G’day! So, get this: that big-shot Aussie company, Computershare? Yep, they’ve made waves by announcing they’re letting go of their U.S. mortgage gig, selling it off to the high-flyers at Rithm Capital for a whopping $720 million! Sounds like they’re looking to streamline and get back to their bread and butter.
Included in this mega-deal? The sale of the Specialised Loan Servicing (or SLS for short) – a pretty big deal in the U.S. mortgage scene. This move is set to add a mountain of mortgage rights – roughly $136 billion in unpaid principal balance – to Rithm’s already fat wallet.
Once the ink’s dry and the deal’s sealed, SLS will pack its bags and get cozy under Newrez, one of Rithm’s shining stars.
And talk about a jackpot! Computershare’s stocks soared, hitting an impressive A$26.66. Last time they were riding this high was way back on Dec. 22.
A walk down memory lane: Computershare jumped into the deep end of the loan-servicing pool when they snagged SLS in 2011. Fast forward to today, and it looks like they’re trimming the fat, zeroing in on what they do best. Stuart Irving, the big boss over at Computershare, chimed in, saying this move lets them stick to their star performers – businesses that regularly bring in the big bucks, keep on growing, and give solid returns.
And what’s the word on the street? Henry Jennings, a top-notch market analyst, reckons it’s a smart move. “This deal’s a win-win for Computershare,” he says. “They get to refocus their game.” With the cut-throat world of mortgages, it seems like a no-brainer for Computershare to get back to basics.
On the flip side, Newrez’s head honcho, Baron Silverstein, is over the moon. “Bringing SLS on board? It’s like adding a turbocharger to our top-notch servicing engine. We’re stoked to welcome more folks to the Newrez family!”
A slight hiccup: Computershare’s looking at a one-time hit to their wallet, somewhere between $150 million to $180 million from this deal. Ouch. But hey, you win some, you lose some, right?
