Nationstar faces challenges as Wall Street turns skeptical on nonbank MSRs

Nationstar (NSM) isn’t facing quite the level of pushback or regulatory targeting as its counterpart Ocwen Financial (OCN), but it is having a devil of a time lately and it was reflected in reports and on the market boards Friday.

Nationstar will report its second-quarter earnings on Wednesday, August 6.

Nonbanks snapping up mortgage servicing rights have been fighting against a flurry of regulatory pushback and scrutiny, not so much for anything they have done, but because of their growing share of the MSR servicing space.

TheStreet Ratings team rated Nationstar as a “hold” with a ratings score of C-. TheStreet Ratings Team had this to say about their recommendation:

We rate NATIONSTAR MORTGAGE HOLDINGS (NSM) a HOLD. The primary factors that have impacted our rating are mixed – some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company’s strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income and a generally disappointing performance in the stock itself.

Read on.

One response to “Nationstar faces challenges as Wall Street turns skeptical on nonbank MSRs

  1. In my opinion, Nationstar mortgage has purchased stolen properties, as a debt collector. Non collectable alleged debt, actually stolen,that were suppose to be deposited into the trust, but never were, which is securities fraud. Nationstar can look forward to massive litigation coming. Just like Quality. The people will not allow this fraud to happen. Just my unprofessional opinion.

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