10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2013

or

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from      to                     

Commission file number: 001-35449

Nationstar Mortgage Holdings Inc.

(Exact name of registrant as specified in its charter)

Delaware	45-2156869
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
350 Highland Drive Lewisville, TX	75067
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code:

(469) 549-2000

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  x No  ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  x    No  ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer or a non-accelerated filer. See definition of “accelerated filer” and “large accelerated filer” in Rule 12(b)-2 of the Exchange Act (check one)

Large Accelerated Filer	¨	Accelerated Filer	¨
Non-Accelerated Filer	x (Do not check if a smaller reporting company.)	Smaller reporting company	¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ¨    No  x

Number of shares of common stock, $0.01 par value, outstanding as of April 30, 2013: 90,570,864

NATIONSTAR MORTGAGE HOLDINGS INC.

QUARTERLY REPORT ON FORM 10-Q

TABLE OF CONTENTS

		Page
PART I	FINANCIAL INFORMATION
Item 1.	Financial Statements	5
	Consolidated Balance Sheets – March 31, 2013 (unaudited) and December 31, 2012	5
	Unaudited Consolidated Statements of Income and Comprehensive Income - For the three months ended March 31, 2013 and 2012	6
	Consolidated Statements of Stockholders’ Equity - For the three months ended March 31, 2013 (unaudited) and year ended December 31, 2012	7
	Unaudited Consolidated Statements of Cash Flows - For the three months ended March 31, 2013 and 2012	8
	Notes to Unaudited Consolidated Financial Statements	10
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	52
Item 3.	Quantitative and Qualitative Disclosure About Market Risks	67
Item 4.	Controls and Procedures	69
PART II	OTHER INFORMATION
Item 1.	Legal Proceedings	71
Item 1A.	Risk Factors	71
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	71
Item 3.	Defaults Upon Senior Securities	71
Item 4.	Mine Safety Disclosures	71
Item 5.	Other Information	71
Item 6.	Exhibits, Financial Statement Schedules	72
Signatures
Exhibits

2

CAUTIONS REGARDING FORWARD-LOOKING STATEMENTS

This report contains forward-looking statements within the meaning of the U.S. federal securities laws. Forward-looking statements include, without limitation, statements concerning plans, objectives, goals, projections, strategies, future events or performance, and underlying assumptions and other statements, which are not statements of historical facts. When used in this discussion, the words "anticipate," "appears," "believe," "foresee," "intend," "should," "expect," "estimate," "project," "plan," "may," "could," "will," "are likely" and similar expressions are intended to identify forward-looking statements. These statements involve predictions of our future financial condition, performance, plans and strategies, and are thus dependent on a number of factors including, without limitation, assumptions and data that may be imprecise or incorrect. Specific factors that may impact performance or other predictions of future actions have, in many but not all cases, been identified in connection with specific forward-looking statements.

There are a number of important factors that could cause future results to differ materially from historical performance and these forward-looking statements. Factors that might cause such a difference include, but are not limited to:

• the delay in our foreclosure proceedings due to inquiries by certain state attorneys general, court administrators, and state and federal government agencies;

• the impact of the ongoing implementation of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (Dodd-Frank Act), including rules issued by the Consumer Financial Protection Bureau (CFPB) relating to mortgage servicing and originations and the continuing examination of our business begun by the CFPB, on our business activities and practices, costs of operations and overall results of operations;

• the impact on our servicing practices of enforcement consent orders against, and agreements entered into by certain federal and state agencies with, the largest mortgage servicers and ongoing inquiries regarding other non-bank mortgage servicers;

• increased legal proceedings and related costs;

• the continued uncertainty of the residential mortgage market, increase in monthly payments on adjustable rate mortgage loans, adverse economic conditions, decrease in property values and increase in delinquencies and defaults;

• the deterioration of the market for reverse mortgages and increase in foreclosure rates for reverse mortgages;

• our ability to efficiently service higher risk loans;

• our ability to mitigate the increased risks related to servicing reverse mortgages;

• our ability to compete successfully in the mortgage loan servicing and mortgage loan originations industries;

