Lewisville, Texas-based Nationstar Mortgage Holdings Inc. has announced that its subsidiary Nationstar Mortgage LLC has signed a definitive agreement to acquire approximately $215 billion in residential mortgage servicing rights (MSRs), as measured by unpaid principal balance (UPB) as of Nov. 30, 2012, and certain other assets from Bank of America.
According to Nationstar, approximately 47% of the servicing portfolio, as measured by UPB, consists of loans that are owned, insured or guaranteed by Fannie Mae, Freddie Mac and Ginnie Mae, with approximately 53% of the portfolio consisting of loans in private-label securitizations. With this transaction, Nationstar anticipates adding more than 1.3 million customers to an existing customer base of 1.2 million.
The purchase price for the MSRs is approximately $1.3 billion. The MSR portfolio purchases will close as investor and other third-party approvals are received, which Nationstar expects the majority to occur in the first quarter of this year. In addition to the MSRs, Nationstar will be acquiring approximately $5.8 billion in related servicing advance receivables as the associated portfolios are boarded during this year. Nationstar expects to enter into third-party financing agreements to fund the servicing advances.
‘This landmark transaction is a testament to our employees and their record of servicing performance and the support of our business partners,’ says Nationstar CEO Jay Bray. ‘This transaction builds upon our strong track record of portfolio acquisitions and is further validation of our strategy to drive profitability over the entire economic cycle through our servicing, solutions and origination businesses.’