Mr. Cooper is now selling another portion of his Xome business following the completion of the Title365 sale to Blend Labs at the end of the second quarter.
Xome Valuations is being sold for a total of $ 15 million to Voxtur Analytics, a Toronto-based company with offices on both sides of the border, of which $ 6 million is in inventory and the remainder in cash. Mr. Cooper's press release described the consideration as "not material".
Mr. Cooper had tried to divest the Xome operations in May 2017 when the former company was still operating as Nationstar Mortgage Holdings. Following the parent company's merger with WMIH, the lender changed course in August 2018 when Xome bought Assurant's mortgage business.
For the second quarter, which does not include Title365 results, Xome posted pre-tax income from continuing operations of $ 480 million and revenue of $ 39 million. For the same period last year, which included $ 52 million in Title365 revenue, Xome had $ 12 million pre-tax income from continuing operations on revenue of $ 106 million.
"This transaction is another example of how we are streamlining and simplifying to focus on our core businesses where we see tremendous growth opportunities," said Jay Bray, Mr. Cooper chairman and CEO, in the press release. "We are grateful to the Valuations team for their contribution to the company and will work closely with Voxtur to ensure a smooth transition for our team members and customers."
These sales reduce Xome to just one line of business. “We believe the decision is in the best interests of our company, our team and our stakeholders. "We are committed to providing a seamless experience for our Xome Valuations team members and customers as they transition to Voxtur."
At the beginning of this year, Voxtur took over the software company Anow for evaluation management.
"Reviews are manual, time-consuming processes for both lenders and consumers, and by putting all parties on the same automated platform we can dramatically improve the experience," said Gary Yeoman, executive chairman of Voxtur, in the company's statement. "With an intense focus on customers and operational efficiency, Xome Valuations is the right choice to scale our efforts and make an immediate impact in the valuation industry."
The Xome Valuations team will continue to be led by Al Broadway as President.
This transaction is expected to close in the current quarter, subject to regulatory approvals, including the TSX Venture Exchange.