NEW YORK CITY-Newcastle Investment Corp. has agreed to acquire a one-third interest in excess mortgage servicing rights on approximately $215 billion of unpaid principal loans from Nationstar Mortgage Holdings Inc.
The transaction was in conjunction with Nationstar’s purchase of mortgage servicing rights from Bank of America. Newcastle has committed to invest approximately $340 million to acquire a one-third interest in the excess mortgage servicing rights. Company officials stated in an announcement distributed on Business Wire that a majority of its investment is expected to close in the first quarter of 2013. Nationstar will service the loans and will retain a one-third interest in the excess mortgage servicing rights. A Fortress Fund will acquire the remaining one-third interest.
The loans comprise four pools, of which 47% are expected to be loans that are owned, insured or guaranteed by agency/government entities and 53% are expected to be non-conforming loans in private label securitizations.
Newcastle also announced it spent $27 million for a one-third interest in excess mortgage servicing rights on a $13-billion Ginnie Mae pool. Nationstar is the servicer and owns a one-third interest, while the Fortress Fund has the remaining one-third interest. To read the full company announcement see Business Wire.