Nationstar Announces Launch of Capital-Light Servicing Acquisition Structure & Investor Call to Discuss Structure

  Nationstar Announces Launch of Capital-Light Servicing Acquisition Structure
  & Investor Call to Discuss Structure

Business Wire

LEWISVILLE, Texas -- December 18, 2013

Nationstar Mortgage Holdings Inc. (NYSE:NSM):

  *Initial transaction: sale of advances of $3.2 billion with potential for
    up to $6.3 billion
  *Related sale of RMSRs on $58 billion of UPB with potential for up to $130
    billion of UPB
  *Unlocks up to $681 million in advance equity to be redeployed into
    high-return opportunities
  *Increases balance sheet efficiency with a low-cost structure that can be
    deployed on future acquisitions
  *Eliminates advance interest expense and future advance obligations on
    transaction portfolio
  *Generates long-term, fee-based revenue streams to Nationstar

Nationstar Mortgage Holdings Inc. (NYSE:NSM) (“Nationstar”) announced today
the launch of a new, capital-light servicing acquisition structure. Nationstar
Mortgage LLC, a wholly-owned subsidiary, agreed to sell to New Residential
(NYSE:NRZ) and other investors (“NRZ”) servicing advances of $3.2 billion with
potential for up to $6.3 billion. Nationstar agreed to sell the related rights
to mortgage servicing rights (“RMSRs”) of approximately $58 billion of unpaid
principal balance (“UPB”) with potential for up to $130 billion of UPB.

These transactions are the first of a series in Nationstar’s planned strategic
initiative to launch a low-cost, capital-light acquisition structure. These
transactions enable Nationstar to unlock advance equity of $362 million, with
total potential of up to $681 million for redeployment into high return
opportunities. In addition to reducing Nationstar’s advance funding interest
expense, Nationstar has also transferred the obligation to fund the future
servicing advances of the portfolios to NRZ, improving Nationstar’s balance
sheet efficiency.

The total sale price to Nationstar is $3.2 billion, with a total potential of
up to $6.3 billion at substantially the same terms. Nationstar intends to use
the proceeds for general corporate purposes, including new servicing portfolio
acquisitions and potentially retiring corporate debt.

“We are excited for the strategic possibilities this innovative acquisition
structure opens up for Nationstar,” said Nationstar CEO Jay Bray. “For several
quarters, we have been working rigorously to evaluate capital structure
alternatives for acquisitions to unlock Nationstar’s growth potential.
Nationstar is pleased to announce this transformational deal with NRZ and
leading investors, and we look forward to structuring future servicing
portfolio acquisitions with this low-cost, fee-for-service model.”

Nationstar will continue to service the loans in the transaction portfolios.
Nationstar will receive a base servicing fee and will have the ability to earn
additional fees based on the performance of the portfolio. In addition, other
fees in excess of NRZ’s targeted return will be split equally between
Nationstar and NRZ. Nationstar continues to retain all ancillary,
Solutionstar, and originations revenue. The transaction servicing portfolios
consist of non-agency residential mortgage loans.

Conference Call Webcast and Investor Presentation

Chief Executive Officer, Jay Bray, and Chief Financial Officer, David Hisey,
will host a conference call for investors and analysts to discuss the sale and
other general business matters at 11:00 a.m. (ET) on Wednesday, December 18,
2013. To listen to the event live, or in an archive which will be available
for 14 days, visit Nationstar's website at The conference call will also be
accessible by dialing 1-877-299-4454, or 1-617-597-5447 internationally.
Please use the participant passcode 65717518 to access the live conference
call. An investor presentation will also be available at A replay of the conference call will
be available for approximately two weeks by dialing 1-888-286-8010, or
1-617-801-6888 internationally, using the participant passcode 22834787.

About Nationstar Mortgage Holdings Inc.

Based in Lewisville, Texas, Nationstar offers servicing, origination, and real
estate services to financial institutions and consumers. Nationstar is one of
the largest servicers in the United States and operates an integrated loan
origination business that mitigates servicing portfolio run-off and improves
credit performance for loan investors. Our Solutionstar business unit offers
asset management, settlement, and processing services. Additional corporate
information is available at

Forward Looking Statements

Any statements in this release related to our launch of a capital-light
servicing acquisition structure, including without limitation references to
amounts of and plans for unlocked advance equity, projected efficiencies, use
of proceeds, expected amounts and timing of future closings and other
potential acquisitions, that are not historical or current facts are
forward-looking statements. Forward-looking statements convey our current
expectations or forecasts of future events. Forward-looking statements involve
known and unknown risks, uncertainties and other factors that may cause our
actual results, performance, or achievements to be materially different from
any future results, performances or achievements expressed or implied by the
forward-statements. Certain of these risks and uncertainties are described in
the “Risk Factors” section of our most recent annual and quarterly reports and
other required reports as filed with the SEC, which are available at the SEC’s
website at Unless required by law, we undertake no
obligation to publicly update or revise any forward-looking statements to
reflect circumstances or events after the date of this press release.


Nationstar Mortgage Holdings Inc.
Marshall Murphy, 469-549-3005
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