Dallas-based mortgage originator and service company Mr. Cooper Group has expanded via a major billion-dollar-plus deal.
Late last week, Mr. Cooper acquired the mortgage operations of New York-based Flagstar Bank for $1.4 billion in cash. Flagstar itself had been acquired by New York Community Bankcorp in 2022.
The deal includes MSRs, advances, subservicing contracts, and a third-party origination platform totaling around $356 billion in unpaid principal balance. Mr. Cooper said the acquisition will be funded “through available cash and drawdowns of existing MSR lines.”
Adds 1.3 million customers
The deal is expected to close in Q4 2024. Mr. Cooper says that with the closing, it expects to welcome 1.3 million customers.
“We have the operational capacity to onboard Flagstar’s customers with a smooth and positive experience, which will be our top priority,” Mr. Cooper Group Chairman and CEO Jay Bray said in a statement. “We also look forward to welcoming Flagstar team members to the Mr. Cooper family. We have long respected Flagstar as a mortgage servicer, and we feel very closely aligned with their cultural values.”
Acquired wholesale mortgage lender in 2023 for $324M
The acquisition is Mr. Cooper’s largest since May 2023, when the company acquired Ann Arbor, Michigan-based Home Point Capital in a deal valued at roughly $324 million in cash.
Mr. Cooper noted at the time that Home Point provided mortgage servicing on single-family residences throughout the United States.
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