The deal, which was announced in February, allows Sagent to buy certain intellectual property rights related to Mr. Cooper’s proprietary, cloud-based technology platform for mortgage servicing, and Mr. Cooper will receive an equity stake in Sagent. The agreement will allow Mr. Cooper to become a multi-year customer of Sagent.
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, including Sagent’s large customer base of banks and independent mortgage companies. Sagent will begin marketing the cloud-based servicing platform to other mortgage companies in 2023.
“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,” said Jay Bray, Chairman and CEO of Mr. Cooper Group. “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.”
Under the terms of the transaction, Mr. Cooper will receive a meaningful minority equity stake in Sagent, and Jay Bray, as well as Chris Marshall, Vice Chairman and President of Mr. Cooper Group, will join Sagent’s board. Additionally, Sridhar Sharma, CIO of Mr. Cooper Group, will be appointed Senior Technology Advisor to Sagent’s Board.
“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,” said Sagent CEO and President Dan Sogorka. “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. This shared vision will lead our entire industry into the future.”