Rithm strengthens MSR capabilities
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Rithm Capital has entered into a definitive agreement with Computershare to acquire Computershare Mortgage Services and certain affiliated companies, including Specialized Loan Servicing (SLS), for a purchase price of approximately US$720m. The acquisition includes approximately US$136bn in unpaid principal balance of mortgage servicing rights, of which US$85bn is third-party servicing, along with SLS’s origination services business. Following the close of the transaction, SLS’s portfolio and operations will be transitioned to and managed by Newrez, a Rithm portfolio company.
The move is designed to further strengthen the firm’s origination and servicing channels. Rithm intends to finance the transaction through a mix of existing cash and available liquidity on the balance sheet, as well as additional MSR financing.
The transaction remains subject to customary closing conditions, including regulatory approvals. Completion is expected to take place in 1H24.
In other news…
Analytics partnership inked
Claira is set to integrate its analytics offering within Octaura, enabling Claira’s AI-driven document intelligence to be seamlessly accessible to traders for each CLO deal on Octaura’s platform. Traders will be able to rapidly understand stipulations and covenants from deal documents, and better incorporate terms and conditions information into price and risk considerations, according to the two firms. As electronic trading for loans and CLOs grows in prevalence, this integration ensures users can swiftly access precise deal information, sidestepping the need to sift through dense legal paperwork.