Nationstar Mortgage (NYSE:NSM)

CAPS Rating: 3 out of 5

Results 1 - 3 of 3

Recs

1
Member Avatar MKArch (99.70) Submitted: 9/10/2014 8:04:33 PM : Outperform Start Price: $31.42 NSM Score: -8.56

I'm not an expert on mortgage servicing however reading up on the basics of the industry while contemplating this pick and another for OCN they benefitted mightily from banks needing to get out of this industry due to new regulations and not wanting to deal with the headline risk associated with getting dead beats to pay their mortgage. Since servicers make their nut on a tiny slice of the interest on the loans the end of the refinancing booms helps keep loans in their portfolio and the improving economy and housing market mean less defaults. Except for politics it's an industry with the wind behind it.

On the negative side tight lending will mean less loans going forward and this is and industry directly in the cross hairs of the politicians and regulators looking to score political brownie points. New York's DFS is already investigating OCN which lead to a serious hair cut this year and my chance to add them and NSM to CAPS at a forward P/E under 10. My bet is even the extortionist in New York will eventually realize that you can't have your cake and eat it too... when you force financial companies to keep existing dead beat home owners in their homes, the cost is no loans to potential new home owners unless they have pristine credit. In the immortal words of someone "this too shall pass".

Recs

0
Member Avatar dkataja (< 20) Submitted: 3/5/2013 1:39:18 PM : Outperform Start Price: $40.92 NSM Score: -60.67

Will continue to benefit from its close partnership with B of A.

Recs

0
Member Avatar NYPaperman (< 20) Submitted: 10/16/2012 11:24:47 AM : Outperform Start Price: $32.05 NSM Score: -48.81

Housing is recovering (slowly), credit is improving (slowly), and all the while non-bank Nationstar Mortgage Holdings has continued to buy up mortgage portfolios and in turn is making great profits. Not being a bank NSM has more latitude in handling its assets. This is a very interesting sector. "Life's a gamble. Roll the dice"

Results 1 - 3 of 3

Featured Broker Partners


Advertisement