Nationstar Mortgage LLC, a wholly-owned subsidiary of Nationstar Mortgage Holdings Inc., has signed a definitive agreement to acquire approximately $10.4 billion in residential mortgage servicing rights, as measured by unpaid principal balance, from Bank of America. The acquired servicing portfolio consists entirely of loans in government-sponsored enterprise (GSE) pools. Nationstar will fund a portion of the MSR purchase price with the proceeds of a 65 percent co-investment by Newcastle Investment Corporation. Nationstar expects the loans to transfer from Bank of America in July 2012.
Nationstar currently services more than 635,000 residential mortgages totaling nearly $103 billion in unpaid principal balance. In addition, Nationstar operates an integrated loan origination platform, enabling it to both mitigate its servicing portfolio run-off and improve credit performance for loan investors.
In mid-May, Nationstar agreed to purchase the residential mortgage servicing assets and other assets from Residential Capital LLC and related entities (ResCap). With the ResCap acquisition, Nationstar added more than 2.4 million customers to a customer base of more than one million, while growing its total servicing and sub-servicing book to approximately $550 billion.