Nationstar Mortgage Reviews | Cons, Benefits, Consumer Complaints, Rates, Fees
The Future for Nationstar Mortgage (2014 Review)
As Nationstar Mortgage continues its strategy of acquiring / buying up the rights to service the mortgage industry, more and more customers are likely to complain about the company’s approach towards collection and customer service.
Nationstar which currently services over $375 billion mortgages trades on the New York Stock Exchange (NYSE) under the symbol NSM. In the past 6 months, the company’s stock has fallen over 43%.
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For its most recent quarter, the firm reported gross income of $410.4MM. After subtracting expenses and taxes, the firm reported a net income loss of $50.9MM
Nationstar Mortgage Stock Chart (Last 6 Months)
History of Nationstar Mortgage
Nationstar Mortgage is an American mortgage lender and servicer, based in Lewisville, Texas.
The history of Nationstar Mortgage dates back less than two decades. The company has been in business since 1997, and services a wide cross-section of clients, including: government organizations, national and regional banks, private investment funds, securitization trusts, among others.
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Nationstar Mortgage prides itself in being able to scale quickly and efficiently, with low capital investment.
This allows the company the agility to service the ever-changing needs of its clients.
Through its relationship with mega-homebuilding company KB Home, and strategic acquisition of companies like Greenlight Financial Services, Nationstar Mortgage is looking to build on its loan origination capabilities in years to come.
The company is headed by Jay Bray, Chief Executive Officer and Director, and Harold Lewis, President and Chief Operating Officer. Both executives have a long history of service in the mortgage industry, and have established track records of delivering exceptional results.
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Nationstar Mortgage Rates
The average Nationstar Mortgage coupon rate is around 5.5%, as reported in the company’s annual report.
Nationstar Late Fees
Customers are given a 9-day grace period after their mortgage due date within which to make payment, before a late fee of $9.95 is levied on the account.
Services Offered By Nationstar Mortgage
1. Mortgage Servicing
Nationstar Mortgage assists residential mortgage companies in managing and servicing their mortgage portfolios. This allows those clients to focus on other areas of their business, while Nationstar reviews and monitors the activity on each mortgage account.
Nationstar handles mortgage servicing under either a primary servicing arrangement, or a subservicing arrangement.
Under the primary servicing arrangement, Nationstar owns the mortgage servicing rights (MSRs), which allows the company to collect principal and interest from the mortgager, as well as managing matters relating to insurance and escrow.
Under the subservicing arrangement, Nationstar manages the day-to-day operations associated with mortgage servicing under an outsourcing agreement with the client. Such clients may include banks, mortgage investors or other owners of MSRs. Subservicing allows Nationstar to assist clients in reducing credit losses, preserving home ownership, and maximizing cash flow.
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2. Loan Originations
Nationstar Mortgage offers an origination platform which aids in the customer credit assessment process for refinancing. The customer relationship management platform allows Nationstar to manage customer prospecting and overall communication. Through its partnership with KB Home, Nationstar provides the Home Community Mortgage, which handles originating loans to prospective homebuyers.
3. Solutionstar
Another service offered by Nationstar Mortgage is Solutionstar, a suite of mortgage services to support financial institutions. Through Solutionstar, financial institutions receive assistance with appraisals, title insurance, loan settlement services, re-originated loans, and a number of other related services.
Pros – Nationstar Reviews
1. Employee Benefits Package
Nationstar Mortgage employees enjoy a number of benefits working for the company.
From 401k and paid vacation and holidays, to life insurance and medical insurance, Nationstar Mortgage tries to make every member of team feel as comfortable as possible.
Of the total number of mid-level managers in the organization, about 80% are promoted from within. Nationstar Mortgage has a 3-star rating on the online job portal Indeed.com based on reviews from 127 existing and former employees.
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2. Real-time Online Mortgage Information
Through the Nationstar Mortgage online portal, customers are able to monitor account activity and keep abreast of their payment due dates.
The online portal provides loan summary information, monthly statements, payment details, escrow analysis, interest and taxes paid, and a number of service request options.
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3. Convenience of Doing Business
Customers have the convenience of paying to their mortgage accounts by way of:
- Automatic standing orders from checking account;
- Paying by mail;
- Paying by credit and debit cards online;
- Western Union Pay by Phone service and Western Union Quick Collect service;
- MoneyGram Express Payment.
4. Hardship Assistance
In times of need, Nationstar Mortgage counselors are available to assist customers with choosing the plan that is most suited for their specific situation.
Whether it’s the Home Affordable Modification plan, or a short sale, the Nationstar counselors are on hand to help.
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Cons – Nationstar Reviews
1. A High Number of Online Customer Complaints
According to the Better Business Bureau (BBB) complaint log, the BBB has assisted customers in resolving 2,340 complaints against Nationstar Mortgage in the past three years.
Of that number, 1,385 complaints were closed in the last 12 months. The nature of the complaints lodged range from problems with the services offered by Nationstar and also issues with billing and collection.
The complaints also extend to the poor level of service meted out to customers by Nationstar employees.
From incorrect payment postings and challenges with loan modification requests, to the inaccessibility of customer service personnel, Nationstar Mortgage customers are unimpressed with manner in which the institution does business.
Similarly, ConsumerAffairs.com has 1,159 complaints on record, with Nationstar Mortgage receiving a single-star overall satisfaction rating.
2. Alleged Discrimination
Claims of discrimination are a public relations nightmare, and could dissuade customers from making Nationstar Mortgage their institution of choice in the future.
In one recent case, Nationstar Mortgage paid $30,000 in 2013 to a New Jersey customer, who alleged that she was denied mortgage refinancing due to her maternity leave.
Nationstar Mortgage also agreed to pay $6,000 to the Division of Civil Rights, but admitted to no liability under the terms of the settlement
3. Ongoing Lawsuits Regarding Misconduct:
Among the court cases currently being tackled by Nationstar Mortgage is KIRP LLC v. Nationstar Mortgage LLC.
The New York-based KIRP, a company of investors in bonds that are backed by residential mortgages, is suing Nationstar Mortgage for its loan liquidation practices.
“Nationstar has not fulfilled its duties as master servicer but rather has engaged in practices to enrich itself at the expense of” investors, KIRP said.
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