U.S. residential mortgage backed securities serviced by Nationstar will recognize about $1 billion of losses as the result of loan modifications, according to Fitch Ratings.

Fitch said today that Nationstar has informed the ratings agency that it intends to revise the way it reports principal forbearance on loans whose servicing rights it acquired from Aurora Bank in 2012. This will result in approximately $1 billion in losses for RMBS collateralized by these loans, with the revision likely to occur in the July distribution.

Subscribe Now

Access to a full range of industry content, analysis and expert commentary.

30-Day Free Trial

No credit card required. Access coverage of the securitization marketplace, including breaking news updated throughout the day.