UPDATE 1-Nationstar Mortgage files for up to $400 mln IPO
May 16 (Reuters) - Residential mortgage loan servicer Nationstar Mortgage Holdings Inc filed with U.S. regulators on Monday to raise up to $400 million in an initial public offering of its common stock.
The preliminary filing did not reveal how many shares the company planned to sell or their expected price. Underwriters for the IPO were also not revealed.
Regulatory scrutiny of bank mortgage servicers is expected to boost use of specialty mortgage servicers like Nationstar, which focus on distressed home loans.
In March, Walter Investment Management Corp bought another specialty servicer Green Tree Credit for $1 billion to capitalize on the move to specialty servicers. [ID:nASA01TN1]
The largest loan servicers like Bank of America , Wells Fargo & Co , JPMorgan Chase & Co , Citigroup and GMAC/Ally Financial Inc are facing investigation by their regulators and state attorney generals over alleged wrongdoing while handling foreclosures.
Some regulators want consumer-friendly changes to servicing practices, including requiring a single point of contact for borrowers and more aggressive use of principal forgiveness.
Lewisville, Texas-based Nationstar, which is backed by private equity firm Fortress Investment Group LLC, intends to list on the New York Stock Exchange.
The amount of money a company says it plans to raise in its first IPO filings is just used to calculate registration fees. The final size of the IPO can be different. (Reporting by Sweta Singh in Bangalore; Editing by Roshni Menon)
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