• our ability to maintain or grow the size of our servicing portfolio and realize our significant investments in personnel and our technology platform by successfully identifying attractive acquisition opportunities, including mortgage servicing rights (MSRs), subservicing contracts, servicing platforms and originations platforms;

• our ability to scale-up appropriately and integrate our acquisitions to realize the anticipated benefits of any such potential future acquisitions, including potentially significant acquisitions;

• our substantial indebtedness may limit our financial and operating activities and our ability to incur additional debt to fund future needs;

• our ability to obtain sufficient capital to meet our financing requirements;

• our ability to grow our loan originations volume;

• the termination of our servicing rights and subservicing contracts;

• changes to federal, state and local laws and regulations concerning loan servicing, loan origination, loan modification or the licensing of entities that engage in these activities;

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• changes in state and federal laws that are adverse to mortgage servicers which increase costs and operational complexity and impose significant penalties for violation;

• loss of our licenses;

• our ability to meet certain criteria or characteristics under the indentures governing our securitized pools of loans;

• our ability to follow the specific guidelines of government-sponsored enterprises (GSEs) or a significant change in such guidelines;

• delays in our ability to collect or be reimbursed for servicing advances;

• changes to Home Affordable Modification Program (HAMP), Home Affordable Refinance Program, Making Home Affordable Plan or other similar government programs;

• changes in our business relationships with the Federal National Mortgage Association (Fannie Mae), the Federal Home Loan Mortgage Corporation (“Freddie Mac”), the Government National Mortgage Association (“Ginnie Mae”) and others that facilitate the issuance of mortgage-backed securities (MBS);

• changes to the nature of the guarantees of Fannie Mae and Freddie Mac and the market implications of such changes;

• errors in our financial models or changes in assumptions;

• requirements to write down the value of certain assets;

• changes in prevailing interest rates;

• our ability to successfully mitigate our risks through hedging strategies;

• changes to our servicer ratings;

• the accuracy and completeness of information about borrowers and counterparties;

• our ability to maintain our technology systems and our ability to adapt such systems for future operating environments;

• failure of our internal security measures or breach of our privacy protections;

• failure of our vendors to comply with servicing criteria;

• the loss of the services of our senior managers;

• failure to attract and retain a highly skilled work force;

• changes in public opinion concerning mortgage originators or debt collectors;

• changes in accounting standards; and

• conflicts of interest with our principal stockholder.

All of the factors are difficult to predict, contain uncertainties that may materially affect actual results, and may be beyond our control. New factors emerge from time to time, and it is not possible for our management to predict all such factors or to assess the effect of each such new factor on our business. Although we believe that the assumptions underlying the forward-looking statements contained herein are reasonable, any of the assumptions could be inaccurate, and therefore any of these statements included herein may prove to be inaccurate. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by us or any other person that the results or conditions described in such statements or our objectives and plans will be achieved. Please refer to Item 1A. Risk Factors of Nationstar Mortgage Holdings Inc.'s Annual Report on Form 10-K filed on March 15, 2013 for further information on these and other factors affecting us.

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PART I.Financial Information

Item 1. Consolidated Financial Statements

NATIONSTAR MORTGAGE HOLDINGS INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(amounts in thousands)

