The net proceeds to us from the sale of the 16,666,667 shares of common stock
offered hereby will be approximately $214.4 million, after deducting the
offering expenses payable by us. We intend to use the net proceeds from this
offering for working capital and other general corporate purposes, including
servicing acquisitions, which may include acquisitions from one or more
affiliates of the underwriters in this offering.
In our Servicing Segment, we compete with large financial institutions and with
other independent servicers. Our ability to differentiate ourselves from other
loan servicers through our high touch servicing model and culture of credit
loss ownership largely determines our competitive position within the mortgage
loan servicing industry.
In our Originations Segment, we compete with large financial institutions and
local and regional mortgage bankers and lenders. Our ability to differentiate
the value of our financial products primarily through our mortgage loan
offerings, rates, fees and customer service determines our competitive position
within the mortgage loan originations industry.
Company Description
We are a leading high touch non-bank residential mortgage servicer with a broad
array of servicing capabilities across the residential mortgage product
spectrum. We have been the fastest growing mortgage servicer since 2007 as
measured by growth in aggregate unpaid principal balance (“UPB”),
having grown
70.2% annually on a compounded basis. As of December 31, 2011, we serviced over
645,000 residential mortgage loans with an aggregate UPB of $106.6 billion
(including $7.8 billion of servicing under contract), making us the largest
high touch non-bank servicer in the United States. Our clients include national
and regional banks, government organizations, securitization trusts, private
investment funds and other owners of residential mortgage loans and securities.
We attribute our growth to our strong servicer performance and high touch
servicing model, which emphasizes borrower interaction to improve loan
performance and minimize loan defaults and foreclosures. We believe our
exceptional track record as a servicer, coupled with our ability to scale our
operations without compromising servicer quality, have enabled us to add new
mortgage servicing portfolios with relatively low capital investment. We are a
preferred partner of many large financial organizations, including government-
sponsored enterprises (“GSEs”) and other regulated institutions that value our
strong performance and also place a premium on our entirely U.S.-based
servicing operations. We employ over 2,500 people in the United States and are
a licensed servicer in all 50 states.
In addition to our core servicing business, we are one of only a few non-bank
servicers with a fully integrated loan originations platform and suite of
adjacent businesses designed to meet the changing needs of the mortgage
industry. Our originations platform complements and enhances our servicing
business by allowing us to replenish our servicing portfolio as loans pay off
over time, while our adjacent businesses broaden our product offerings by
providing mortgage-related services spanning the life cycle of a mortgage loan.
We believe our integrated approach, together with the strength and diversity of
our servicing operations and our strategies for growing substantial portions of
our business with minimal capital outlays (which we refer to as our “capital
light” approach), position us to take advantage of the major structural changes
currently occurring across the mortgage industry.
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Nationstar Mortgage Holdings Inc. was recently incorporated for the purpose of
effecting this offering and currently holds no material assets and does not
engage in any operations. Prior to the completion of this offering, all of the
equity interests in Nationstar Mortgage LLC will be transferred from FIF HE
Holdings LLC (our “Initial Stockholder”) to two direct, wholly-owned
subsidiaries of Nationstar Mortgage Holdings Inc. (the “Restructuring”).
Additionally, as part of the Restructuring, certain parent entities of our
Initial Stockholder that do not have any material assets or material
liabilities other than their direct or indirect ownership of our Initial
Stockholder, or any operations, will be merged with and into Nationstar
Mortgage Holdings Inc., and the former shareholders of those parent entities
will receive equity interests in our Initial Stockholder. Upon the completion
of the Restructuring, we will conduct our business through Nationstar Mortgage
LLC and its consolidated subsidiaries. Prior to the completion of this
offering, we also will effect a 70,000 to 1 stock split pursuant to a stock
dividend. All shares and per share data in this prospectus have been adjusted
to reflect the stock split, except as otherwise indicated. In addition, in
connection with this offering, the Initial Stockholder is offering to certain
of our current and former members of management the opportunity to exchange
their Series 1 Class A units for shares of our common stock that are currently
held by the Initial Stockholder (the “Unit Exchange”).
Nationstar Mortgage LLC was formed in 1994 in Denver, Colorado as Nova Credit
Corporation, a Nevada corporation. In 1997, it moved its executive offices and
primary operations to Dallas, Texas and changed its name to Centex Credit
Corporation. In 2001, Centex Credit Corporation was merged into Centex Home
Equity Company, LLC, a Delaware limited liability company (“CHEC”). In 2006,
our Initial Stockholder acquired all of its outstanding membership interests
(the “Acquisition”), and CHEC changed its name to Nationstar Mortgage LLC.
Our executive offices are located at 350 Highland Drive, Lewisville, Texas
75067 and our telephone number is (469) 549-2000. Our Internet website address
is www.nationstarholdings.com.