While most residential-mortgage-loan servicing is concentrated among a few banks, Nationstar is a nonbank servicer, and has said it believes the industry is shifting toward nonbank servicers as banks seek to exit from the business, which can be volatile and capital-intensive.
Some of the soured assets Beal purchased at fire-sale prices were residential mortgage-backed securities that were sold in deals in which banks made representations and warranties about loan quality and promised to repurchase those loans if the representations were no good.
At the very least, there was the basic four page Uniform ResidentialLoan Application (Form 1003) that was the foundation and the starting point for ALL mortgage loans.