Nationstar Buys Settlement Services Firm
Nationstar Mortgage Holdings Inc. has purchased Equifax Settlement Services Holding, a provider of appraisal, title insurance and settlement services.
The mortgage lender and servicer said it intends to combine ESS with its Solutionstar platform and rebrand ESS as Solutionstar Settlement Services. Solutionstar offers asset management, settlement and processing services.
Nationstar has been very active in the past few weeks. On Wednesday it priced a debt offering. The proceeds are being used to help pay for its acquisition of a Bank of America mortgage servicing rights portfolio, which closed on Feb. 4.
On Jan. 28, the company priced a $300 million asset-back notes offering.
In a press release, Nationstar CEO Jay Bray said, “Combined with our asset management and recovery businesses, ESS brings critical capabilities and an experienced management team that will greatly enhance the value of Solutionstar. In support of our strategy to further broaden our real estate services offering across the entire mortgage lifecycle, we will continue to pursue strategic acquisitions of fee-based services companies that meet our return thresholds.”
The price paid to Equifax was not disclosed. According to Equifax’ fourth-quarter results, ESS had operating losses of $7.7 million for 2012 and approximately $500,000 for 2011.