	March 31, 2013			December 31, 2012
	(unaudited)
Assets
Cash and cash equivalents	$	220,039		$	152,649
Restricted cash	360,467			393,190
Accounts receivable	3,614,827			3,043,606
Mortgage loans held for sale	1,703,709			1,480,537
Mortgage loans held for investment, subject to nonrecourse debt - Legacy Assets, net of allowance for loan losses of $5,206 and $4,390, respectively	235,915			238,907
Reverse mortgage interests	978,652			750,273
Receivables from affiliates	8,927			12,604
Mortgage servicing rights – fair value	1,289,643			635,860
Mortgage servicing rights – amortized cost	10,941			10,973
Property and equipment, net of accumulated depreciation of $54,026 and $48,806, respectively	77,407			75,026
Real estate owned (REO), net	15,487			10,467
Other assets	369,551			322,051
Total assets	$	8,885,565		$	7,126,143
Liabilities and stockholders' equity
Notes payable	$	3,409,886		$	3,601,586
Unsecured senior notes	1,669,146			1,062,635
Payables and accrued liabilities	1,529,898			631,431
Derivative financial instruments	26,895			20,026
Mortgage servicing liabilities	82,931			83,238
Nonrecourse debt - Legacy Assets	98,388			100,620
Excess spread financing - fair value	498,906			288,089
Participating interest financing	745,263			580,836
Total liabilities	8,061,313			6,368,461
Commitments and contingencies – See Note 18	—			—
Preferred stock at $0.01 par value - 300,000 shares authorized, no shares issued and outstanding	—			—
Common stock at $0.01 par value - 1,000,000 shares authorized, 90,769 shares and 90,480 shares issued at March 31, 2013 and December 31, 2012, respectively	908			905
Additional paid-in-capital	561,571			556,056
Retained earnings	267,903			205,287
Treasury shares; 162 shares at cost	(6,554		)	—
Common shares held by subsidiary; 212 shares at cost	(4,566		)	(4,566		)
Total Nationstar Inc. stockholders' equity	819,262			757,682
Noncontrolling interest	4,990			—
Total equity	824,252			757,682
Total liabilities and equity	$	8,885,565		$	7,126,143

See accompanying notes to the consolidated financial statements.

5

NATIONSTAR MORTGAGE HOLDINGS INC. AND SUBSIDIARIES

UNAUDITED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

(amounts in thousands, except for earnings per share data)

	For the three months ended March 31,
	2013			2012
Revenues:
Servicing fee income	$	197,596		$	86,190
Other fee income	44,879			7,370
Total fee income	242,475			93,560
Gain on mortgage loans held for sale	188,587			70,512
Total revenues	431,062			164,072
Expenses and impairments:
Salaries, wages and benefits	134,987			61,665
General and administrative	125,642			29,112
Provision for loan losses	915			753
Loss on foreclosed real estate	1,092			2,265
Occupancy	5,935			2,782
Total expenses and impairments	268,571			96,577
Other income (expense):
Interest income	29,608			11,201
Interest expense	(92,374		)	(24,980		)
Loss on equity method investments	—			(117		)
Gain (loss) on interest rate swaps and caps	1,268			(268		)
Total other income (expense)	(61,498		)	(14,164		)
Income before taxes	100,993			53,331
Income tax expense	38,377			3,145
Net income	62,616			50,186
Less: Net income attributable to noncontrolling interests	—			—
Net income and comprehensive income attributable to Nationstar Inc.	$	62,616		$	50,186
Earnings per share:
Basic earnings per share	$	0.70		$	0.67
Diluted earnings per share	$	0.70		$	0.67
Weighted average shares:
Basic	89,293			74,388
Dilutive effect of stock awards	649			173
Diluted	89,942			74,561
Dividends declared per share	$	—		$	—

See accompanying notes to the consolidated financial statements.

6

NATIONSTAR MORTGAGE HOLDINGS INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(amounts in thousands)

	Common Shares	Members’ Units			Common Stock		Additional Paid-in Capital			Retained Earnings		Treasury shares			Common shares held by subsidiary			Total Nationstar Inc. Equity			Non-controlling interests		Total Stockholders’  Equity
Balance at December 31, 2011	—	$	281,309		$	—	$	—		$	—	$	—		$	—		$	281,309		$	—	$	281,309
Contributions from parent – FIF HE	—	12,764			—		—			—		—			—			12,764			—		12,764
LLC conversion of equity to common shares	70,000	(294,073		)	700		293,373			—		—			—			—			—		—
Common stock issuance	19,167	—			192		246,508			—		—			—			246,700			—		246,700
Shares issued under incentive plan	1,293	—			13		(13		)	—		—			—			—			—		—
Share-based compensation	—	—			—		13,342			—		—			—			13,342			—		13,342
Excess tax benefit from share-based compensation	—	—			—		2,846			—		—			—			2,846			—		2,846
Withholding tax related to share based settlement of common stock by management	—	—			—		—			—		—			(4,566		)	(4,566		)	—		(4,566		)
Net income	—	—			—		—			205,287		—			—			205,287			—		205,287
Balance at December 31, 2012	90,460	—			905		556,056			205,287		—			(4,566		)	757,682			—		757,682
(unaudited)
Shares issued under incentive plan	309	—			3		(3		)	—		—			—			—			—		—
Share-based compensation	—	—			—		2,858			—		—			—			2,858			—		2,858
Excess tax benefit from share-based compensation	—	—			—		2,660			—		—			—			2,660			—		2,660
Withholding tax related to share based settlement of common stock by management	—	—			—		—			—		(6,554		)	—			(6,554		)	—		(6,554		)
Contributions from joint venture members to non-controlling interests	—	—			—		—			—		—			—			—			4,990		4,990
Net income	—	—			—		—			62,616		—			—			62,616			—		62,616
Balance at March 31, 2013	90,769	$	—		$	908	$	561,571		$	267,903	$	(6,554	)	$	(4,566	)	$	819,262		$	4,990	$	824,252

