Nationstar Mortgage Holdings announced today that it entered into a subservicing agreement with New Residential Mortgage, a wholly owned subsidiary of New Residential Investment, a leading investor in mortgage servicing related assets.
Nationstar anticipates subservicing up to $97 billion UPB mortgage loans underlying the mortgage servicing rights that New Residential agreed to purchase from CitiMortgage.
Several reports say this will end mortgage servicing for Citi. Further, these mortgages are backed by Fannie Mae and Freddie Mac. As such, the deal will require approval from the regulator, the Federal Housing Finance Agency.
“This announcement further demonstrates Nationstar’s role as a leading subservicing provider to the residential mortgage servicing market. We look forward to welcoming over 750,000 customers to Nationstar, and believe our strategic relationship with New Residential will create meaningful value for these customers and our shareholders,” said Jay Bray, Chairman and Chief Executive Officer of Nationstar, said in a statement.
Nationstar expects the MSRs to board beginning in the second quarter of this year and continue boarding throughout 2017.
The announcement is in lockstep with the big bank gradually exiting the mortgage business.