Rithm Capital Buys Specialized Loan Servicing Business, Boosts Third-Party Servicing Business To $180B

Rithm Capital Corp RITM penned a deal with Computershare Ltd CMSQF for the acquisition of Computershare Mortgage Services Inc. and certain affiliated companies, including Specialized Loan Servicing LLC (SLS), for about $720 million.

The buyout comprises an unpaid principal balance (UPB) of mortgage servicing rights worth about $136 billion, of which $85 billion is third-party servicing, along with SLS's origination services business. 

RITM plans to finance the acquisition through a combination of existing cash, available liquidity, and additional MSR financing.

Following the deal closure, RITM will transfer SLS's portfolio and operations to its portfolio company, Newrez LLC.

The transaction, which will grow Newrez's third-party servicing business to $180 billion, is expected to be completed in H1 2024 on customary closing conditions.

"The addition of SLS continues to grow our best-in-class special servicing business and adds more clients and homeowners to the Newrez platform. It further strengthens our origination and servicing channels, both of which are designed to deliver a customer experience that prioritizes a successful homeownership journey," said Baron Silverstein, President of Newrez.

As of June 30, 2023, RITM had cash and equivalents of $1.7 billion. 

In August, RITM disclosed the acquisition of Sculptor Capital Management Inc SCU for around $639 million.

Also Read: Rithm Capital Buys $1.4B Of Marcus Loans From Goldman Sachs

Price Action: RITM shares traded lower by 0.56% at $9.24 on the last check Monday.