See accompanying notes to the consolidated financial statements.

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NATIONSTAR MORTGAGE HOLDINGS INC. AND SUBSIDIARIES

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS

(amounts in thousands)

	For the three months ended March 31,
	2013			2012
Operating activities
Net income	$	62,616		$	50,186
Adjustments to reconcile net income to net cash (used in) / provided by operating activities:
Share-based compensation	2,858			2,395
Provision for loan losses	915			753
Loss on foreclosed real estate	1,092			2,265
Loss on equity method investments	—			117
(Gain) / loss on derivatives including ineffectiveness on interest rate swaps and caps	(1,268		)	268
Fair value changes in excess spread financing	23,891			4,852
Depreciation and amortization	3,901			1,531
Fair value changes in mortgage servicing rights	9,659			(495		)
Amortization/accretion of mortgage servicing rights at amortized cost	(275		)	(633		)
Amortization (accretion) of premiums/discounts	9,509			1,922
Gain on mortgage loans held for sale	(188,587		)	(70,512		)
Mortgage loans originated and purchased, net of fees	(3,781,116		)	(1,189,942		)
Proceeds on sale of and payments of mortgage loans held for sale	3,694,859			1,303,096
Net tax effect of stock grants	(2,660		)	—
Changes in assets and liabilities:
Accounts receivable, including servicing advances, net	81,094			40,685
Receivables from affiliates	3,677			806
Reverse mortgage funded advances	(178,181		)	(112,738		)
Other assets	(9,276		)	(8,471		)
Payables and accrued liabilities	(104,947		)	109,198
Net cash (used in)/provided by operating activities	(372,239		)	135,283

Continued on following page.

8

NATIONSTAR MORTGAGE HOLDINGS INC. AND SUBSIDIARIES

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Continued)

(amounts in thousands)

	For the three months ended March 31,
	2013			2012
Investing activities
Property and equipment additions, net of disposals	(6,282		)	(2,564		)
Deposits on reverse mortgage servicing rights, net	(50,198		)	—
Deposits on/purchase of forward mortgage servicing rights, net of liabilities incurred	(266,625		)	(347		)
Loan repurchases from Ginnie Mae	(8,815		)	(2,426		)
Proceeds from sales of REO	4,157			2,955
Net cash (used in)/provided by investing activities	(327,763		)	(2,382		)
Financing activities
Issuance of Senior Unsecured Notes, net	599,269			—
Transfers (to) / from restricted cash, net	32,723			(90,951		)
Issuance of common stock, net of IPO issuance costs	—			249,550
Issuance of participating interest financing	166,646			115,438
Issuance of excess spread financing	192,730			—
Decrease in notes payable	(191,700		)	(105,425		)
Repayment of nonrecourse debt – Legacy assets	(2,612		)	(3,135		)
Repayment of excess servicing spread financing	(20,881		)	(2,123		)
Debt financing costs	(9,750		)	(2,706		)
Net tax benefit for stock grants issued	2,660			—
Contributions from joint venture member to noncontrolling interests	4,990			—
Redemption of shares for stock vesting	(6,554		)	—
Cash settlement on derivative financial instruments	(129		)	—
Net cash provided by financing activities	767,392			160,648
Net increase in cash and cash equivalents	67,390			293,549
Cash and cash equivalents at beginning of period	152,649			62,445
Cash and cash equivalents at end of period	$	220,039		$	355,994
Supplemental disclosures of non-cash activities
Transfer of mortgage loans held for investment to REO at fair value	$	1,454		$	1,340
Mortgage servicing rights resulting from sale or securitization of mortgage loans	31,268			13,066
Tax related share-based settlement of common stock	6,554			—
Liabilities incurred from purchase of forward mortgage servicing rights	365,567			811

See accompanying notes to the consolidated financial statements.

