Nationstar Issues Fifth Securitization of Inactive Reverse Mortgages

Nationstar Mortgage recently issued its latest securitization of nonperforming Home Equity Conversion Mortgages (HECMs), making this the company’s fifth transaction backed by inactive reverse mortgages.

Nationstar HECM Loan Trust 2016-2 (NHLT 2016-2) comprises first-lien inactive HECMs covered by FHA insurance to individuals secured by properties in the U.S., along with real estate owned (REO) properties acquired through conversion of ownership of reverse mortgage loans covered by FHA insurance.

The 1,038 mortgage assets included in the deal comprise 859 HECM loans and 179 REO properties. In total, the size of aggregate collateral is approximately $221.2 million, with the HECM loan portion comprising an aggregate balance of $190.1 million and REO properties $31 million.

Nationstar acquired the mortgage assets from Ginnie Mae sponsored HECM mortgage-backed (HMBS) securitizations.

NHLT 2016-2 follows a similar transaction from Nationstar earlier this year, NHLT 2016-1, which comprised 1,085 inactive HECM loans with a balance of approximately $302.9 million. Mortgage assets in this deal included loans that were either in default, due and payable, foreclosure or REO status.

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