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Rithm Capital to buy Computershare mortgage business

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Illustration: Aïda Amer/Axios

Asset manager Rithm Capital (NYSE: RITM) agreed to buy the mortgage services and specialized loan servicing businesses of Computershare Ltd. (ASX: CPU) for around $720 million.

Details: The deal includes about $136 billion in unpaid principal balance of mortgage servicing rights, of which $85 billion is third-party servicing.

  • It also includes Computershare affiliate Specialized Loan Servicing's origination services business.
  • Rithm plans to finance the deal through a mix of existing cash, available liquidity on its balance sheet and additional MSR financing.

Between the lines: Rithm portfolio company Newrez will manage the acquired mortgage portfolio and operations after the deal closes.

  • The acquisition will increase the company's third-party servicing business to $180 billion.

What they're saying: "It further strengthens our origination and servicing channels, both of which are designed to deliver a customer experience that prioritizes a successful homeownership journey," Baron Silverstein, president of Newrez, said in a statement.

What's next: The transaction is still subject to closing conditions and regulatory approvals but is expected to close in the first half of 2024.

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