The latest economic and policy trends facing mortgage servicers

Join this webinar for an in-depth roundtable discussion on economic and policy trends impacting servicers as well as a look ahead at strategies servicers should employ in the next year.

2021 RealTrends Brokerage Compensation Report

For the study, RealTrends surveyed all the firms on the 2021 RealTrends 500 and Nation’s Best rankings, asking for annual compensation data for the 2020 calendar year.

Steve Murray on the importance of protecting property rights

In this episode, Steve Murray, RealTrends advisor and industry stalwart, discusses some of the issues facing private property rights, including how a case in Germany could potentially affect U.S. legislation.

Lenders, it’s time to consider offering non-QM products

The non-QM market is making a comeback following a pause in 2020. As lenders rush to implement, Angel Oak is helping them adopt these new lending products.

Politics & MoneyMortgage

Mr. Cooper completes acquisition of IBM’s Seterus mortgage servicing platform

Deal adds 300,000 new servicing customers to Mr. Cooper’s servicing portfolio

Mr. Cooper Group (the company formerly known as Nationstar) revealed this week that it completed its acquisition of IBM’s Seterus mortgage servicing platform in a deal that will add 300,000 new customers to Mr. Cooper’s servicing portfolio.

The deal was originally announced early this year. At the time, Mr. Cooper said that the deal included $24 billion in government-sponsored enterprise mortgages and a subservicing contract for $24 billion.

And according to a filing with the Securities and Exchange Commission, Mr. Cooper finalized the acquisition on Feb. 28, 2019.

“We are excited to welcome more than 300,000 customers and the Seterus team to the Mr. Cooper Group family,” Mr. Cooper Group Chairman and CEO Jay Bray said when the deal was first announced.

“We are confident our new team will be energized by our people-first culture, and our new customers will benefit from our user-friendly mobile and online tools designed to help them manage their home finances,” Bray continued. “This transaction is consistent with our outlook for profitability targets and portfolio growth.”

IBM’s Global Business Services’ Jay Bellissimo the company’s ownership of Seterus had run its course and IBM sought to place the company with a more experienced mortgage servicing outfit.

“IBM acquired Seterus in the wake of the 2008 financial crisis to help a client manage a portfolio of distressed loans. We were successful in this mortgage servicing work and the portfolio is now much more stable,” Bellissimo said earlier this year.

“The time is now right to divest this business, which is no longer core to IBM’s portfolio, to a mortgage servicing specialist whose domain expertise and scale can further advance this business,” Bellissimo added.

Now, Seterus is a Mr. Cooper company.  

And while Mr. Cooper is adding 300,000 new mortgage servicing customers in the deal, it won’t be bringing 310 of Seterus’ employees with them. Shortly after the deal was initially announced, it was revealed that IBM would be laying off 310 employees at a Seterus facility in North Carolina.

According to a notice from the North Carolina Department of Commerce, the layoffs take effect on March 11, 2019.

Financial terms of the Seterus deal were not disclosed.

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