Fiserv, Inc. (NASDAQ:FISV) announced today that Sherman Financial Group, LLC recently began using the Fiserv PLUS™ credit management processing system to help support Sherman’s entry into the performing loan industry. New York-based Sherman Financial Group is an integrated company that purchases, services, resells and secures distressed and performing debt, including, but not limited to, credit card receivables, telecommunications receivables, student loans, mortgage deficiencies and all types of bankruptcy debt.
Sherman Financial Group is owned by management, Mortgage Guaranty Insurance (MGIC) Corporation and Radian Group, Inc. MGIC is a leading provider of private mortgage insurance in the United States, with a market capitalization of over $6.9 billion. Radian is the second largest provider of private mortgage insurance and risk management services with a market capitalization of over $2.8 billion.
Previously, Sherman concentrated solely on distressed consumer debt, amassing more than $8 billion in receivables since June 2002. Recently, the company added to its fold a portfolio of more than 50,000 performing (paying) consumer loans valued in excess of $100 million. The company was looking for an outsourcing customer receivable system on which to run its new business.
“I was familiar with the Fiserv platform and I knew the organization and its people,” said Jim Sadie, Director of Performing Consumer Loans at Sherman Financial. “We looked at a half dozen companies and their solutions, but Fiserv was a true winner because of its level of service, and quality of partnership and products. In addition, the software they run is extremely flexible and very broad in its use and applicability.”
“Fiserv is excited at this opportunity to support Sherman Financial Group as it expands its investment opportunities,” said Max Narro, President of Fiserv Credit Processing Services. “Sherman is a proven leader in managing client relations, pricing and reselling portfolios, and we are looking forward to assisting them with their growth plans for the future.”
Sherman Financial now has the ability to rapidly expand the buying and servicing of performing loans, Sadie said. “The very nature of the relationship with Fiserv will allow us to enhance and expand our growth by as much as 20% annually over the next five years,” he said.
Sherman Financial was impressed by the rapid implementation of the Plus System and the support from Fiserv.
“Just the fact that Fiserv supported such a rapid implementation and conversion was of immeasurable value,” Sadie said. “In the midst of this conversion, we had at least a dozen nights where their people worked into the early morning to get the job done. The portfolio acquisition could not have gone through without them stepping up to the plate as they did.”
The Fiserv PLUS™ System unites theVisionPLUS® credit processing software – the industry’s leading credit-processing solution – with decades of Fiserv information-processing expertise. This powerful mix of software and service provides a state-of-the-art foundation upon which businesses can build innovative private-label, revolving, bankcard, and installment credit programs.
Fiserv, Inc. is an independent, full-service provider of integrated data processing and information management systems to the financial industry. As a leading technology resource, Fiserv serves approximately 13,000 financial service providers worldwide, including banks, broker/dealers, credit unions, financial planners/investment advisers, insurance companies and agents, mortgage banks and savings institutions. Headquartered in Brookfield, Wisconsin, Fiserv also can be found on the Internet at www.fiserv.com.
The PLUS System is a trademark of Fiserv Solutions, Inc. in the U.S. and other countries. VisionPLUS is a trademark of PaySys International, Inc.
