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As HousingWire mentioned Thursday, Nationstar Mortgage is apparently looking to sell off home loans backing securities, according to reports from Bloomberg. However, Bloomberg has a follow-up to the same report in which it notes the servicer also is facing litigation over its willingness to auction off home loans linked to investors.
The article, which appears below, apparently suggests that no matter how well the major servicers do in terms of earnings, concerns remain.
Nationstar Mortgage Holdings Inc. (NSM), the mortgage servicer that collects payments on more than $300 billion of debt, was accused in a lawsuit of harming investors by auctioning home loans backing securities, Bloomberg wrote.
Nationstar’s loan liquidations are a "blatant abdication" of the company’s responsibilities as servicer, mortgage-bond investor KIRP LLC said in a complaint filed today in New York State Supreme Court in Manhattan.
"Nationstar has not fulfilled its duties as master servicer but rather has engaged in practices to enrich itself at the expense of" investors, KIRP said. KIRP said that it’s a "significant" investor in six residential mortgage-backed security trusts sponsored by Residential Accredit Loans Inc.
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