Brian Geller

Corporate Recruiter  -  Nationstar Mortgage (NYSE: NSM)
Irving, TX
972-956-6769

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Overview

Nationstar Mortgage (“Nationstar”), headquartered in Lewisville, Texas, just outside of Dallas, is a leading residential

mortgage loan servicer and one of the largest non-bank servicers in the United States as measured by aggregate principal

balance of loans serviced.   In addition to its core servicing business, Nationstar originates conforming, Fannie Mae, FHA,

FHLMC, VA, Jumbo and USDA residential mortgage loans.  Since its inception in 1997, Nationstar has experienced

success by providing exceptional customer service and a wide range of competitive mortgage-related services.

  • Nationstar went public in the largest U.S. IPO of the year-to-date in March 2012.  Nationstar raised approximately $268 million in equity capital and currently has a market capitalization of approximately $3.5 billion. 
  • Nationstar was the 5th best-performing IPO in 2012 out of 128 in total and was the 3rd best performing IPO on the NYSE.
  • Nationstar offers strong transparency to partners and investors, and is a public filer of financial statements, including 10-Qs/Ks, 8-Ks, etc.
  • Nine Wall Street investment banks provide equity research coverage on Nationstar. 
  • As of September 30, 2012 Nationstar serviced loans totaling more than $198 billion, which reflects a 82% annual compound growth rate since 2008. 
  • In June 2012, Nationstar completed the acquisition of approximately $63 billion in servicing assets from Aurora Bank.
  • In December 2012, Nationstar announced the acquisition of $215 billion in servicing assets from Bank of America, which upon closing will make Nationstar the 5th largest servicer in the U.S with a pro-forma servicing portfolio of $425 billion.
  • To grow the servicing portfolio, the company also originates mortgages directly to consumers as well as through retail and  wholesale/correspondent lending channels. Nationstar originated over $7.2 billion in loans in the third quarter of 2012 on an annualized basis.  (Mortgage loans are subsequently sold to the GSEs and FHA/VA.)
  • Nationstar is one of a few non-bank servicers in the U.S. with a fully integrated origination platform, which replenishes portfolio runoff and creates servicing assets at an attractive multiple.
  • Nationstar employs over 4,100 mortgage professionals.

Nationstar’s majority shareholders are funds managed by Fortress Investment Group LLC, a private equity firm with $50+ billion in assets under management.  Once a subsidiary of homebuilder Centex, Nationstar was acquired by Fortress-managed funds in 2006. At the time of the transaction, Nationstar (then named Centex Home Equity) was a subprime lender.  Like many of its peers, Nationstar exited the subprime lending business in late 2007 and is now one of the leading servicers in the mortgage business. 

As major banks exit or scale back from the mortgage servicing business due to a refocus on core customers, capital requirements, and regulatory scrutiny, Nationstar has grown its business and capitalized on this historic opportunity in the servicing business.  Nationstar’s growth is reflected in its 84% compound annual growth rate in AEBITDA since 2008.  Nationstar’s last reported quarter delivered $1.1 billion in revenue (Q3’12 annualized) and $492 million in EBITDA (Q3’12 annualized).

Nationstar’s business model produces recurring, fee-based revenues based upon contractually established servicing fees, and Nationstar is exposed to minimal credit risk with respect to loans serviced.  Nationstar maintains substantial levels of funding and liquidity through multiple capital and funding sources, including major financial institutions and investment banks.

Specialties

Banking/Real Estate/Mortgage Professionals