Texas-based Mr. Cooper Group Inc. will purchase servicing rights for government sponsored enterprise mortgages worth $24 billion and the Seterus mortgage servicing platform from International Business Machines Corp., commonly known as IBM.
The deal also includes Mr. Cooper entering into a subservicing contract for an additional $24 billion in mortgages. The home loan servicer expects to fund the acquisition with financing on the mortgage servicing rights and cash.
IBM acquired Seterus soon after the 2008 financial crisis to help a client manage a portfolio of distressed loans.
The transaction is expected to close in the first quarter of 2019.