Mr. Cooper and Sagent M&C, LLC have partnered to create the first cloud-native mortgage servicing platform. In exchange for Sagent buying certain intellectual rights related to Mr. Cooper’s proprietary, Mr. Cooper will receive a meaningful minority equity stake in Sagent.
“We believe Sagent’s shared vision, technology, and scale execution will help drive Mr. Cooper’s strategic growth by giving us the opportunity to bring our combined best-in-class servicing platforms to the industry, ultimately accelerating the future of mortgage servicing software and providing innovative solutions to mortgage servicers and their customers,” Mr. Cooper Group Chairman and CEO Jay Bray said in a release. “This agreement also provides us with meaningful efficiencies and allows us to accelerate our development of customer-facing applications that will delight our customers with personalized, friction-free solutions.”
According to the agreement, Sagent will integrate Mr. Cooper’s platform into a cloud-native core and license the resulting cloud-based servicing platform to Mr. Cooper and other servicers. This will include Sagent’s large customer base of banks and independent mortgage companies. The platform should be available to other mortgage companies in 2023.
“Partnering with Mr. Cooper not only adds a top mortgage servicer with more than three million loans as a seven-year Sagent customer; it also lets Sagent innovate faster than ever for all Sagent customers to deliver simplicity homeowners expect without compromising on depth servicers require,” Sagent CEO and President Dan Sogorka said.
“Sagent and Mr. Cooper share a vision of powering borrowers to manage their entire home and loan lifecycle from their mobile devices, and powering servicers to manage every single loan detail for consumers, regulators, investors, and partners,” he added. “This shared vision will lead our entire industry into the future.”
In additional to the equity stake, Bray and Chris Marshall, Mr. Cooper vice chairman and president, will join Sagent’s board of directors. Mr. Cooper Chief Information Officer Sridhar Sharma will be appointed senior technology advisor to the board as well.
Wachtell, Lipton, Rosen & Katz acted as legal advisor to Mr. Cooper Group. Kirkland & Ellis LLP acted as legal advisor to Sagent.