9

NATIONSTAR MORTGAGE HOLDINGS INC. AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

(dollars in thousands, unless otherwise stated)

1. Nature of Business, Corporate Reorganization, Basis of Presentation and Material Transactions

Nature of Business

Nationstar Mortgage Holdings Inc. (Nationstar Inc. or the Company) is a Delaware corporation. Nationstar Inc. is a holding company that conducts no operating activities and owns no significant assets other than through its interests in its subsidiaries. Through its subsidiaries, Nationstar Inc. is engaged primarily in the servicing of residential mortgage loans for others and the origination and selling or securitization of single-family conforming mortgage loans to government-sponsored entities (GSE) or other third-party investors in the secondary market. Nationstar Mortgage LLC (Nationstar) is the Company's principal operating subsidiary.

Corporate Reorganization

On February 24, 2012, the Company filed a registration statement on Form S-1, for the offering of 19,166,667 shares of its common stock. The registration statement became effective on March 7, 2012. Under the terms of the offering, all of the equity interests in the Company transferred from FIF HE Holdings LLC to two direct, wholly-owned subsidiaries and the Company issued 19,166,667 shares of $0.01 par value common stock at an initial offering price of $14.00 per share. The offering transformed the Company into a publicly-traded company.

In conjunction with the initial public offering of Nationstar Inc., Nationstar became a wholly-owned indirect subsidiary of Nationstar Inc. Prior to the reorganization and initial public offering (Reorganization), Nationstar was a wholly-owned subsidiary of FIF HE Holdings LLC (FIF). Nationstar Inc. was formed solely for the purpose of reorganizing the structure of FIF and Nationstar so that the common stock issuer was a corporation rather than a limited liability company. As such, investors own common stock rather than equity interests in a limited liability company. The Reorganization has been accounted for as a reorganization under common control and, accordingly, there was no change in the basis of the assets and liabilities. As part of the Reorganization, FIF exchanged its equity in Nationstar for 70,000,000 shares of common stock of Nationstar Inc.

Basis of Presentation

The consolidated financial statements include the accounts of Nationstar Inc., its wholly-owned subsidiaries, and other entities in which the Company has a controlling financial interest, and those variable interest entities (VIEs) where Nationstar Inc.'s wholly-owned subsidiaries are the primary beneficiaries. Nationstar Inc. applies the equity method of accounting to investments when the entity is not a VIE and Nationstar Inc. is able to exercise significant influence, but not control, over the policies and procedures of the entity but owns less than 50% of the voting interests. Intercompany balances and transactions have been eliminated. Results of operations, assets and liabilities of VIEs are included from the date that Nationstar Inc. became the primary beneficiary through the date Nationstar Inc. ceases to be the primary beneficiary.

The interim consolidated financial statements are unaudited; however, in the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation of the results of the interim periods have been included. The consolidated interim financial statements of Nationstar Inc. have been prepared in accordance with generally accepted accounting principles for interim information and in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X as promulgated by the Securities and Exchange Commission (SEC). Accordingly, the financial statements do not include all of the information and footnotes required by accounting principles generally accepted in the United States (GAAP) for complete financial statements and should be read in conjunction with the audited consolidated financial statements and notes thereto included in Nationstar Inc.'s Annual Report on Form 10-K filed on March 15, 2013. The results of operations for the three month period ended March 31, 2013, are not necessarily indicative of the results that may be expected for the year ended December 31, 2013. Certain prior period amounts have been reclassified to conform to the current period presentation. Nationstar Inc. evaluated subsequent events through the date these interim consolidated financial statements were issued.

