With its latest planned acquisition of mortgage servicing rights, Nationstar Mortgage LLC has secured its place among the eight-biggest U.S. residential servicers. If all goes well with its bid to acquire servicing assets from Residential Capital LLC — then its ranking will improve three notches.
Parent Nationstar Mortgage Holdings Inc. disclosed Tuesday that an agreement has been reached to acquire $10.4 billion in residential mortgage servicing rights.
The seller in the transaction:Â Bank of America, N.A.
The acquisition includes loans in Fannie Mae and Freddie Mac pools.
The Lewisville, Texas-based company expects the loans to be transferred next month.
Sister company Newcastle Investment Corp. will be a 65 percent co-investor in the transaction.
Nationstar already services 635,000 loans for $103 billion. Including its pending acquisition of servicing rights from Aurora Bank FSB, the BofA transaction will bring its servicing portfolio to around $176 billion — making it the eighth-largest residential servicer in the country.
Nationstar servicing portfolio as of March 31 |
$103 billion |
|
Aurora Bank acquisition | $63 billion | |
BofA acquisition
|
$10 billion
|
|
total | $176 billion | |
ResCap acquisition
|
$201 billion
|
|
total
|
$277 billion
|
But if Nationstar is successful in its bid to acquire $201 billion in primary mortgage servicing rights from bankrupt ResCap — Nationstar will replace ResCap-parent Ally Financial Inc. as the fifth-largest residential mortgage servicer in the country based on data maintained by Mortgage Daily.
Rank |
Company |
Servicing Portfolio |
||
1. |
Wells Fargo |
$1,840 |
||
2. | BofA (excl. Nationstar sale) | $1,691 | ||
3. | Chase | $1,077 | ||
4. | Citigroup | $622 | ||
5. | Ally | $338 | ||
6. | U.S. Bancorp | $256 | ||
7. | PHH | $185 | ||
8. | Nationstar (incl Aurora/BofA acq) | $176 | ||
9. | PNC | $172 | ||
10.
|
SunTrust
|
$155
|
Nationstar Holdings completed an initial public on March 8 at an offering price of $14. But shares have since climbed past $19 despite that U.S. stocks in general have fallen to their lowest levels this year.