Nationstar to Acquire $63B in Mortgage Servicing Rights from Aurora

""Nationstar Mortgage"":https://www.nationstarmtg.com/ is acquiring approximately $63 billion in residential mortgage servicing rights (MSRs) from ""Aurora Bank"":https://www.aurorabankfsb.com/, a subsidiary of ""Lehman Brothers Bancorp"":http://www.lehman.com/.

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The agreement was announced Tuesday in a release, which stated that the Lewisville, Texas-based mortgage servicer will pay approximately $268 million in servicing rights and $210 million for related servicing advance receivables.

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The acquisition will lead Nationstar to become one of the top 10 mortgage servicers.

Aurora ranks as number 19 among mortgage servicers in the U.S., according to Inside Mortgage Finance as of December 31, 2011.

Nationstar will fund up to $170 million of the mortgage servicing rights with proceeds from ""Newcastle Investment Corp"":http://www.newcastleinv.com/. The mortgager will sell 65 percent of the excess MSRs to Newcastle, and Nationstar will retain about 35 percent of the MSRs and all ancillary income associated with servicing the loans, according to the release.

The portfolio is expected to consist of about 75 percent non-conforming loans in private label securitizations and 25 percent conforming loans in GSE pools.

The transaction is expected to close in the second quarter of 2012, depending on regulatory and third-party approvals.