Nationstar Mortgage plans a $900mn mortgage servicer advance ABS transaction this month, according to a Standard & Poor’s presale report.
The series 2013-VF1, 2013-T1, and 2013-T2 notes are backed by servicer advances and servicing fee advance receivables made on mortgage loans backed by Freddie Mac, which the servicer services according to Freddie Mac's servicing guide.
According to S&P, the initial collateral sold to Nationstar included approximately $30 million in advance receivables related to the Freddie Mac-insured loans. The loan portfolio on which the advances were made represents approximately $10 billion in outstanding loan balances of the Bank of America legacy assets, which are now serviced by Nationstar.
On Jan. 7, Nationstar Mortgage announced it acquired around $215 billion in residential mortgage servicing rights, from Bank of America. Nearly 47% of the portfolio comprised of loans that are owned, insured or guaranteed by Fannie Mae, Freddie Mac and Ginnie Mae, with some 53% of the portfolio including loans in private-label securitizations.
The capital structure on Nationstar's latest deal includes four classes of variable funding notes and 12 classes of term notes that are secured, limited-recourse obligations of the issuer. The deal is expected to close on Jan. 31.