Congratulations to all the graduates in Lodi and surrounding areas, you did it! You are moving forward to high school, college or starting a new career. What an accomplishment for you. Good luck to all of you in your new venture.
Nationstar bought $10.4 billion in mortgage servicing rights from Bank of America.
The portfolio is made up of Fannie Mae and Freddie Mac mortgages. Nationstar funded a portion of the purchase from a 65 percent co-investment from Newcastle Investment Corp. The loans are expected to transfer to the Texas servicer in July. Nationstar also agreed to purchase $201 billion in MSRs (Mortgage Servicing Rights) from the bankrupt Residential Capital last month.
The deal is pending court approval. Should the Residential Capital deal go through, Nationstar will become the largest non-bank mortgage servicer in the country when its largest deals close in December.
Nationstar will service mortgages held by more than 3.4 million borrowers. It also acquired $63 billion in servicing assets from Aurora Bank in March. This is a large portfolio for Nationstar to get.
It also bought a reverse mortgage-servicing portfolio from MetLife in April. Wow, talk about something going big! It made many acquisitions from firms looking to shrink their portfolios or exit the business altogether.
Nationstar CEO Jay Bray said, “The firm is not done acquiring new servicing, I think you’ll see more of that to come.” Bray also said, “the agreements mean loans will move to Nationstar once it hits a certain delinquency status, sometimes at 45 days past due. He said, “Nationstar looks to board more loans, probability of keeping the mortgages current or solving the delinquency as the key driver of profitability. So if you get a phone call from someone that says they are from Nationstar, don’t be surprised.
Remember the 5 largest banks that were going to restructure their loan modifications? According to the Treasury Department, All Home Affordable Modification Program mortgage servicers began taking applications under the expanded program on June 1.
The largest mortgage servicers will still need several months before fully implementing the new guidelines announced in January. Those whose loans are serviced by Bank of America will have to wait until October to access the entire new program, the Treasury said Wednesday. JPMorgan
Chase will fully implement the changes by September. Both banks account for more than 300,000 active modifications under the program, more than one-third of all active workouts under HAMP.
Other servicers are making quicker progress. Wells Fargo told Treasury it will have the program fully implemented by June 22.
Ally Financial said it would be done by July 10.
Citi Mortgage, the servicing arm of Citigroup said it already installed the program. Treasury said it imposed new requirements to ensure those borrowers who send in their requests to be considered for the expanded version of HAMP are not impacted by the delay. Servicers must identify which loans could be eligible for the expanded assistance, stop foreclosure referrals or sales on the borrowers and ensure they are given a single point of contact at the bank.
Have a great week.
Diane is the President of the Lodi Association of Realtors and can be reached at firstname.lastname@example.org.