Mr. Cooper Group has entered into a definitive agreement to sell its Xome Valuations business to Voxtur Analytics Corp. The sale is expected to close in Q3 of this year, and is subject to customary conditions.
“This transaction is another example of how we are rationalizing and simplifying to focus on our core businesses, where we see tremendous opportunity for growth,” said Jay Bray, Chairman and CEO of Mr. Cooper. “We are thankful to the Valuations team for their contributions to the organization, and we will work closely with Voxtur to ensure a smooth transition for our team members and clients.”
Mr. Cooper Group, which principally operates under the Mr. Cooper and Xome brands, recently reported its Q2 net income of $439 million. Net income included a $135 million mark-to-market charge, which excludes fair value amortization of $45 million. Excluding mark-to-market and other items, the Mr. Cooper reported pre-tax operating income of $227 million. Other items were $7 million in severance charges related to corporate actions, $485 million in gain on the sale of Title365, net of transaction costs, $16 million in discontinued operations related to the reverse portfolio, and $3 million of intangible amortization.
“The company’s balance sheet has never been stronger, with $1.2 billion in cash as of July 1, 2021, including the proceeds of the sale of Title365 and immediately accessible liquidity of $509 million,” added Chris Marshall, Vice Chairman, President, and CFO of Mr. Cooper. “Additionally, pro forma for the sale of the Reverse portfolio, our capital ratio exceeded our previously disclosed target of 15%.”
The sale of Xome Valuations comes on the heels of Mr. Cooper’s agreement to sell its reverse servicing portfolio, operating under the Champion Mortgage brand, to Mortgage Assets Management LLC (MAM) and its affiliates.
The company also strengthened its leadership team with the addition of Shawn Stone as EVP and Chief Revenue Officer, and the promotion of Jay Jones to EVP, leading the company’s servicing business.