UBS UBS Decided to sell credit suisseof mortgage servicing companies, Choose a service package (SPS), to a group of investors led by 6th street, house line Already learned. investment company Davidson Kempner Capital Management are co-investors.
Representatives for Credit Suisse, Davidson Kempner and Sixth Street declined to comment. Bloomberg The buyer’s name was first reported based on anonymous sources.
Salt Lake City-based SPS is an established mortgage servicing company, but Credit Suisse has been trying to sell it for some time, sources told HousingWire. Banks reduce exposure to mortgage servicing rights (MSRs) in anticipation of higher rates capital requirements and risks. Wells Fargo Just an example.
UBS acquired Credit Suisse Group in June 2023 and became the ultimate parent company of SPS, executives at UBS reported on Wednesday. Sale of U.S. Services Business The buyer’s name or financial details were not disclosed.
The deal, expected to close in the first quarter of 2025, will reduce annualized costs by $250 million and reduce risk-weighted assets, UBS Chief Financial Officer Todd Tuckner said in a conference call with analysts. 1.3 billion, thereby benefiting the bank. Chief Executive Sergio Ermotti added on a media call that a “consortium” acquired the business. Reuters first reported the deal.
Fitch Ratings SPS said in a report that it has been servicing residential mortgage loans since 1989. mortgage-backed securities Conducted RMB BS transactions since 2000. The Swiss bank integrated SPS into its unit focused on non-core and traditional businesses.
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 valued at $45 billion as of the end of June, ranking it 36th in the International Monetary Fund rankings.
surfactant declare A deal was struck in September 2022 to acquire some of the assets of the Texas company 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.
