Computershare continues mortgage growth, acquires Capital Markets Cooperative
Follows another acquisition last week
Computershare, an Australian tech company that expanded into the U.S. mortgage market in 2011 when it acquired Specialized Loan Servicing for $113.6 million, announced last week that it was further growing its U.S. mortgage business with the acquisition of Altavera Mortgage Services.
But that move appears to be just the first step in a larger expansion, as for the second week in a row, Computershare announced its plans to acquire a U.S.-based company that operates in the U.S. mortgage space.
Computershare announced Wednesday that it plans to acquire Capital Markets Cooperative, a nationwide alliance of mortgage bankers that provides exclusive offerings and value-added services to its members.
Financial terms of the deal were not disclosed.
According to a release from Computershare, the acquisition is part of the company’s plans to grow its mortgage operations.
“The mortgage industry is an important area of future growth for Computershare,” said Bryan Butvick, executive vice president and head of Computershare’s mortgage related services. “We are pleased to be able to expand our service offering in that marketplace to include the wide array of services CMC offers its patrons.”
CMC has a network of more that 200 members, which it calls “patrons.” Those members include financial institutions, credit unions and independent mortgage lenders, all of which leverage CMC’s membership base to negotiate better products, services, pricing and liquidity solutions during the processing, sale and serving of mortgages by working with CMC’s network of preferred mortgage investors and mortgage service partners.
Additionally, CMC’s Cooperative Business Solutions provides access to a dependable loan origination stream and simplified access to the mortgage lending marketplace.
Under the terms of the agreement, CMC will remain a separate, autonomous entity, but Computershare stated that CMC will be a “strategic component” of Computershare’s expanding U.S. mortgage footprint.
“We are thrilled to become part of Computershare,” said CMC president and CEO Tom Millon.
“We already have a strong working relationship with Computershare and SLS, developed through successful transactions we have executed with them in the past year,” Millon added. “Computershare’s stability, operational capabilities and financial backing will support us to continue to grow our business, support our preferred investors and vendors, and provide outstanding products and services to our patrons.”
The deal is subject to approval of the government-sponsored enterprises and state regulators.
The companies said that the acquisition is expected to close on or around April 2016.