Seneca Mortgage Servicing just selected Nationstar Mortgage Holdings as its subservicer for its current and future acquisitions of mortgage servicing rights.
Seneca, a mortgage servicing company based in Buffalo, New York, currently owns about $50 billion in MSRs, which are mainly made up of Fannie Mae and Freddie Mac residential mortgages.
Nationstar will assume Seneca’s existing office location, including "many highly skilled team members" involved in the servicing of the existing portfolio, Nationstar said in a release.
“We are pleased to partner with an experienced and respected subservicer in Nationstar, a company with similar roots and a strong commitment to serving its customers,” said Bharat Bhatt, Seneca's chairman of the board. “They are the best partner for Seneca’s existing customers and for our continued growth as we add MSRs to our portfolio through flow and bulk acquisitions.”
The subservicing for Seneca will be added to the previously announced $55 billion private label subservicing partnership between the two companies. In its release, Nationstar said it anticipates growing its Seneca subservicing portfolio to more than $100 billion by the end of the year.
“We continue to demonstrate the strength of our industry-leading mortgage servicing platform,” Nationstar President and CEO Jay Bray said. “Subservicing has become a powerful growth vehicle for Nationstar driven by our focus on the customer and continual investments in technology, process, and compliance. Seneca's highly-regarded team will help advance our subservicing growth strategy and we are excited to welcome them to the Nationstar family."
It seems Nationstar is going through many changes. Back in February, confirming plans that HousingWire brought to light late last year and further revealed earlier this year, Nationstar announced it will indeed be launching a massive rebranding later this year and changing its name to Mr. Cooper.
The transaction between Seneca and Nationstar is subject to regulatory approvals and final closing items.