5 things you absolutely need for the MBA convention in Las Vegas

Is the Massachusetts AG's run for governor compromised by GSE buyback lawsuit?

Nonprofit CEO also co-chairs Coakley’s campaign finance committee

Exclusive: Move CEO Steve Berkowitz opens up about News Corp deal

Plus his thoughts on Zillow/Trulia and the future of real estate
W S
Investments

Nationstar prices servicer advance securitizations at $300 million

Nationstar Mortgage priced two servicer advanced receivable transactions at $300 million after analysts announced its special purpose vehicle Nationstar Agency Advance Funding Trust would offer an estimated $900 million in mortgage servicer advance receivable-backed notes.

Three series were outlined in the original announcement, with plans for each transaction to be backed by servicing fee advance receivables rather than mortgage payments.

Structured Credit Investor confirmed that the $300 million pricing announced on Monday, included $200 million for the Nationstar Agency Advance Funding Trust 2013-T1 series and $100 million for the 2013-T2 series.

A third securitization deal was announced in S&P's initial projection of a $900 million offering, but as of Monday had not been officially priced. 

Advance Funding Trust's note issuance is backed by servicing-fee advance receivables on Freddie-Mac backed home loans.

The Lewisville-based servicer said the issuance and sale is expected to close on Jan. 31, 2013. The notes feature a weighted average fixed-interest rate of 1.46% and a weighted average term of 3 years. 

The notes will replace $300 million in existing agency servicing advance facilities that carried a weighted average floating rate of Libor plus 2.86%, or 3.10% in total, resulting in a reduction in rate of 1.65%.

"I am pleased to announce the execution of the first ever Agency servicer advance securitization," said Jay Bray, Nationstar’s CEO.  "This securitization further diversifies our funding sources, reduces our advance funding costs, and establishes a Nationstar precedent for financing our advances with fixed-rate term debt at a very opportune time in the rate cycle. We intend to access the ABS markets frequently as we execute on our stated goal to lower advance expenses  to drive further gains in servicing profitability."

kpanchuk@housingwire.com  

Recent Articles by Kerri Panchuk

Comments powered by Disqus