heard on the street
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they produce are little more than marketing collateral,” said Rick Grant, president of RGA Public Relations. “Our industry stands to benefit from valuable thought leadership but readers won’t sift through the marketing material to find it. It’s time for a higher standard and we intend to provide it.” The pair has already completed one White Paper for a top industry service provider, and will roll out their own on a controversial topic impacting the collateral valuation process by month’s end. “Our White Papers have a more academic bent than is generally seen in other marketing White Papers,” said Jeff Schurman, chief executive officer of Leading Causes LLC and editor of the Mortgage Third Party Risk Blog. “Marketing messages may be present, however our conversational writing style and presentation of the material in easy to understand terms minimizes the chance of the Paper being perceived by the reader as a marketing pitch.”
Nationstar Agrees to Acquire Mortgage Servicing Assets of ResCap
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ou’ve heard the sayings … “When life gives you lemons, make lemonade,” “When the going gets tough, the tough get going,” and “You can’t make something out of nothing.” What? Well, in the case of this month’s Mortgage Hero, J. Barry Sherlock, that’s just what he’s done. Recognizing a good thing, Barry took the USA Cares Certified Military Housing Specialist (CMHS) Course and knew it was a great tool for delivering skilled services to our military servicemen and servicewomen. But, retired from the mortgage industry, Barry no longer had military clients to help. How then could he show our military personnel his gratitude for their service to our country? He recruited real estate agents and mortgage brokers to the CMHS Course and its benefits, but he wanted to do more. He looked around and found a way to make something happen. Near Barry’s home in Lexington, Ky. is the historical Keeneland Race Track, who just happened to be hosting “Military Appreciation Day” with the Kentucky National Guard and Windstream. Hmmm? They would be auctioning a camouflage saddle cloth, signed by all members of the jockey association. Hmmm? Barry knew exactly who that money should benefit, he picked up the phone and called the Keeneland Racing Association to tell them about the national non-profit organization he wanted to help. They were determined to have an extremely successful “Military Appreciation Day.” Keeneland’s Terrace was transformed into the Military Family Zone with free food, live music and activities throughout the day for military members and J. Barry Sherlock their families. A parachute demonstration by the 101st Airborne Division followed the Presentation of Colors and National Anthem. Kentucky Guardsmen deployed to Kuwait and Afghanistan gave pre-recorded messages of thanks to Keeneland and the military families on the track’s video boards. “The weather was right for sweatshirts,” Barry said, “and we had USA Cares sweatshirts to give away. It’s a pleasure shaking hands with the veterans and thanking them for their service.” Keeneland’s featured race was a salute to all military with the horses wearing camouflage saddle towels. The trophy presentation included Windstream, Major General Edward W. Tonini, and Mortgage Hero J. Barry Sherlock. The winning saddle towel, signed by the Keeneland jockey colony, was auctioned for $999, with proceeds going directly to USA Cares to help provide financial and advocacy assistance to post 9/11 active duty U.S. military service personnel, veterans and their families. J. Barry Sherlock is proof to the old adage, “Where there’s a will, there’s a way.” In his three short months of volunteering on behalf of USA Cares, Barry raised just shy of $1,000, and he’s only just begun. His next project? “Making a sales call on Churchill Downs for their upcoming Military Appreciation Day,” Barry quips. “I’m excited! It’s my honor to serve the men and women of the military.” E-mail Barry for his ideas to raise money in your own community at bsherlock@hotmail.com.
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Be a Mortgage Hero! This recognition is free to Certified Military Housing Specialists. Take the FREE CMHS course offered online by USA Cares and tell us how you are “Helping those who defend our homes, preserve their own.” Please contact Program Director Beverly Frase at beverly.frase@usacares.org to join our national team and be our next Mortgage Hero. We want to recognize you!
19
JUNE 2012
CampusMBA, the education division of the Mortgage Bankers Association (MBA), has announced that it is partnering with the Consumer Financial Protection Bureau (CFPB) to offer a monthly Webinar series addressing a variety of issues including the CFPB’s current activities and significant initiatives impacting the mortgage industry. “The CFPB is actively engaged in a
By Beverly Frase
OKLAHOMA MORTGAGE PROFESSIONAL MAGAZINE
CFPB Partners With CampusMBA on Regulatory Webinar Series
J.. Barryy Sherlock
NationalMortgageProfessional.com
Nationstar Mortgage Holdings Inc. has announced that it has signed a definitive agreement to acquire certain residential mortgage servicing assets and other assets from Residential Capital LLC and related entities (ResCap) in connection with ResCap’s proposed asset sale pursuant to a plan under the U.S. Bankruptcy Code. Nationstar expects the acquired Mortgage Servicing Assets to total approximately $374 billion, including $201 billion in primary residential mortgage servicing rights (MSRs) and $173 billion in subservicing contracts, as measured by unpaid principal balances as of Feb. 29, 2012, approximately $1.8 billion of related servicing advance receivables and certain other complimentary assets. The transaction is expected to close in late 2012, subject to the conditions and auction process described below. Upon closing, the acquisition will make Nationstar the largest non-bank residential mortgage loan servicer and one of the largest residential loan originators in the nation. With this transaction, Nationstar anticipates adding more than 2.4 million customers to a customer base of more than one million, and growing its total servicing and sub-servicing book to approximately $550 billion. “We believe this transaction will cement Nationstar’s position as the nation’s pre-eminent non-bank mortgage servicer, and it reflects a record of servicing performance that has made us a partner of choice in a transforming
industry,” said Nationstar CEO Jay Bray. “This potential transaction and our pending acquisition of servicing rights from Aurora represent terrific opportunities to acquire assets and operations from best-in-class servicers without the burden of certain legacy liabilities.” The cash purchase price of the mortgage servicing rights and subservicing contracts would be approximately $700 million based on unpaid principal balances as of Feb. 29, 2012. The cash purchase price of the related servicing advance receivables would be approximately $180 million, net of financing, based on advance balances as of Feb. 29, 2012. Nationstar expects to enter into approximately $1.6 billion of advance financing facilities to fund the balance of the related servicing advance receivables. Approximately 68 percent of loans in the total portfolio (by unpaid principal balance) are owned, insured or guaranteed by Fannie Mae, Freddie Mac or Ginnie Mae. As contemplated by the agreement, ResCap has voluntarily filed a Chapter 11 petition in U.S. Bankruptcy Court and is seeking court approval to sell its Mortgage Servicing Assets in an auction process supervised by the court. Pursuant to the terms of the Agreement, Nationstar has agreed to serve as the “stalking horse” bidder for the auction of the Mortgage Servicing Assets. Nationstar’s bid is subject to superior offers solicited as part of the auction process as well as court and other approvals and conditions. Nationstar anticipates that the court will approve in mid-June the auction procedures and timeline for the sale of the Mortgage Servicing Assets and that the auction process will last approximately 90 days, during which time ResCap will solicit competing bids. If Nationstar is the successful bidder, then ResCap will seek court approval to sell the Mortgage Servicing Assets to Nationstar and the closing of the Transaction would be expected to occur in late 2012. The auction timing and process is subject to the court’s discretion and may change.
USA Cares Mortgage Heroes