REAL ESTATE

Mr. Cooper sells Xome’s field services unit

Mr. Cooper has agreed to sell Xome Field Services to Cyprexx Services for an undisclosed price, as part of its ongoing effort to dismantle its ancillary services business.

This follows the sale of Title365 to Blend Labs in July and an agreement last month to sell Xome Valuations to Voxtur Analytics for $15 million.

“Xome made the decision to sell its field services business to Cyprexx Services, a provider of property preservation services, as the company continues to focus investments and resources on growing its Exchange business,” Mr. Cooper said in a statement. “Along with the sale of the title and valuations businesses earlier this year, this transaction, which is expected to close during the fourth quarter, further reinforces Xome’s commitment to maximizing the potential of its auction platform and becoming the premier asset management company in the industry.”

The company does not consider the transaction’s financial implications to be significant. It said the same for the Xome Valuations sale.

“This transaction is consistent with our strategic focus on mortgage originations and servicing, where we see exciting growth opportunities,” Jay Bray, chairman and CEO of Mr. Cooper, said in a press release. “We thank all of our team members in the Field Services unit for their hard work and strong results and look forward to a smooth transition to Cyprexx.”

The majority of the field service business’ U.S. workers will become Cyprexx employees. “We are finding new opportunities within the company for the India-based team members supporting field services,” the Mr. Cooper statement said.

Xome was originally known as Solutionstar, which represented Mr. Cooper’s former brand name Nationstar. It was rebranded in 2015 to signify its focus on digital experiences for real estate consumers.

In May 2017, Nationstar/Mr. Cooper looked to dispose of Xome, but following its acquisition by shell company WMIH (which had held the remnants of Washington Mutual), it bulked the unit up with the purchase of Assurant Mortgage Solutions. The company paid $35 million cash for AMS.

In July, Mr. Cooper undertook another move to slim down and refocus its business by selling the reverse mortgage servicing portfolio to Mortgage Assets Management. The deal reduced the company’s servicing portfolio by $16 billion and removed $5 billion of Federal Housing Administration Home Equity Conversion Mortgages from its balance sheet.

At the end of the second quarter, Mr. Cooper serviced $654 billion, up 4% from the first quarter and 16% over the prior year.


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