Mr Cooper Group Inc (COOP)

[Petewamu]

Announcement - Servicer: Moody's assigns an SQ2- to Nationstar Mortgage as a servicer of prime, subprime and special servicer of mortgage loansGlobal Credit Research - 24 Feb 2021U.S. Residential Mortgage Servicer Assessment ActionsNew York, February 24, 2021 -- Moody's Investors Service has assigned Nationstar Mortgage LLC (Nationstar) d/b/a Mr. Cooper a servicer quality assessment of SQ2- as a primary servicer of prime, subprime and as a special servicer of residential mortgage loans.As of December 2020, the company's servicing portfolio totaled approximately $626 billion in unpaid principal balance. Nationstar is the largest non-bank residential mortgage servicer in the U.S.ASSESSMENT RATIONALEWe assess the company's collection abilities as above average. Nationstar's collection performance metrics were above average for the review when compared to peers. The company uses diverse borrower contact strategies which include text, email and web chat. Customer service agents utilize a web portal that includes a borrower interview tool with compliance requirement protocols built in. Call center metrics for the company were stressed due to the COVID-19 pandemic in March and April 2020, but the metrics normalized during subsequent months.We view Nationstar's loss mitigation abilities as above average. Nationstar maintains solid loss mitigation technology including their proprietary decisioning system REMEDY. For borrowers affected by COVID-19, Nationstar automated the forbearance request process through its interactive voice response (IVR) system and website. The company demonstrates above average modification performance when compared to peers.We view the company's foreclosure and REO timeline management as above average. Nationstar utilizes LPS desktop for communication with its attorney network, and monthly scorecards to monitor the performance of attorneys. During the review period, loans in foreclosure and REO were placed on hold to comply with investor and regulatory COVID-19 moratoriums.We view the company's loan administration function as average. Nationstar uses a proprietary system for investor reporting, IRIS, that supports all required remittance types and investor accounting protocols. The company successfully implemented investor changes necessary for COVID-19 reporting. During the review period Nationstar implemented a new proprietary loan boarding tool helping to reduce boarding timelines.We view Nationstar's servicing stability as below average. The stability assessment incorporates the corporate family rating (B2 -- Stable Outlook) for Nationstar Mortgage Holdings Inc. Nationstar has an experienced senior management team and continues to invest in technology. In response to the COVID-19 pandemic, the company successfully transitioned the majority of servicing employees to a remote working environment.The framework used in this analysis was "Servicer Quality Assessments for Servicers of Residential Mortgages" published in December 2019 and available at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBS_1122183. Alternatively, please see the Framework list at https://www.moodys.com/research/List-of-NCRA-Frameworks--PBC_1178235 for a copy of this framework. Please see www.moodys.com for any updates on changes to the lead rating analyst and to the Moody's legal entity that has issued the rating.This publication does not announce a credit rating action. For any credit ratings referenced in this publication, please see the ratings tab on the issuer/entity page on www.moodys.com for the most updated credit rating action information and rating history. Francis Wissman Vice President - Senior Analyst Structured Finance Group Moody's Investors Service, Inc. 250 Greenwich Street New York, NY 10007 U.S.A. JOURNALISTS: 1 212 553 0376 Client Service: 1 212 553 1653 William Fricke VP - Senior Credit Officer Structured Finance Group JOURNALISTS: 1 212 553 0376 Client Service: 1 212 553 1653 Releasing Office: Moody's Investors Service, Inc. 250