October 1, 2013
New York, NY (October 1, 2013) - Shellpoint Partners LLC ("Shellpoint"), a leading residential mortgage origination and investment company, announced today that its wholly owned subsidiary, New Penn Financial, LLC ("New Penn") acquired Resurgent Mortgage Servicing ("RMS") from Resurgent Capital Services ("RCS"). Terms of the transaction were not disclosed
A leading provider of customized mortgage servicing solutions, RMS is already the servicer of New Penn's residential mortgage loans. Upon completion of the acquisition, which is expected to occur before year end, RMS will be re-branded as Shellpoint Mortgage Servicing, operating as a division of and servicer for New Penn. The new entity will also continue RMS's core business: high touch mortgage servicing for its third party client base of financial services organizations.
RMS will also continue to service the mortgage portfolios owned by affiliates of RCS. As of August 31, 2013, Resurgent's servicing portfolio was $7.7 billion, and it is projected to reach $13 billion by year end. This portfolio includes agency, non-agency and servicing for investor owned loans.
"The acquisition of Resurgent Mortgage Servicing creates a complete residential mortgage operating platform for Shellpoint as we continue to expand our enterprise in the US Residential Mortgage markets," said Bruce Williams, Co-CEO of Shellpoint. "Resurgent Mortgage Servicing adds significant franchise value to Shellpoint's portfolio of companies and diversifies our revenue stream as a full service mortgage company and strategic partner for third-party servicing clients."
"After working with Jack and his team, we are excited to have them as part of the Shellpoint family of companies," said Jerry Schiano, CEO/President of New Penn. "Adding Servicing to our suite of offerings makes us a truly self-sufficient mortgage banking franchise, allowing us to manage the customer experience from beginning to end."
"In partnering with New Penn, we believe this transaction will create greater financial and operating stability while improving our support for our existing third party clients," said RMS Managing Partner Jack Navarro.
Resurgent currently employs approximately 225 servicing professionals at its Greenville, SC and Houston, TX office locations. With the addition of RMS, New Penn's operating businesses will employ over 1,300 mortgage professionals in 45 offices, with locations in 21 states. Resurgent will continue to be based in Greenville and Houston and operate under its existing management team.
The acquisition is subject to final approvals from state and federal regulatory agencies and the transfer of licenses in all applicable jurisdictions.
About Resurgent Mortgage Servicing
Resurgent Mortgage Servicing (RMS) is a residential mortgage servicer and special servicer that produces exceptional asset performance for a group of client partners through hands on, highly customized loan servicing and asset management for residential mortgage loans. RMS is rated ABOVE AVERAGE by S&P for primary residential and special servicing, RPS3/RSS3 (Positive Outlook) by Fitch Ratings for primary residential and special servicing, and is an approved DBRS residential mortgage servicer. For more information, please see the Company's website at www.resurgentmtg.com.
About Shellpoint Partners LLC
Shellpoint is a specialty finance company focused on the U.S. residential mortgage market. One of its primary goals is to provide additional options and liquidity to quality borrowers who do not fit the existing underwriting criteria for agency or government-backed mortgages. Shellpoint hopes that providing these additional options and liquidity will help the housing market recover through the return of private capital and the expansion of access to mortgage credit for such borrowers.
As an RMBS issuer and industry participant, Shellpoint is also committed to helping define the new market standards and practices that will support the growth of a healthy and responsible RMBS market. For more information, please see the Company's website at www.shellpointllc.com.
About New Penn Financial, LLC
Established in 2008 amidst a challenging era for the U.S. real estate and mortgage industries, New Penn has been able to enjoy substantial growth by focusing on quality originations without the challenges and legacy issues faced by many other existing mortgage lenders. The New Penn management team has decades of collective experience and shares a vision of forging a national industry presence built on competitive interest rates, exceptional customer service, and healthy lending practices.
In June of 2011, Shellpoint acquired New Penn creating a corporate family that enjoys financial strength and a management philosophy that encourages and supports the continued growth of New Penn. Benefiting from Shellpoint's financial and leadership assets, New Penn is a lender devoted to developing new loan products and serving diverse customers, including those who meet agency and government-backed mortgage criteria as well as creditworthy borrowers who do not. New Penn offers an expanding portfolio of mortgage options that meet the needs of more borrowers and help them to achieve their goal of home ownership.
Based in Plymouth Meeting, PA, New Penn is currently licensed as a mortgage originator in 47 states (including the District of Columbia).
Safe Harbor Statement
Certain statements in this release and in any of Shellpoint's, New Penn's or Resurgent's public documents referred to herein, contain or incorporate by reference "forward-looking" statements. Statements that are not historical fact are forward-looking statements. Words such as "expect," "believe," "anticipate," "project," "estimate," "forecast," "objective," "plan," "goal," "apparent" and similar expressions are intended to identify forward-looking statements. Forward-looking statements are based on Shellpoint's, New Penn's and Resurgent's current beliefs, intentions and expectations; however, forward-looking statements involve known and unknown risks, uncertainties and other important factors that could cause actual results, performance or achievements, to differ materially from those reflected in the statements made or incorporated in this release. Thus, these forward-looking statements are not guarantees of future performance and should not be relied upon as predictions of future events. The risks and uncertainties referred to above include, but are not limited to, future economic and business conditions; the effects of competition from other mortgage lenders; current uncertainty in implementation of the Dodd-Frank Wall Street Reform and Consumer Protection Act, including its implementing legislation and regulations, and other legislative and regulatory changes that impact the business, operations or governance of mortgage originators and/or securitizers; and Shellpoint's, New Penn's and Resurgent's ability to comply with the complexity of the various federal, state and local laws that govern its businesses; changes in regulations, mandates or the occurrence of other events that impact the business, operation or prospects of government-sponsored entities or government agencies such as the Federal Housing Administration or the Veterans Administration and/or Shellpoint's or New Penn's ability to sell mortgage loans to such entities or agencies.