Seneca Mortgage Servicing Awards Nationstar $50 Billion Subservicing
DALLAS–(BUSINESS WIRE)–Nationstar Mortgage Holdings Inc. (NYSE: NSM) has been selected by Seneca Mortgage Servicing LLC (“Seneca”) as the subservicer for existing and future acquisitions of mortgage servicing rights (“MSRs”) held by Seneca. Based near Buffalo, New York, Seneca currently owns approximately $50 billion in MSRs comprised primarily of Fannie Mae and Freddie Mac residential mortgages. Along with the subservicing, Nationstar will expand its presence in the northeast as the Company assumes Seneca’s existing site, including many highly skilled team members involved in the servicing of the existing portfolio.
“Since entering the MSR space in 2014, Seneca’s development into a top non-bank mortgage servicer has been a testament to our Buffalo platform and committed employees who helped us achieve that growth,” said Bharat Bhatt, Seneca’s Chairman of the Board. “We are pleased to partner with an experienced and respected subservicer in Nationstar, a company with similar roots and a strong commitment to serving its customers. They are the best partner for Seneca’s existing customers and for our continued growth as we add MSRs to our portfolio through flow and bulk acquisitions.”
“We continue to demonstrate the strength of our industry-leading mortgage servicing platform,” said Jay Bray, President and Chief Executive Officer of Nationstar Mortgage. “Subservicing has become a powerful growth vehicle for Nationstar driven by our focus on the customer and continual investments in technology, process, and compliance. Seneca’s highly-regarded team will help advance our subservicing growth strategy and we are excited to welcome them to the Nationstar family.”
The Seneca subservicing will be in addition to the previously announced $55 billion private label subservicing partnership. Subserviced portfolios leverage the existing infrastructure, require minimal capital outlay and provide an attractive source of growth. Nationstar currently anticipates its total servicing portfolio to consist of over $100 billion in subserviced portfolios by year-end.
This transaction will be subject to regulatory approvals and final closing items. Barclays and Houlihan Lokey served as financial advisors and Sullivan & Cromwell LLP and Alston & Bird LLP acted as legal advisors to Seneca. Sidley Austin LLP acted as legal advisor to Nationstar.
About Seneca Mortgage Servicing LLC
Seneca is a nationally licensed residential mortgage servicer specializing in prime and special servicing. A wholly owned subsidiary of Seneca Mortgage Investments LP, Seneca acquires and services the MSRs for a diverse portfolio of government-sponsored and investor loans. A Fannie Mae, Freddie Mac, Ginnie Mae, HUD and VA approved mortgage servicer, Seneca utilizes an experienced and forward-thinking management team, effective operational processes and consistent investment in technology to provide best-in-class service for borrowers.
About Nationstar Mortgage LLC
Based in Dallas, Texas, Nationstar provides quality servicing, origination and transaction based services related principally to single-family residences throughout the United States. Additional corporate information is available in the Shareholder Relations section of www.nationstarmtg.com.