Risk management solutions provider Assurant has agreed to sell its Mortgage Solutions business to Xome, an indirect subsidiary of WMIH for $35m.
Potential future payments will be paid on performance basis. The sale, which closed yesterday, encompasses all of the Mortgage Solutions business including Title, Valuations, Mortgage Technology and Field Services.
Xome, based in the Dallas, TX area, is a provider of technology and data-enhanced solutions for homebuyers, home sellers, real estate agents and companies engaged in the origination and/or servicing of mortgage loans. Nearly all of Mortgage Solutions’ employees will join Xome.
Assurant Global Home president Michael Campbell said: “Successful execution of our profitable growth strategy requires us to align resources with our best opportunities.
“Our sale of the Mortgage Solutions business is driven by our ongoing desire to focus on lines of business where we have leadership positions, as well as to strengthen our offerings and capabilities in lender-placed homeowners insurance, multifamily housing, and the connected home.
Assurant will work closely with Xome to ensure a smooth transition of the business for its clients, employees and business partners.”
Campbell said: “In recent years, the Mortgage Solutions business has gone through a transformation in processes and technology.
“The acquisition by Xome is a natural fit for the Mortgage Solutions product portfolio and will give the business the scale it needs to reap the benefits of those investments.”
Assurant’s second quarter 2018 net operating income for Global Housing will include the operating results of Mortgage Solutions, but given the disposition, the associated assets and liabilities will be held for sale, which is expected to result in an estimated net loss of $34m reflected in consolidated net income.
Barclays Capital Inc. served as financial advisor to Assurant, Inc on the transaction.
Source: Company Press Release