Inventory
info icon
Single family homes on the market. Updated weekly.Powered by Altos Research
721,576-14142
30-yr Fixed Rate30-yr Fixed
info icon
30-Yr. Fixed Conforming. Updated hourly during market hours.
6.97%0.01
MortgageReverse

Nationstar Plans $300 Million Reverse Mortgage Securitization

This week, Moody’s Investors Service assigned provisional ratings to three classes of residential mortgage-backed securities issued by Nationstar HECM Loan Trust 2016-01.

The certificates are backed by one pool of inactive Home Equity Conversion Mortgage (HECM) first-lien loans, along with real estate owned (REO) properties acquired through the conversion of ownership of reverse mortgages covered by Federal Housing Administration insurance.

In total, the collateral pool comprises 1,085 mortgages with a balance of $302,891,615, according to Moody’s. Broken down by asset type, the pool includes 884 HECM loans with an aggregate balance of approximately $258.7 million, and 201 REO properties with a balance of $44.2 million.

The status of the loans are either in default (10.1% of total pool), due and payable (12.3%), foreclosure (63%) or REO (14.6%).

Of those in default, 8.5% are due to non-occupancy, while 88.3% are due to taxes and insurance default and 3.2% are in default for other reasons.

The portion of REO loans were acquired through foreclosure or deed-in-lieu of foreclose on the associated loan.

Nationstar acquired the mortgage assets from Ginnie Mae sponsored HECM mortgage-backed (HMBS) securitizations. All of the loans are covered by FHA insurance for the repayment of principal up to certain amounts.

Nationstar Mortgage, LLC, is the servicer for the deal. The transaction is Nationstar’s fourth non-agency MBS backed by inactive reverse mortgages.

Written by Jason Oliva

Leave a Reply

Your email address will not be published. Required fields are marked *

Most Popular Articles

Latest Articles

Training to lead: How to build leaders in your mortgage business 

Creating an effective leadership training program doesn’t just benefit your organization’s bottom line; it empowers your people, fosters loyalty, and creates a sense of purpose. Here’s a simple guide to creating a program that builds leaders from within—one that not only supports your team’s growth but helps them unlock their potential and lead with confidence.

3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please