Nationstar to Raise $200 Million in Capital, Eyes More Servicing Acquisitions

Nationstar Mortgage Holdings (NYSE: NSM) today announced it has priced $200 million in senior notes that will be issued for corporate use including future servicing acquisitions. 

The company has risen to become one of the nation’s largest mortgage servicers, currently counting more than 1.8 milion mortgages and more than $300 billion in unpaid principal balance. It purchased Bank of America’s reverse mortgage servicing rights upon the company exiting the business in 2011 as well as the rights to MetLife’s reverse mortgage servicing portfolio when MetLife shuttered its reverse lending department in 2012. 

The offering of the $200 million in notes comes following an initial offering of $150 million in notes announced earlier Thursday, after Nationstar received significant demand in response. Nationstar said it will use the proceeds from the offering for purposes including the potential acquisition of additional servicing rights. 

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“The Issuers will use the net proceeds from this offering for general corporate purposes, which may include future acquisitions and transfers of servicing portfolios, including, but not limited to, the acquisition of certain residential mortgage servicing assets from Bank of America, National Association, and/or related businesses from third parties, including, but not limited to, from one or more affiliates of the initial purchasers in this offering,” the company stated.

Written by Elizabeth Ecker

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  • Nationstar may be getting too big to fast. Too much growth through acquisition is not usually a good thing. I received a call from an old Metlife customer who told me they have not received a monthly statement in several month’s and had no idea Nationstar was their current servicer.

    • treverse,

      Growing fast can be a great thing. JD Rockefeller seemed to do OK with it.

      As to your “old” Metlife customer, could the HECM be in assignment or in default servicing where the servicer could be different?

      Besides some of the Nationstar servicing may be done through subservicers so that Nationstar would appreciate knowing if their subcontractors are meeting their contract requirements.

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