Following the purchase of MetLife’s reverse mortgage servicing rights in April and $18 billion in reverse mortgage servicing rights from Bank of America in December 2011, Nationstar Mortgage this week again boosted its servicing presence through the purchase of more Bank of America servicing—this time on the forward side.
Nationstar announced this week it has agreed to purchase $10.4 billion in residential mortgage servicing rights from Bank of America, growing its presence as a servicer. The company now lays claim to becoming the largest residential mortgage servicer in the U.S.
The company’s portfolio now consists of more than 1 million residential mortgages, according to a recent investor presentation before KBW’s mortgage finance conference, with an “addressable market” of 60 million customers.
“There continues to be a lot of pressure on financial institutions, a lot of pressure from a regulatory standpoint, from a customer-service standpoint, from a … capital standpoint,” said Jay Bray, chief executive of Nationstar, at an investor conference Tuesday, as reported by the Wall Street Journal. “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 trend is going to continue.”
The servicer already has agreements to add more than $430 billion of mortgage servicing rights, according to the Wall Street Journal report.
Written by Elizabeth Ecker