After starting out the year by naming a new chief product officer and acquiring Mr. Cooper’s mortgage servicing platform for $250 million, Fintech software Sagent continues to line up deals with new and existing clients.
Sagent announced Wednesday that it’s signed a seven-year deal to help a Pittsburgh-based federal credit union bring its mortgage servicing business in-house.
Clearview Federal Credit Union, which operates 19 branch offices serving 110,000 members, will use Sagent’s LoanServ platform, along with its CARE customer relationship management and Datascape+ cloud-based data platforms.
“We were looking for a servicing fintech partner with both the scale and configurability to help us bring servicing in-house and deliver on our vision,” said Clearview executive Dustin Holmberg, in a statement. “After scrutinizing the market, Sagent was the only servicing fintech partner with the technical muscle and understanding of our human approach to meet our members’ evolving needs.”
Loan servicing involves not only collecting monthly payments from borrowers, but also helping them avoid defaulting in tough times. While many lenders outsource servicing to companies that specialize in it, it’s increasingly seen as a dependable source of revenue.
And because loan servicers have details about the borrower’s interest rate and loan balance, they’re also in an advantageous position to offer homeowners refinancing when opportunities arise, or help them finance a new home purchase.
Last month Sagent announced a five-year partnership extension with Freedom Mortgage Corp., which uses Sagent’s LoanServ, CARE and Tempo default management platform to service $400 billion in loans.
“With Sagent helping power our mortgage technology, we can iterate faster on our proprietary consumer experience to meet each customer exactly where they are in their homeownership journey and serve them with a combination of digital simplicity and smart human advice,” Freedom Mortgage executive David Sheeler said in a statement.
In recent months, Sagent has announced a series of similar deals:
- On Jan. 26, Sagent announced an extension of a multi-year servicing partnership with Gateway First Bank, which employs more than 1,600 workers and operates 170 mortgage centers in 43 states.
- In December, Sagent signed a 10-year deal to power loan servicing for Land Home Financial Services, a California-based independent mortgage bank.
- Sagent signed a seven-year deal in November to power loan servicing for Servion Mortgage, which partners with credit unions and community banks to provide mortgages to consumers.
In announcing the hiring of new Chief Product Officer Courtney Thompson in January, Sagent said it’s out to “remake loan servicing from the consumer perspective,” and deepen its relationships with customers, regulators and the fintech community.
Before forming a fintech management consulting firm, Consigliera, Thompson was was head of default servicing at Flagstar and ran the company’s fintech accelerator program.
“Rewiring America’s $12 trillion mortgage servicing sector requires nimble but highly technical software that connects all consumer, servicer, regulator, investor, and partner needs,” Sagent CEO Dan Sogorka said in a statement. Thompson “truly gets how these needs fit together into smart tech platforms. She’ll help us go faster delivering simplicity consumers expect without compromising on depth servicers require.”
A fintech software company that’s a joint venture between Fiserv Inc. and private equity firm Warburg Pincus, Sagent announced in February a $250 million deal to acquire the mortgage servicing platform of Mr. Cooper, a top mortgage servicer that collects payments on more than 3 million home loans. The deal also commits Mr. Cooper — which took a stake in Sagent as part of the deal — to license Sagent’s servicing platform for seven years, Sogorka said at the time.
In another bid to modernize mortgage and consumer loan servicing, last summer Sagent announced two strategic deals with digital lending and payments provider Figure. In addition to powering Figure’s mortgage servicing, Sagent is working with Figure to use its Provenance Blockchain technology to create efficiencies in lending.
“Together, we will reinvent the consumer mortgage servicing experience with Figure’s innovation speed and Sagent’s servicing depth,” Figure co-founder and CEO Mike Cagney said in a statement. “We’ll also begin bringing scale mortgage assets onto the Provenance Blockchain to reduce mortgage industry costs by up to 100 basis points from origination through securitization.”