Businessweek

Nationstar Mortgage Holdings Inc., through its subsidiary, Nationstar Mortgage LLC, operates as a real estate services company in the United States. The company engages primarily in servicing residential mortgage loans for others, and the origination and selling or securitization of single-family conforming mortgage loans to government-sponsored entities or other third-party investors in the secondary market. The company’s servicing portfolio consisted of approximately 1.1 million loans as of December 31, 2012. It services mortgage loans in all 50 states, and it is licensed as a residential mortgage loan servicer/originator and debt collector in all states that require such licensing. In addition to its core servicing business, the company originates primarily conventional agency (Fannie Mae and Freddie Mac, collectively the government-sponsored enterprises) and government (Federal Housing Administration and Department of Veterans Affairs) residential mortgage loans. The company offers a range of servicing capabilities across the residential mortgage spectrum, including servicing, origination, and real estate services provided to financial institutions and consumers. Its integrated loan origination business mitigates servicing portfolio runoff and improves credit performance for investors. Loan Servicing Loan servicing primarily involves the calculation, collection and remittance of principal and interest payments, the administration of mortgage escrow accounts, the collection of insurance claims, the administration of foreclosure procedures, the management of real estate owned (REO), and the disbursement of required protective advances. The company’s service loans as the owner of mortgage servicing rights (MSRs), which it refers to as ‘primary servicing’, and it also services loans on behalf of other MSR or mortgage owners, which it refers to as ‘subservicing’. The company also services reverse mortgages. In 2012, the company acquired the MSRs related to various portfolios of reverse residential mortgage loans. Reverse mortgages provide seniors (62 years and older) with a loan secured by their home. The majority of reverse mortgages is secured by the Federal Housing Administration and is referred to as Home Equity Conversion Mortgages. In addition to the company’s core servicing business, it operates a suite of adjacent businesses, which the company calls Solutionstar, designed to meet the changing needs of the mortgage industry. These businesses offer a range of ancillary services, including providing services for delinquent loans, managing loans in the foreclosure/REO process and providing title insurance agency, loan settlement, and valuation services on newly originated and re-originated loans. It offers these adjacent services in connection with loans that the company services, as well as on a third-party basis in exchange for base and/or incentive fees. Loan Originations The company’s originations business provides a servicing portfolio retention source by providing refinancing services to its existing servicing customers; an organic source of servicing assets at attractive pricing; and a loss mitigation solution for its servicing clients and customers by offering refinancing options to borrowers allowing them to lower their monthly payments, which might lower their risk of defaulting. The company primarily originates conventional agency and government mortgage loans, and it is licensed to originate residential mortgage loans in 49 states and the District of Columbia. Legacy Assets and Other The company also has a legacy asset portfolio, which consists primarily of non-prime and nonconforming residential mortgage loans. Acquisitions In 2012, the company acquired Aurora Bank FSB and Aurora Loan Services LLC. Strategy The company’s originations strategy is predicated on creating loans that are readily sold into a liquid market either through securitizations backed by the government-sponsored enterprises on a servicing retained basis, or through servicing released whole loans sales to major conduit investors. History Nationstar Mortgage Holdings Inc. was founded in 1994 in Denver, Colorado.