Material First Quarter Transactions

In January 2013, Nationstar entered into a mortgage servicing rights purchase and sale agreement (the Purchase Agreement) with a financial institution. Under the Purchase Agreement, the Company agreed to purchase the rights to service approximately 1.3 million residential mortgage loans with a total UPB of approximately $215 billion, and approximately $5.8 billion of related servicing advance receivables. Approximately 47% of these loans (by UPB) are owned, insured or guaranteed

10

by Fannie Mae, Freddie Mac or Ginnie Mae, and the remaining 53% of these loans are non-conforming loans in private label securitizations.

The aggregate purchase price is approximately $7.1 billion, which is expected to be funded through a combination of cash on hand, the proceeds of a co-investment by Newcastle Investment Corp. (Newcastle), and certain funds managed by Fortress Investment Group LLC (Fortress), the proceeds of advance financing facilities, and/or other issuances of debt. On January 31, 2013, Nationstar closed on the MSRs and associated servicing advance receivables with respect to those loans owned, insured or guaranteed by Fannie Mae and Freddie Mac. On February 1, 2013, Nationstar closed on the MSRs and associated servicing advance receivables with respect to those loans owned, insured or guaranteed by Ginnie Mae. Subject to customary closing conditions, the Company expects to close on the majority of the remaining MSRs in stages during the second or third quarter of 2013. During February 2013, the Company boarded approximately $15.3 billion of the acquired agency portfolio balance with the remaining acquired Fannie Mae, Freddie Mac, and Ginnie Mae portfolios to be completed by June 2013. The remaining private label securitization portfolios are expected to board onto the servicing system through the third quarter of 2013.

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2. Recent Accounting Developments

Accounting Standards Update No 2013-01, Balance Sheet: Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities (ASU 2013-01) was created to address issues caused when putting Accounting Standard Update 2011-11 into place and eliminate diversity in practice. The update clarifies that Accounting Standard Update 2011-11 applies to entities that are accounting for derivatives under ASC 815 including bifurcated embedded derivatives, repurchase agreements and reverse repurchase agreements, and securities borrowing and securities lending transactions that are offset under ASC 210-20-45 or ASC 815-10-45, an enforceable master netting arrangement or similar agreement. The Company adopted ASU 2013-01 on January 1, 2013. The adoption of ASU 2013-01 did not have a material impact on our financial condition, liquidity or results of operations.

Accounting Standards Update No 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income (ASU 2013-02) was issued to improve reporting of reclassification of items out of accumulated other comprehensive income by requiring entities to report the effect of any significant reclassifications on the respective line items on the income statement when the amount is required to be reclassified in its entirety in the same reporting period. Additionally, for items that are not required to be reclassified completely to net income, the Company will be required to cross reference other disclosures that provide additional information about the amounts. The information provided about amounts that are reclassified out of accumulated other comprehensive income must be reported by component. The amendments of this update were effective beginning December 15, 2012. The adoption of ASU 2013-02 did not have a material impact on our financial condition, liquidity or results of operations.

3. Variable Interest Entities and Securitizations

Nationstar has been the transferor in connection with a number of securitizations or asset-backed financing arrangements, from which Nationstar has continuing involvement with the underlying transferred financial assets. Nationstar aggregates these securitizations or asset-backed financing arrangements into two groups: 1) securitizations of residential mortgage loans, that were accounted for as sales and 2) financings accounted for as secured borrowings.

On securitizations of residential mortgage loans, Nationstar’s continuing involvement typically includes acting as servicer for the mortgage loans held by the trust and holding beneficial interests in the trust. Nationstar’s responsibilities as servicer include, among other things, collecting monthly payments, maintaining escrow accounts, providing periodic reports and managing insurance in exchange for a contractually specified servicing fee.

Nationstar also maintains various agreements with special purpose entities (SPEs), under which Nationstar transfers mortgage loans and/or servicing advance receivables on residential mortgage loans in exchange for cash. These SPEs issue debt supported by collections on the transferred mortgage loans and/or servicing advance receivables. These transfers do not qualify for sale treatment because Nationstar continues to retain control over the transferred assets. As a result, Nationstar accounts for these transfers as financings and continues to carry the transferred assets and recognizes the related liabilities on Nationstar’s consolidated balance sheets. Collections on the mortgage loans and/or servicing advance receivables pledged to the SPEs are used to repay principal and interest and to pay the expenses of the entity. The holders of these beneficial interests issued by these SPEs do not have recourse to Nationstar and can only look to the assets of the SPEs themselves for satisfaction of the debt.

