Nationstar Mortgage LLC signed a definitive agreement to acquire $5.8 billion in related servicing advance receivables from Bank of America Corporation (NYSE:BAC) on January 7, 2013. Nationstar expects to enter into third-party financing agreements to fund the servicing advances. As of July 18, 2013, New Residential invested approximately $65 million to acquire the right to receive one-third of the monthly cash flow generated by the mortgage servicing rights.

Under the terms of this investment, to the extent that any loans in the portfolio are refinanced by Nationstar, the resulting MSRs will be included in the portfolio, subject to certain limitations. New Residential expects to complete the remainder of the transaction in the third quarter, subject to regulatory approvals and customary closing requirements. As of August 6, 2013, it was announced that part of the acquisition was closed in early July, 2013, and the remainder is expected to close in 2013.