""Nationstar Mortgage LLC"":https://www.nationstarmtg.com/, a wholly-owned subsidiary of Nationstar Mortgage Holdings Inc., ""announced"":http://www.businesswire.com/news/home/20120605005544/en/Nationstar-Mortgage-Announces-Definitive-Agreement-Acquire-10.4 Tuesday that it reached a deal with ""Bank of America"":http://promo.bankofamerica.com/multiproduct/index2.html?cm_mmc=EBZ-EnterpriseBrand-_-Google-PS-_-bank%20of%20america-_-Bank%20Of%20America%20Exact to acquire residential mortgage servicing rights for a portfolio with $10.4 billion in unpaid principal balance. The entire portfolio is backed by the GSEs.[IMAGE]
The deal was struck with a co-investment from New York-based ""Newcastle Investment Corp."":http://www.newcastleinv.com/ Newcastle's $44 million contribution toward the purchase price of the portfolio comes with the rights to 65 percent of the proceeds Nationstar acquires from servicing the loans.
This is the latest deal in a recent trend as some large banks look to unload some of their servicing portfolios amid uncertainty in the market and increased regulatory demands.
""The financial institutions are looking very hard at reducing their residential exposure and reducing their overall servicing portfolio, and we've been one of the big beneficiaries of that and we think that the trend is going to continue,"" Jay Bray, Nationstar's CEO said in an investor conference Tuesday, according to the ""_Wall Street Journal._"":http://online.wsj.com/article/BT-CO-20120605-708213.html?mod=WSJ_qtoverview_wsjlatest
Nationstar recently acquired ""Residential Capital LLC's"":https://www.rescapholdings.com/ mortgage portfolio when the company filed bankruptcy in ""mid-May."":https://themreport.com/articles/rescap-files-chapter-11-with-nationstar-to-acquire-2012-05-14
At the time, ResCap held $374 billion in mortgage servicing assets, $201 billion in primary residential servicing rights, and $173 billion in subservicing contracts.
Nationstar also reached a deal to acquire ""MetLife's"":http://www.metlife.com/campaign/search/life-insurance-quote/index.html?WT.srch=1&WT.mc_id=cs088864&pagefrom=MLPS_life-insurance&gclid=CLfCqPnbt7ACFalgTAodb1rAPA reverse mortgage origination business when the insurer decided to exit the reverse mortgage sector in ""late April."":https://themreport.com/articles/metlife-exits-reverse-originations-selling-portfolio-to-nationstar-2012-04-27
The Texas-based servicer's current portfolio totals almost $103 billion in unpaid principal balance.
In addition to servicing, Nationstar also offers integrated loan origination services.
Nationstar expects to receive the portfolio in July.