A variable interest entity (VIE) is an entity that has either a total equity investment that is insufficient to permit the entity to finance its activities without additional subordinated financial support or whose equity investors lack the characteristics of a controlling financial interest. A VIE is consolidated by its primary beneficiary, which is the entity that, through its variable interests has both the power to direct the activities of a VIE that most significantly impact the VIE's economic performance and the obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE.

Nationstar consolidates the SPEs created for the purpose of issuing debt supported by collections on loans and servicing advance receivables that have been transferred to the SPEs as VIEs, and Nationstar is the primary beneficiary of these VIEs. Nationstar consolidates the assets and liabilities of the VIEs into its consolidated financial statements.

A summary of the assets and liabilities of Nationstar’s transactions with VIEs included in the Company’s consolidated financial statements as of March 31, 2013 and December 31, 2012 is presented in the following tables (in thousands):

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	March 31, 2013		December 31, 2012
	Transfers Accounted for as Secured Borrowings		Transfers Accounted for as Secured Borrowings
ASSETS
Restricted cash	$	145,908	$	247,531
Reverse mortgage interests	695,723		542,037
Accounts receivable	1,971,502		2,656,277
Mortgage loans held for investment, subject to nonrecourse debt	219,198		224,207
REO	2,697		2,039
Total Assets	$	3,035,028	$	3,672,091
LIABILITIES
Notes payable	$	2,095,013	$	2,294,925
Payables and accrued liabilities	2,838		3,415
Derivative financial instruments	4,987		6,118
Nonrecourse debt–Legacy Assets	98,388		100,620
Participating interest financing	745,263		580,836
Total Liabilities	$	2,946,489	$	2,985,914

A summary of the outstanding collateral and certificate balances for securitization trusts, including any retained beneficial interests and MSRs, that were not consolidated by Nationstar for the periods indicated are as follows (in thousands):

	March 31, 2013		December 31, 2012
Total collateral balances	$	4,031,005	$	4,134,513
Total certificate balances	4,039,553		4,136,316
Total mortgage servicing rights at fair value	32,922		30,940

Nationstar has not retained any variable interests in the unconsolidated securitization trusts that were outstanding as of March 31, 2013 or December 31, 2012, and therefore does not have a significant maximum exposure to loss related to these unconsolidated VIEs. A summary of mortgage loans transferred to unconsolidated securitization trusts that are 60 days or more past due and the credit losses incurred in the unconsolidated securitization trusts are presented below (in thousands):

	For the three months ended
	March 31, 2013				March 31, 2012
	Principal Amount of Loans 60 Days or More Past Due		Credit Losses		Principal Amount of Loans 60 Days or More Past Due		Credit Losses
Total securitization trusts	$	1,179,325	$	64,858	$	936,006	$	79,751

Certain cash flows received from securitization trusts related to the transfers of mortgage loans accounted for as sales for the dates indicated were as follows (in thousands):

	For the three months ended
	March 31, 2013				March 31, 2012
	Servicing Fees Received		Loan Repurchases		Servicing Fees Received		Loan Repurchases
Total securitization trusts	$	6,791	$	—	$	7,861	$	—

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4. Consolidated Statement of Cash Flows-Supplemental Disclosure

Total interest paid for the three months ended March 31, 2013 and 2012 was approximately $51.8 million and $14.0 million, respectively. Income taxes paid for the three months ended March 31, 2013 was $46.1 million. There were no income taxes paid for the three months ended March 31, 2012.

5. Accounts Receivable

Accounts receivable consist primarily of accrued interest receivable on mortgage loans and securitizations, collateral deposits on surety bonds, and advances made to nonconsolidated securitization trusts and various taxing authorities, as required under various servicing agreements related to delinquent loans, which are ultimately repaid from the securitization trusts.

Nationstar acquires servicer advances in conjunction with the acquisition of mortgage servicing rights. Acquired servicer advances are recorded at their relative fair value amounts on the acquisition date, and any recorded discounts are accreted into interest income on a modified cost recovery method as the related servicer advances are recovered either through repayment from the borrower, liquidation of the underlying mortgage loans, or through a modification and recovery of the outstanding servicer advance balance from the securitization trust.

