IBM mortgage servicing division to benefit from Algorithmics acquisition
Armonk, New York-based IBM (IBM), which offers mortgage servicing through its Seterus division, agreed to acquire Toronto-based Algorithmics, a risk analysis firm, for $387 million. The firm provides software and advisory services used by banks, investment and insurance companies to assess risk and ensure compliance with regulations. IBM said the acquisition "expands IBM's business analytics capabilities in the financial services industry by helping clients quantify, manage and optimize their risk exposure across a range of financial risk domains." In May, IBM rebranded its mortgage servicing division to Seterus from IBM Lender Business Process Services. The speciality servicer is based in Beaverton, Ore. The mortgage servicing division actively participates in the Home Affordable Modification Program to help distressed borrowers. The acquisition, which is pending per the agreement, mirrors outsourcing giant Accenture's (ACN) agreement to buy residential and commercial mortgage processing services firm Zenta earlier this month. That deal will grow Accenture's ability to provide business streamlining services and customer operations to clients in the mortgage lending and servicing industries, as well as real estate investment trusts. Write to: Kerri Panchuk.