Mr. Cooper Group Inc. (“Mr. Cooper Group” or “the Company”) announced today that it has completed the sale of its Reverse servicing portfolio, operating under the Champion Mortgage brand, to Mortgage Assets Management, LLC and its affiliates.
“We’re pleased to complete this sale, which allows us to continue on our path of rationalizing and simplifying the business model, in order to focus on the attractive growth opportunities in our core mortgage servicing and originations segments.” said Jay Bray, Chairman and CEO of Mr. Cooper Group, and added, “We believe this transaction is a positive outcome for our Reverse customers and the team members who have supported this business.”
Vice Chairman, President and CFO Chris Marshall commented, “This transaction improves profitability and liquidity, simplifies our financial statements, and strengthens our capital ratios, which are now above our previously disclosed target of 15%.” The Company estimated that pro forma for the sale, its ratio of tangible net worth to total assets was approximately 17.5% as of September 30, 2021, consistent with its prior disclosures.
Wachtell, Lipton, Rosen & Katz acted as legal advisor to Mr. Cooper Group and Houlihan Lokey acted as financial advisor to Mr. Cooper Group.
About Mr. Cooper Group
Mr. Cooper Group Inc. (NASDAQ: COOP) provides quality servicing, origination and transaction-based services related principally to single-family residences throughout the United States with operations under its primary brands: Mr. Cooper® and Xome®. Mr. Cooper is one of the largest home loan servicers in the country focused on delivering a variety of servicing and lending products, services and technologies. For more information, visit www.mrcoopergroup.com.
Kenneth Posner, SVP Strategic Planning and Investor Relations
Christen Reyenga, VP Corporate Communications