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24 The Exchange is past September, Cyprexx Services announced that it had entered into a definitive agreement to purchase Xome Field Services, with the sale expected to close during Q4 2021. In a statement at the time, Ed Mullen, CEO of Cyprexx, said, "We envision the united companies will provide Cyprexx with the ability to expand our footprint, create greater efficiencies, and utilize our core competencies to better serve existing and new clients." As word of the deal broke during the annual Five Star Conference & Expo in Dallas, DS News got the chance to sit down in person with Mullen to discuss the deal and its implications for Cyprexx, Xome Field Services, and the larger industry. Could you tell me how this deal came together? When we heard in the industry that Xome was looking to sell most of its components, we immediately reached out to their operations folks to let them know we wanted to be involved in the process and have a seat at the table. Mr. Cooper was a large client for us back when volumes were high, and we were already fully integrated with all their platforms and other systems. We also ranked very high on their scorecard. Because they wanted to look at a partner that could manage this for the long term, I think we became the favorite, not just because of our past performance but also because of our confidence in what we could do from a quality point of view. So far, it's been a fast process: from the days of the first initial calls to a definitive agreement in less than 90 days, including financing commitment. How does that compare to the typical timeline for this sort of deal? It depends on the structure, the financing, and the size of a transaction. Standard would be 120 days by the time you get through the process and diligence. is transaction is a carve-out so there are no audited financials at the specific entity level. e audited financials are at the top company, the Mr. Cooper level, and down to a subsidiary level, but not audited when you go below the subsidiary. For a carve it out—you must extract relevant financial components out of their general ledger, stand it up as a standalone business to then see what additional resources are needed because usually there are a lot of overhead type functions that the parent does. at was the biggest piece, just getting our heads around all of it. e exciting thing for us is there are no crossover clients. Cyprexx's client base is very different than that of Xome. So, we're looking forward to the opportunity to work with these new clients. How does this new partnership strengthen both Cyprexx and Xome Field Services? From a Cyprexx point of view, it adds scale, add skill set to our bench and allows us to be linked to a leading mortgage servicer as they grow. From Mr. Cooper's point of view, I believe, it's allowing them to go back and focus on their core business. So, it's a perfect win for both of us. We needed to scale. We needed a long-term relationship. ey wanted a partner they could trust in a long-term relationship. So, we were both aligned but for different reasons. This sort of consolidation can sometimes bring anxiety for the existing team members? What is your message to the Xome Field Services team during this process of integrating them and bringing them under your banner? ere's always that anxiety with any of these transactions. So, I would say that before, they were a smaller cog in a huge wheel. ey're no longer a smaller cog; with the consolidation of Cyprexx they are now a larger National Field Service provider. I think they'll get a lot more attention. We've outlined our culture for them, and we've always been a very friendly, family-orientated company. at doesn't mean they won't make tough decisions, but it's different from being part of a large corporation. Here at the Five Star Conference in Dallas, some of their leadership got to spend time with the Cyprexx founder, his wife, and the family. We are looking forward to the growth between the two of us, and our message to them is, we're going to onboard your team as fast as possible and look to get the best in class out of both organizations. We will evaluate their workflows and see if they have anything that we can adopt to strengthen our existing processes. And then, together we'll just put our shoulders behind the wheel and grow. What are your next steps in this process? Establish a TSA, a transaction services agreement to ensure a smooth transition of all back office, IT, and corporate overhead support while we are establishing this independently. Ed Mullen CEO, Cyprexx Services LLC Get to Know Industry Executives Beyond the Boardroom

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