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IPO / M&AMortgage

SPS to acquire Rushmore Loan Management Services assets

Last week Rushmore shuttered its correspondent channel business

Select Portfolio Servicing Inc. (SPS) has struck a deal to acquire certain assets of Texas-based Rushmore Loan Management Services LLC.

The deal, announced Monday, will result in Salt Lake City-based SPS acquiring Rushmore’s servicing personnel. The transaction is expected to close in the fourth quarter of 2022, subject to regulatory approvals. Terms of the deal were not disclosed.

Should the deal close, Rushmore’s servicing division, led by Jocelyn Martin-Leano, will operate as a division of SPS. Martin-Leano will report to SPS CEO Randhir Gandhi. 

“We believe that this combination of two highly rated and well-recognized brands will create a stronger company to better serve our customers, clients, regulators and associates,” Gandhi said in a press statement. “I believe that we are like-minded with very similar cultural values, which should result in a strong and successful future together.”

With Rushmore as a subsidiary, SPS would employ over 1,600 workers that service roughly 1.4 million loans. SPS is owned by Credit Suisse, and like Rushmore, one of the nation’s largest subservicers.

According to a June ratings report from Fitch Ratings, Rushmore serviced approximately 376,000 loans totaling $64.2 billion as of March 31, 2022. Fitch gave Rushmore a stable outlook, citing “the company’s strong post-pandemic performance, effective enterprise-wide risk environment and compliance management system, competitive loan servicing performance metrics and strong servicing technology.

“In addition, the company continues to promote a continuous improvement culture across the business, investing in significant technology enhancements and operational improvements.”

Rushmore, owned by New York-based parent company Roosevelt Management Company, last week shuttered its correspondent channel business and laid off its staffers.

According to data from mortgage software firm Modex, the company has originated about $822,000 in mortgage loans through August. Rushmore also has a property management division through its subsidiary Dakota Asset Services.

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