Mr. Cooper Buys Flagstar’s Mortgage Operation for $1.4B

On the heels of a major data breach and leadership shakeup, Mr. Cooper is set to acquire Flagstar’s mortgage operation for $1.4 billion.

The deal promises to bring millions of new customers and a substantial loan portfolio into its fold, the Dallas Morning News reports.

The acquisition will include Flagstar’s mortgage servicing rights, subservicing contracts, advances and a third-party originating platform. It will also add approximately $356 billion in unpaid principal balance and bring around 1.3 million new customers to Mr. Cooper Group.

The deal, which is expected to close in the fourth quarter, will be financed with a mix of cash and existing mortgage servicing lines.

The deal is expected to close in the fourth quarter. Jefferies is serving as the financial advisor for the transaction.

It’s been a busy couple years for Mr. Cooper. Last April, it acquired Rushmore Loan Management Services’ residential mortgage servicing platform. The following month, it bought mortgage lender Home Point Capital for $324 million.

In the fall, though, it was hit with a cyberattack, which exposed 14.6 million customers’ personal information and led to at least two class-action lawsuits. In January, it hired Wells Fargo vet Mike Weinbach as president.

– Andrew Terrell