Bank of America Sells $10 Billion Worth of Mortgage Servicing Rights

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.

Bryan Yurcan is associate editor for Bank Systems and Technology. He has worked in various editorial capacities for newspapers and magazines for the past 8 years. After beginning his career as a municipal and courts reporter for daily newspapers in upstate New York, Bryan has ... View Full Bio