FOR IMMEDIATE RELEASE
Contact: Marshall Murphy
(469) 549-3005
Nationstar Mortgage Announces Definitive Agreement to Acquire $10.4 Billion in
Servicing Assets
Lewisville, TX (June 5, 2012) - Nationstar Mortgage Holdings
Inc. (NYSE: NSM) announced today
that Nationstar Mortgage LLC, a
wholly-owned subsidiary, 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, National Association ("BANA"). 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% co-investment by Newcastle Investment Corp.
Nationstar expects the loans to transfer from BANA in July
2012.
About Nationstar Mortgage Holdings Inc.
Based in Lewisville, Texas, Nationstar currently services
over 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. Nationstar currently employs
approximately 2,600 people, entirely based in the United
States.
Forward-Looking Statements
This press release contains forward-looking statements that
are based on assumptions and existing information and involve
certain risks and uncertainties that could cause actual
results to differ materially from future results expressed or
implied by such forward-looking statements. Important factors
that could affect these statements include, but are not
limited to, the impact of the ongoing
implementation of the Dodd-Frank Act on Nationstar's business
activities and
practices, costs of
operations and overall results of
operations; the impact on Nationstar's servicing practices
of
enforcement consent orders and agreements entered into by
certain federal and state agencies against
the largest mortgage servicers;
increased legal proceedings and related costs; the
continued
deterioration of the residential mortgage market, increase in
monthly payments
on adjustable rate
mortgage loans, adverse economic conditions, decrease in
property values and increase in delinquencies and defaults;
the deterioration of the market for reverse mortgages and
increase in foreclosure rates for reverse mortgages;
Nationstar's ability to efficiently service higher risk
loans;
Nationstar's ability to compete successfully in the mortgage
loan servicing
and mortgage loan
originations industries; Nationstar's ability to scale-up
appropriately and integrate the assets,
employees, operations and platforms related to the
Transaction; Nationstar's ability to obtain sufficient
capital to meet its financing requirements, including, but
not limited to, our ability to obtain advance finance
facilities sufficient to fund the purchase price for this
acquisition; changes to federal, state and local laws and
regulations concerning loan servicing, loan origination, loan
modification or the licensing of entities that engage in
these activities; and the loss of Nationstar's licenses.
These factors and other risks and uncertainties are discussed
in Nationstar's annual report on Form 10-K for the fiscal
year ended December 31, 2011 and its quarterly report on Form
10-Q for the fiscal quarter ended March 31, 2012, in each
case as filed with the SEC, and any additional periodic
reports Nationstar files with the SEC.
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