Mr. Cooper, one of the nation’s top servicers, and Sagent, a loan servicing software developer, announced on Friday that they will join forces to create a cloud-native servicing platform.
The definitive agreement reached by both parties stipulates that Mr. Cooper will sell certain intellectual property rights related to its proprietary, cloud-based technology platform for mortgage servicing to Sagent. Meanwhile, Mr. Cooper will receive a minority equity stake in the fintech company.
Additionally, under the terms of the agreement, Jay Bray, CEO of Mr. Cooper, as well as Chris Marshall, vice chairman of Mr. Cooper Group, will have a spot on Sagent’s board.
According to a joint press release, Sagent will integrate Mr. Cooper’s consumer-first platform into a cloud-native core and then will license the resulting cloud-based servicing platform to banks and independent mortgage companies.
The fintech company said that it expects the servicing platform to be ready for marketing by 2023.
Bray noted in a statement that the partnership – which will last for seven years- will “[accelerate] the future of mortgage servicing software.”
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Presented by: Mr. Cooper
Bray added: “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.”
In August 2021, Sagent also announced a partnership with fintech lender Figure Technologies.
Sagent said last year that it will power Figure’s mortgage servicing and help the lender accelerate its “transformative blockchain vision.”
In an earnings presentation on Friday, Mr. Cooper reported $155 million in net income in the fourth quarter, down 48.2% sequentially from Q3. Net income from originations came in at $181 million during the fourth quarter, down from $271 million in the third quarter. In all, Mr. Cooper originated $17.17 billion in mortgages in the fourth quarter, a 13.9% drop from the prior quarter.
Mr. Cooper’s servicing segment generated $87 million in pre-tax income in Q4, down from $197 million in the prior quarter. The servicing arm ended the fourth quarter with $710 billion in UPB, up from $668 billion in Q3.