Nationstar Mortgage (NYSE: NSM), which has recently made a strong name for itself in the reverse mortgage servicing arena, said this week it is raising capital to purchase more servicing rights.
The company and its subsidiaries plan to sell $400 million in senior notes in order to purchase additional servicing portfolios from companies including Bank of America, National Association and others.
“The Issuers will use the net proceeds from this offering for general corporate purposes, which may include future acquisitions and transfers of servicing portfolios,” the company stated.
Over the past two years, Nationstar has purchased MetLife’s reverse mortgage servicing rights as well as the $18 billion in rights to Bank of America’s reverse mortgage portfolio in December 2011. The company’s plans appear to be continuing on the path of additional market share in 2013.
Currently, the company’s servicing portfolio includes more than 1.8 million residential loans comprising more than $300 billion in unpaid principal balance as of 2013.
Written by Elizabeth Ecker