Senior executive at UBS UBS said on Wednesday they had reached an agreement to sell credit suisseU.S. services business. They did not provide information about the buyer’s name or financial details.
In the United States, Credit Suisse owns Choose a service package (SPS). according to Inside Mortgage Finance As of the end of June, SPS was the 20th largest primary mortgage servicer in the United States, handling $166.7 billion in unpaid principal balances (UPB), according to the International Monetary Fund (IMF). Meanwhile, the company’s own services portfolio was $45 billion as of the second quarter of 2024, ranking 36th in the International Monetary Fund rankings.
On Wednesday, UBS Chief Financial Officer Todd Tuckner told analysts on an earnings call that the sale of Credit Suisse’s U.S. services business is expected to be completed in the first quarter of 2025 and will benefit the bank by reducing costs and balance sheet risks.
Chief Executive Sergio Ermotti added on a media call that a “consortium” acquired the business. Reuters first reported the deal.
Salt Lake City-based SPS has been servicing residential mortgage loans since 1989 and residential mortgage-backed securities (RMBS) transactions since 2000. Fitch Ratings.
The credit rating agency noted in a November 2023 report that SPS has approximately 806,000 non-agency RMBS loans (total value of $150 billion), 82,250 third-party serviced loans ($21.4 billion) and 26,500 agency and self-service loans. There are loans ($4.4 billion).
Fitch said the service provider has integrated “multiple digital technologies into its service platform to enhance the customer experience and adapt to the changing technology environment.” For example, SPS has added new features to its call center, according to its company website Implemented chatbot functionality and expanded use of email and SMS.
SPS was acquired by Credit Suisse in 2005 and in September 2022 announced an agreement to acquire certain assets of Texas-based SPS Rushmore Loan Management Services. With Rushmore as a subsidiary, SPS will employ more than 1,600 people and service approximately 1.4 million loans, the companies said in the deal announcement.
In June 2023, UBS Group acquired Credit Suisse Group and became the ultimate parent company of SPS. last month, Burundi UBS reportedly plans to shut down a business in its U.S. mortgage arm focused on “to-be-announced” (TBA) transactions.
