Consumer lending unit draws PE interest

Register now

Fiserv has agreed to sell a majority stake in a mortgage and consumer loan origination and servicing business to the private-equity firm Warburg Pincus.

Fiserv, in Brookfield, Wis., will sell a 55% stake in its Lending Solutions business group for $395 million after tax. Fiserv will retain a 45% stake, and the business will continue to provide services to existing Fiserv clients. The deal is expected to close by March 31.

The business unit provides auto loan origination and servicing products, and it operates the LoanServ mortgage and consumer loan servicing platform. Bret Leech, president of Fiserv Lending Solutions, will continue to lead the group after the transaction is completed.

“Fiserv is committed to delivering value for clients, and we expect this partnership with Warburg Pincus to further enhance service and innovation across the lending marketplace,” Fiserv CEO Jeffery Yabuki said in a news release Wednesday. “We will continue to provide integration advantages to ensure that our collective clients get the best of both organizations to provide differentiated value for our clients, associates and shareholders.”

The LoanServ product marketed by Lending Solutions provides an online, real-time platform for banks and credit unions to service all types of retail loans, including mortgages, home equity loans and lines of credit, auto loans, installment loans and personal loans.

Fiserv’s automotive loan origination system helps banks manage credit risk, workflow and pricing for loans and leases.

After the sale, Fiserv will continue to own and operate its Secure Lending product for e-contracting and its UniFi mortgage origination product.

Warburg Pincus, in New York, invests in bank technology firms, including Varo Money, a mobile startup that focuses on financial health, and Newfi Lending, an Emeryville, Calif., mortgage lender.

For reprint and licensing requests for this article, click here.
Mortgages Mortgage technology Mortgage applications MSR Auto lending M&A Fiserv Warburg Pincus