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.
