Nationstar Mortgage Holdings Inc. (NYSE: NSM) announced today that
Nationstar Mortgage LLC, an indirectly-held, wholly-owned subsidiary,
has completed the acquisition of approximately $63.7 billion in
residential mortgage servicing rights ("MSRs"), as measured by unpaid
principal balance, and certain other assets from Aurora Bank FSB and its
wholly owned subsidiary Aurora Loan Services LLC (collectively,
"Aurora"), a subsidiary of Lehman Brothers Bancorp Inc. The composition
of the Aurora portfolio is approximately 75% non-conforming loans in
private label securitizations and approximately 25% conforming loans in
GSE pools. With this acquisition Nationstar has grown its servicing book
to approximately $177 billion, representing approximately one million
customers. Nationstar funded a portion of the MSR purchase price with
the proceeds of a 65% co-investment by Newcastle Investment Corp.
"The closing of the Aurora acquisition represents another exciting
milestone in Nationstar's history and adds to our track record of
successfully integrating servicing portfolios," said Nationstar CEO Jay
Bray. "We remain focused on our performance-based servicing model that
provides exceptional service and the benefit of Nationstar's extensive
resources to help customers achieve and preserve homeownership."
Keefe Bruyette & Woods, Inc. and Deutsche Bank Securities Inc. served as
financial advisors to Aurora. Sidley Austin LLP served as legal advisor
to Nationstar Mortgage LLC and Arnold & Porter LLP served as legal
advisor to Aurora.
About Nationstar Mortgage Holdings Inc.
Based in Lewisville, Texas, Nationstar currently services approximately
one million residential mortgages totaling approximately $177 billion in
unpaid principal balance. In addition, Nationstar operates an integrated
loan origination platform, enabling it to both mitigate its servicing
portfolio run-off and improve credit performance for loan investors.
Nationstar currently employs over 3,500 people, entirely based in the
This press release contains forward-looking statements that are based on
assumptions and existing information and involve certain risks and
uncertainties that could cause actual results to differ materially from
future results expressed or implied by such forward-looking statements.
Important factors that could affect these statements include, but are
not limited to, the impact of the ongoing implementation of the
Dodd-Frank Act on Nationstar's business activities and practices, costs
of operations and overall results of operations; the impact on
Nationstar's servicing practices of enforcement consent orders and
agreements entered into by certain federal and state agencies against
the largest mortgage servicers; increased legal proceedings and related
costs; the continued deterioration of the residential mortgage market,
increase in monthly payments on adjustable rate mortgage loans, adverse
economic conditions, decrease in property values and increase in
delinquencies and defaults; the deterioration of the market for reverse
mortgages and increase in foreclosure rates for reverse mortgages;
Nationstar's ability to efficiently service higher risk loans;
Nationstar's ability to compete successfully in the mortgage loan
servicing and mortgage loan originations industries; Nationstar's
ability to scale-up appropriately and integrate the assets, employees,
operations and platforms related to the Transaction; Nationstar's
ability to obtain sufficient capital to meet its financing requirements,
including, but not limited to, our ability to obtain advance finance
facilities sufficient to fund the purchase price for this acquisition;
changes to federal, state and local laws and regulations concerning loan
servicing, loan origination, loan modification or the licensing of
entities that engage in these activities; and the loss of Nationstar's
licenses. These factors and other risks and uncertainties are discussed
in Nationstar's annual report on Form 10-K for the fiscal year ended
December 31, 2011 and its quarterly report on Form 10-Q for the fiscal
quarter ended March 31, 2012, in each case as filed with the SEC, and
any additional periodic reports Nationstar files with the SEC.
Nationstar Mortgage Holdings Inc.