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» LENDER/SERVICER PROFILE VISIT US ONLINE @ DSNEWS.COM MEGA-SERVICER Nationstar Mortgage key personnel Jay Bay CEO Harold Lewis President and COO Bob Appel EVP, Servicing Kim Greaves EVP, Servicing Lisa Rogers EVP, Originations Staffing » Servicing staff: 4,100, including 2,300 dedicated servicing specialists » Servicing sites: 5 company vitals Headquarters: Lewisville, Texas Take a look inside the numbers Phone: 469.549.3005 Nationstar Mortgage is a leading national mortgage servicer with an integrated origination platform. Founded in 1994 and headquartered in Lewisville, Texas, Nationstar went public in March of 2012 and is majorityowned by funds managed by Fortress Investment Group. Nationstar is one of the largest non-bank servicers, with a servicing portfolio of $198 billion of Unpaid Principal Balance, as of Sept. 30, 2012. Pro-forma for announced acquisitions, Nationstar has a servicing portfolio of $425 billion. Nationstar's servicing book has increased significantly over the past two years as a result of bulk and flow mortgage servicing rights acquisitions, organic growth through servicing created from its origination platform, and by entering into strategic subservicing partnerships. Nationstar's fully integrated origination platform offers conforming, Fannie Mae, Federal Housing Administration, Freddie Mac, Veterans Affairs, jumbo, and U.S. Department of Agriculture origination products to its customers. California Portfolio Stats »Residential servicing portfolio: 2.5M loans; $425B (UPB) Portfolio Growth Loan Count: » 2012: 2.5M » 2011: 645,000 » Annual Change: +288% Unpaid Principal Balance (UPB) » 2012: $425B » 2011: $107B » Annual Change: +297% REO Stats » REO holdings: 15,867 *Statistics for FY 2012 are as of 2012 year-end know this Nationstar's IPO in March 2012 was the second-best performing offering of the year in the United States and the third-best performing globally with a return of 121.3%, according to the IPO market research firm Renaissance Capital. 20.3% Florida 9.6% 8.1% Texas company's l atest New York 4.7% Maryland January 25, 2013 servicing summary * s tat e s s e r v ic e d* Online: NationstarMtg.com || NationstarHoldings.com Nationstar Boasts Strong Fundamentals But Weak Chart Nationstar Mortgage Holdings is in a strong industry group and boasts healthy fundamentals. But its chart shows poor action following a promising breakout. The mortgage servicer cleared a 37.30 buy point in huge volume on January 7. But it's fallen for 10 of the past 12 sessions, and as much as 9% below the entry. Investors should sell any stock that falls 8% from their purchase price. So those who bought at the breakout may need to cut losses short. Nationstar buys troubled mortgages from big banks seeking to cut costs and comply with tougher banking regulations. Nationstar earns fees from servicing the mortgages and has done well thanks to falling delinquency rates and a gradually improving economy. Revenue growth has accelerated for three straight quarters, tripling in the latest period. Profit growth has been similarly strong. —Investors.com January 7, 2013 Nationstar Purchases $215B in MSRs from BofA Nationstar Mortgage LLC, based in Lewisville, Texas, has agreed to purchase residential mortgage servicing rights in the amount of $215 billion in unpaid principal balance from Bank of America, the company announced Monday, January 7. Nationstar entered the agreement with backing from Newcastle Investment Corp., based in New York, and Fortress Fund, based in Barbados. Each company will retain one-third interest in the MSRs, and Nationstar will service all the loans. The purchase price for the portfolio is $1.3 billion. "We are confident that we will be able to offer customers a smooth transition and look forward to improving the overall portfolio performance for all stakeholders," said Jay Bray, CEO of Nationstar. —DSNews.com servicer r atings Fitch Ratings: Residential Primary Servicer, Subprime » RSP2 4.1% *Percent of loans at the end of Q3 2012 90+ Day Delinquencies— Top Five States* New York 18.3% California13.5% Florida12.4% Maryland7.1% Illinois5.2% *Percent of loans at the end of Q3 2012 REO Concentration— Top Five States* Florida 10.2% Illinois 9.9% California 8.6% Ohio 7.9% Michigan 5.4% *Percent of loans at the end of Q3 2012 origination summary » $7.2B annual production (based on Q3 2012 annualized) » Agency- and government-backed » Servicing substantially retained Standard & Poor's: Residential Master Servicer » ABOVE AVERAGE Sources: Nationstar Mortgage (1/17/2013), Fitch Ratings (1/10/2011), Standard & Poor's (12/10/2012) 77