Nationstar Mortgage, Lewisville, Texas, is contemplating making a bid for Bank of America's correspondent lending division, or at least parts of it, according to industry advisors who claim to have knowledge of the matter.
At press time a Nationstar official declined to comment on the matter.
Some industry analysts expressed suprise at the news, noting that correspodent lending is a business presently dominated by large depositories – not a nonbank like Nationstar.
Late last month B of A announced that it would exit the correspondent mortgage space, where it ranks second nationwide.
The bank is currently marketing the correspondent group whose business is intertwined with its warehouse lending division. Among warehouse financers, B of A ranks first nationwide with about $10 billion of commitments, according to figures compiled by National Mortgage News and the Quarterly Data Report.
Nationstar ranks 28th among originators with a market share of 0.31%. It also services roughly $67 billion of residential loans.
The lender is owned by Fortress Investment Group, a publicly traded investment fund whose share price is roughly $3.50. Its CEO is Daniel Mudd, the former CEO of Fannie Mae.
