Nationstar Mortgage Holdings Inc.
Nationstar Mortgage Holdings Inc., a Delaware corporation formed in 2011, including
wholly-owned subsidiaries (collectively, Nationstar or the Company), provides
servicing, origination and transaction based services principally to single-family
residences throughout the United States.
We are one of the largest residential loan servicers in the United States with
a demonstrated track record of improving asset performance. In addition, we
operate an integrated residential loan origination platform that is primarily
focused on customer retention. Our XomeSM subsidiary offers an array of complementary
services related to the purchase and disposition of residential real estate.
Our success ultimately depends on working with customers, investors and regulators
to deliver quality, compliant solutions that foster and preserve home ownership.
Customers include all residential real estate market participants (e.g., homeowners,
homebuyers, home sellers, investors, real estate agents). Investors principally
include government sponsored entities (GSEs) such as the Federal National Mortgage
Association (Fannie Mae or FNMA) and the Federal Home Loan Mortgage Corp (Freddie
Mac or FHLMC), investors in private label securitizations, Government National
Mortgage Association (Ginnie Mae or GNMA), as well as those that invest in mortgage
servicing rights (MSRs) and hire us to subservice. We are regulated both at
the Federal level and at the individual state level.
We conduct our operations through three operating segments: Servicing, Originations
and Xome. For financial information concerning our reportable segments see Note
20, Business Segment Reporting, in the Consolidated Financial Statements.
Servicing primarily involves loan administration, payment processing, mortgage
escrow account administration, collection of insurance premiums, response to
homeowner inquiries, loss mitigation solutions including loan modifications
and supervision of foreclosures and property dispositions on behalf of the owners
of the loans. These activities generate reliable and recurring revenues and
cash flows. Revenues primarily consist of servicing fees which are generally
expressed as basis points of the outstanding unpaid principal balance (UPB)
and ancillary revenues (e.g., late fees, modification fees, incentive fees).
We primarily market mortgage products to existing servicing customers and customers
of homebuilders as well as participate in the correspondent market. Since 2012,
we have been principally focused on refinance solutions for our existing servicing
customers. We earn an up-front fee for processing the loan application which
covers the costs of securing the loan application and underwriting. The loan
origination market is sensitive to interest rate movements as typically loan
applications increase as interest rates fall.
Xome (pronounced "Zome") is a residential real estate services and
technology company created to perfect the residential real estate transaction
experience for consumers and real estate professionals (including brokers and
agents) through service offerings. Xome intends to enhance the real estate buying
and selling experience through increased connectivity, transparency, convenience
and speed throughout the entire transaction process.
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