Select Portfolio Servicing on Monday announced that it has agreed to purchase certain assets from Rushmore Loan Management Services.
The financial terms of the deal were not disclosed. SPS will acquire servicing-related contracts and personnel in the transaction. The combined company will employ 1,600 associates, and be under contract to service 1.4 million loans.
Jocelyn Martin-Leano, the current president of Rushmore Servicing, will continue to head up the operation after the acquisition closes and it becomes a division of SPS. She will report directly to Select Portfolio Servicing’s CEO, Randhir Gandhi.
The two companies estimate that the transaction will close in the fourth quarter of this year, pending its clearance of regulatory hurdles and closing conditions.
“We believe that this combination of two highly rated and well-recognized brands will create a stronger company to better serve our customers, clients, regulators and associates,” Gandhi said in a press release. “I believe that we are like-minded with very similar cultural values.”
Both SPS and Rushmore have both received near-top ratings of 1- as residential servicers from Fitch. Fitch rates servicing entities on a scale of 1 to 5, and further differentiates with pluses and minuses.
Select Portfolio Servicing’s legal advisor was Alston & Bird and Rushmore’s was Mayer Brown. Rushmore also worked with financial advisor Houlihan Lokey.
Rushmore’s residential mortgage services include prime subservicing and property disposition. It also is a special servicer and a wholly-owned subsidiary of Roosevelt Management Co.
SPS also is a special servicer. Products it has specialized in include non-agency alternative-A and subprime credit loans. It’s a subsidiary of Credit Suisse.
