Rithm Capital to Acquire Specialized Loan Servicing LLC

Rithm Capital Corp. (NYSE: RITM) (“Rithm Capital”), an asset manager focused on the real estate and financial services industries, today announced it has entered into a definitive agreement with Computershare Limited (ASX: CPU) (“Computershare”) to acquire Computershare Mortgage Services Inc. and certain affiliated companies, including Specialized Loan Servicing LLC (“SLS”), for a purchase price of approximately $720 million.

The acquisition includes approximately $136 billion in unpaid principal balance (UPB) of mortgage servicing rights, of which $85 billion is third-party servicing, along with SLS’s origination services business. Following the close of the transaction, SLS’s portfolio and operations will be transitioned to and managed by Newrez LLC (“Newrez”), a Rithm portfolio company.

“We are thrilled to welcome SLS to the Newrez family. Our track record of acquisitions in the mortgage servicing space continues to deliver value not only for our shareholders, but also for the millions of consumers we serve,” said Michael Nierenberg, Chairman, Chief Executive Officer and President of Rithm Capital.

“The addition of SLS continues to grow our best-in-class special servicing business and adds more clients and homeowners to the Newrez platform,” said Baron Silverstein, President of Newrez. “It further strengthens our origination and servicing channels, both of which are designed to deliver a customer experience that prioritizes a successful homeownership journey.”

“Rithm has strong mortgage industry credentials and the ability to bring capital to scale the business further. With its track record of successful M&A execution and integration, we expect a smooth transition for the business and our customers,” said Stuart Irving, CEO and President of Computershare.

Financing and Transaction Details

Rithm intends to finance the transaction through a mix of existing cash and available liquidity on the balance sheet, as well as additional MSR financing.

The transaction remains subject to customary closing conditions, including regulatory approvals. Completion is expected to take place in the first half of 2024.

For more information visit https://www.rithmcap.com/.

About Rithm Capital

Rithm Capital is an asset manager focused on the real estate and financial services industries. Rithm Capital’s investments in operating entities include leading origination and servicing platforms held through its wholly-owned subsidiaries, Newrez LLC, Caliber Home Loans Inc. and Genesis Capital LLC, as well as investments in affiliated businesses that provide residential and commercial real estate related services. The Company seeks to provide attractive risk-adjusted returns across interest rate environments. Since inception in 2013, Rithm Capital has delivered approximately $4.7 billion in dividends to shareholders. Rithm Capital is organized and conducts its operations to qualify as a real estate investment trust (REIT) for federal income tax purposes and is headquartered in New York City.