Select Portfolio Servicing announced on Monday that it has agreed to purchase certain assets of Rushmore Loan Management Services.
Financial terms of the transaction were not disclosed. SPS will acquire maintenance-related contracts and personnel as part of the transaction. The combined company will employ 1,600 associates and will be under contract to service 1.4 million loans.
Jocelyn Martin-Leano, the current president of Rushmore Servicing, will continue to lead the operation after the acquisition closes and it will become a division of SPS. She will report directly to Select Portfolio Servicing CEO Randhir Gandhi.
The two companies believe the transaction will close in the fourth quarter of this year, pending the removal of regulatory hurdles and closing conditions.
“We believe this combination of two highly rated and well-recognized brands will create a stronger business to better serve our clients, customers, regulators and associates,” Gandhi said in a press release. “I believe we share the same ideas with very similar cultural values.”
Both SPS and Rushmore received near-higher 1- ratings as residential repairers from Fitch. Fitch rates service entities on a scale of 1 to 5, and further differentiates with pros and cons.
Select Portfolio Servicing’s legal counsel was Alston & Bird and Rushmore’s was Mayer Brown. Rushmore has also worked with financial adviser Houlihan Lokey.
Rushmore’s residential mortgage services include prime servicing and property disposal. It is also a special servicer and a wholly owned subsidiary of Roosevelt Management Co.
SPS is also a special repairer. The products in which he specializes include non-agency alternative credit A and subprime. It is a subsidiary of Swiss credit.