Home / News / Government / Nationstar Signs Federal Mod Contract
Print This Post Print This Post

Nationstar Signs Federal Mod Contract

""Nationstar Mortgage LLC"":http://www.nationstarmtg.com, headquartered in Dallas, Texas, has joined the list of mortgage companies officially under contract to provide federal loan modifications through the government's Home Affordable Modification program. Nationstar is slated to receive up to $101 million in incentive payments for its participation in the program.
The lender offers conforming and Fannie Mae products directly to consumers and also operates under the Champion Mortgage brand. Since its inception in 1997, Nationstar says it has helped over 250,000 consumers obtain a mortgage. The company is licensed to do business in 47 states and currently services over 90,000 loans totaling more than $12 billion.
The servicer contracts for the modification piece of the administration's mortgage relief plan were made available in mid-April. Since that time, 15 companies have now ""signed on to the program"":http://www.makinghomeaffordable.gov/contact_servicer.html. The nation's largest lenders - including JP Morgan Chase, Wells Fargo, Citi, the Bank of America-Countrywide conglomerate, and GMAC - have agreed to provide mortgage modifications under the federal guidelines. Specialty subprime servicer Ocwen Financial, along with Saxon Mortgage, Select Portfolio Servicing, Wilshire Credit Corporation, Home Loan Services, Green Tree Servicing, Carrington Mortgage Services, and Aurora Loan Services have also signed contracts.
The administration has said it will commit $75 billion to the Home Affordable Modification program, $50 billion of which will come out of the $700 billion bailout fund, with the remaining cash provided from other government sources. Of that amount, just over $15 billion has been ""allocated to the fifteen servicers"":http://www.financialstability.gov/docs/transaction-reports/transactions-report-060509.pdf now under contract.
The administration has said it expects the modification piece of its housing program to lower monthly payments for three to four million at-risk homeowners, while the refinance initiative will provide mortgage relief to another four to five million. Between the servicers under contract to provide modifications and loans owned or securitized by Fannie Mae or Freddie Mac, government officials say more than 75 percent of all loans in the country are now covered by the Making Home Affordable program.

About Author: Carrie Bay

Carrie Bay is a freelance writer for DS News and its sister publication MReport. She served as online editor for DSNews.com from 2008 through 2011. Prior to joining DS News and the Five Star organization, she managed public relations, marketing, and media relations initiatives for several B2B companies in the financial services, technology, and telecommunications industries. She also wrote for retail and nonprofit organizations upon graduating from Texas A&M University with degrees in journalism and English.
x

Check Also

HUD Assists Florida Victims of Hurricane Ian

President Biden has issued a major disaster declaration for several Florida counties, after an estimated $22-$32 billion in wind losses for residential and commercial properties due to Hurricane Ian.