Rithm Capital Buys Specialized Loan Servicing Business, Boosts Third-Party Servicing Business To $180B
Portfolio Pulse from Lekha Gupta
Rithm Capital Corp (RITM) has agreed to acquire Computershare Mortgage Services Inc. and certain affiliated companies, including Specialized Loan Servicing LLC (SLS), from Computershare Ltd (CMSQF) for about $720 million. The deal includes an unpaid principal balance of mortgage servicing rights worth about $136 billion. The acquisition will be financed through a combination of existing cash, available liquidity, and additional MSR financing. Post-acquisition, RITM will transfer SLS's portfolio and operations to its portfolio company, Newrez LLC, increasing its third-party servicing business to $180 billion.
October 02, 2023 | 4:35 pm
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RITM's acquisition of Computershare Mortgage Services and affiliated companies will significantly boost its third-party servicing business. However, the stock traded lower by 0.56% after the announcement.
The acquisition will significantly boost RITM's third-party servicing business, which could potentially increase its revenues in the long term. However, the stock traded lower after the announcement, indicating that investors may have concerns about the deal or other factors impacting the company.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEUTRAL IMPACT
CMSQF is selling Computershare Mortgage Services and affiliated companies to RITM for about $720 million.
The sale of Computershare Mortgage Services and affiliated companies could potentially free up resources for CMSQF to focus on other areas of its business. However, the impact on the stock price is uncertain without additional information on how the proceeds will be used.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
NEUTRAL IMPACT
RITM acquired Sculptor Capital Management Inc (SCU) in August for around $639 million.
The acquisition of SCU by RITM in August is mentioned in the context of RITM's recent acquisition activity. However, without additional information on the impact of this acquisition on SCU's operations or financials, the short-term impact on the stock price is uncertain.
CONFIDENCE 90
IMPORTANCE 60
RELEVANCE 50