HML buys mortgage servicer Topaz Finance from RBS
MORTGAGE servicer HML has consolidated its market-leading position with the purchase of Topaz Finance from the Royal Bank of Scotland.
The North Yorkshire-based group, which was part of Skipton Building Society until last July, services almost 60% of the residential mortgage market in the UK and Ireland. It has made the purchase, which is subject to regulatory approval, through its subsidiary Specialist Mortgage Services (SMS). The value of the deal has not been disclosed.
Andrew Freeley, managing director of SMS, said: “With the recent improvements in the economy, momentum for trading mortgage portfolios is building quickly. Our clients are increasingly looking for a strategic partner who specialises in managing mortgage portfolios to support their acquisition and disposal strategies, to enhance the value of their mortgage assets and to provide the rigour and quality required to manage customers and regulatory risk effectively.
“The acquisition of Topaz supports our strategy, giving us further scale and enhanced capability in mortgage portfolio management. With HML being the clear market leader in mortgage servicing, the ability to deliver the most advanced end-to-end mortgage management solution in the market sets us apart from our competitors.”
The acquisition of Topaz – which is the master servicer for approximately £700m of residential mortgages – and the development of SMS’s scale and capability in mortgage portfolio management is also a key facet of HML’s owners. Computershare bought HML last year for an initial fee of £47.5m from Skipton Building Society
Andrew Jones, chief executive officer of HML, said: “The commitment by Computershare to grow the loan servicing business is significant and the acquisition by SMS of Topaz is an important part of this strategy.
“The growth of SMS is integral to both Computershare and HML’s strategy for 2015 and beyond. We have already benefited from working with our new parent’s US mortgage administration company, Specialized Loan Servicing, to share our knowledge and expertise. Further investment into our market-leading advanced analytics and technology will enable us to continue our growth plans, meeting the needs of clients globally.”
