Nationstar Mortgage said it is developing a programmatic Term ABS issuance program which will allow it to efficiently finance current and future acquisitions of Agency and non-Agency servicing advance assets.

“We intend to access the ABS markets frequently as we execute on our stated goal to lower advance expenses to drive further gains in servicing profitability,”said Jay Bray, Nationstar’s CEO.

Nationstar's plan falls into a broader trend developing in the securitization market where increasingly non-bank servicers will set up master trust features for servicer advance securitization deals. According to panelists speaking today at the American Securitization Forum's 2013 Las Vegas conference, such a structure would allow for multiple issuance for what has emerged as a "solid asset class."

Nationstar said today in a press release that it priced its $300 million, first ever Agency servicer advance asset-backed term notes, issued under series 2013-VF1 and 2013-T1.

The 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. It's the issuers first time ever Agency servicer advance securitization.

The issuer said that the notes carry a weighted average fixed interest rate of 1.46% and a weighted average term of 3.0 years. The Notes will replace $300 million in existing Agency servicing advance facilities that carried a weighted average floating rate of Libor plus 2.86%, or 3.10% in total, resulting in a reduction in rate of 1.65% as of January 24, 2013.

Barclays Capital acted as the lead manager for the offering. Wells Fargo Securities, Credit Suisse Securities and RBS Securities acted as co-managers for the offering. The deal is expected to close on Jan. 31.







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