Computershare: Sale of Low-Returning U.S. Mortgage Servicing Unit Heightens Focus on Core

The sale of wide-moat Computershare's noncore U.S. mortgage servicing business, or CLS U.S., is a positive development. Mortgage servicing is the only unit within Computershare that consistently incurs losses at the EBIT level, excluding margin income. The sale will release capital for higher-returning investments, enabling management to strengthen the moat of its core businesses: share registry, employee share plans, and corporate trust. CLS U.S. will be sold to Rithm Capital, an asset manager focused on real estate and financial services sectors. We expect the sale will be completed by management's fourth quarter of fiscal 2024 estimate.