Nationstar Temporarily Restricted in Servicing Mortgages Last Year

Nationstar Temporarily Restricted in Servicing Mortgages Last Year

Nationstar Mortgage Holdings Inc., NSM -4.27% a company that processes payments for millions of mortgages, was temporarily prevented last year from buying the rights to service home-loans backed by Fannie Mae FNMA +0.26% and Freddie Mac,FMCC -0.52% according to people familiar with the matter.

Although the restrictions on Nationstar were later lifted, the incident helps illustrate why a federal watchdog is raising concerns about rapid growth of nonbank financial firms in the mortgage market. A report released Tuesday by the inspector general of the Federal Housing Finance Agency, which regulates Fannie Mae and Freddie Mac, said some nonbank mortgage-servicing companies may lack adequate funding, putting the mortgage market at risk.

The report described the troubles of one particular company that breached Fannie Mae’s minimum capital requirement for servicers, which prompted Fannie Mae to limit the company’s ability to acquire servicing rights for additional mortgages.

The report didn’t mention the name of the company, but people familiar with the matter identified the servicer as Nationstar. In a statement, a Nationstar spokesman said the company “has strong working relationships with Fannie Mae and Freddie Mac.” The spokesman said the company currently meets “all capital requirements for conducting business.”

One response to “Nationstar Temporarily Restricted in Servicing Mortgages Last Year

  1. this is living proof the only reason nationstar ,wesley edens ,anthony barone and every other officer of nationstar or any affilliate of fortress 1 through 5 investment groups as all officers are shell gamed around ,are not all in the penetentiary for life is they are in bed with the fedetal govt. and allowed to behave that would put anyone else behind bars. we can only hope Donald Trump fixes these criminals with what they deserve . we should all write to the white house and make Nationstar, wesley edens ,anthony barone all exposed and make them possible subjects to drop the bomb on them

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s