Nationstar Mortgage Holdings Inc. announced today it has reached an agreement with Bank of America to acquire $10.4 billion in residential mortgage servicing rights.
Nationstar said the loans it is acquiring are entirely from government-sponsored enterprises: Freddie Mac and Fannie Mae. Nationstar services about $103 billion in loans.
Nationstar said in a note to investors that it will fund a portion of the purchase price with a $44 million co-investment being made by Newcastle Investment Group, which will receive 65% of the monthly cash flow rights as part of the investment.
In 2011, Bank of America sold about $900 million wort of mortgage servicing rights.