legal advisor to Mr. Cooper.

About Rushmore Loan Management Services

Rushmore Loan Management Services LLC is a residential mortgage servicer with services that include special servicing, prime sub-servicing, and property disposition through Dakota Asset Management. It is dedicated to providing outstanding service and customer support with a commitment to ethical business practices. For more information, visit www.RushmoreLM.com.

Contact
Steven Goldberg / Beau Falgout
August
323.892.5562
Rushmore@AugustCo.com

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SOURCE Rushmore Loan Management Services

FAQ

What is the value of the transaction between Rushmore and Mr. Cooper Group?

The transaction is valued at approximately $37 billion in unpaid principal balance.

How many customers are involved in the Rushmore sale to Mr. Cooper?

Approximately 250,000 customers are included in the sale.

When is the expected closing date for the Rushmore and Mr. Cooper transaction?

The transaction is expected to close by mid-2023, subject to regulatory approvals.

What are the strategic implications of Rushmore's sale for Mr. Cooper Group?

The acquisition is expected to enhance Mr. Cooper's offerings in the mortgage servicing sector.

Who are the financial and legal advisors involved in the Rushmore sale?

Houlihan Lokey is the financial advisor, and Mayer Brown is the legal advisor for Rushmore.