Accounts receivable consist of the following (in thousands):

	March 31, 2013		December 31, 2012
Servicer advances, net of purchase discount	$	3,351,989	$	2,800,690
Accrued servicing fees	101,349		90,231
Receivables from trusts	30,398		39,029
Reverse mortgage - other	13,171		28,448
Accrued interest	3,920		3,801
Other	114,000		81,407
Total accounts receivable	$	3,614,827	$	3,043,606

In conjunction with Nationstar's June 2012 acquisition of mortgage servicing rights from Aurora Bank FSB and Aurora Loan Services LLC (collectively Aurora), the Company acquired approximately $1.7 billion of servicer advances. Based on the acquisition date relative fair values of these acquired servicer advances, Nationstar recorded an $81.8 million purchase discount. Nationstar accretes this purchase discount into interest income as the related servicer advances are recovered. During the three months ended March 31, 2013, the Company accreted $6.1 million of the purchase discount from recovered servicer advances. Nationstar did not record any accretion of purchase discount from recovered servicer advances during the three months ended March 31, 2012.

6. Mortgage Loans Held for Sale and Investment

Mortgage loans held for sale

Nationstar maintains a strategy of originating mortgage loan products primarily for the purpose of selling to GSEs or other third party investors in the secondary market. Generally, all newly originated mortgage loans held for sale are delivered to third-party purchasers or securitized shortly after origination.

Nationstar has elected to measure newly originated prime residential mortgage loans held for sale at fair value, as permitted under ASC 825, Financial Instruments. Nationstar estimates fair value by evaluating a variety of market indicators, including recent trades and outstanding forward sales commitments, calculated on an aggregate basis (see Note 14 – Fair Value Measurements). In connection with Nationstar's election to measure mortgage loans held for sale at fair value, Nationstar is not permitted to defer the loan origination fees, net of direct loan origination costs associated with these loans.

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Mortgage loans held for sale consist of the following (in thousands):

	March 31, 2013		December 31, 2012
Mortgage loans held for sale – unpaid principal balance	$	1,646,387	$	1,426,182
Mark-to-market adjustment	57,322		54,355
Total mortgage loans held for sale	$	1,703,709	$	1,480,537

Nationstar had no mortgage loans held for sale on a nonaccrual status at March 31, 2013 or December 31, 2012.

A reconciliation of the changes in mortgage loans held for sale to the amounts presented in the consolidated statements of cash flows for the dates indicated is presented in the following table (in thousands):

	For the three months ended
	March 31, 2013			March 31, 2012
Mortgage loans held for sale – beginning balance	$	1,480,537		$	458,626
Mortgage loans originated and purchased, net of fees	3,781,116			1,189,942
Proceeds on sale of and payments of mortgage loans held for sale	(3,549,535		)	(1,270,007		)
Transfer of mortgage loans held for sale to held for investment due to bankruptcy and pending foreclosures	(8,409		)	—
Mortgage loans held for sale – ending balance	$	1,703,709		$	378,561

Mortgage loans held for investment, subject to nonrecourse debt - Legacy Assets, net

Mortgage loans held for investment, subject to nonrecourse debt – Legacy Assets, net principally consist of nonconforming or subprime mortgage loans securitized which serve as collateral for the issued debt. These loans were transferred on October 1, 2009 from mortgage loans held for sale at fair value on the transfer date, as determined by the present value of expected future cash flows, with no valuation allowance recorded. The difference between the undiscounted cash flows expected and the investment in the loan is recognized as interest income on a level-yield method over the life of the loan. Contractually required payments for interest and principal that exceed the undiscounted cash flows expected at transfer are not recognized as a yield adjustment or as a loss accrual or a valuation allowance. Increases in expected cash flows subsequent to the transfer are recognized prospectively through adjustment of the yield on the loans over the remaining life. Decreases in expected cash flows subsequent to transfer are recognized as a valuation allowance.

An allowance for loan losses is established by recording a provision for loan losses in the consolidated statement of income and comprehensive income when management believes a loss has occurred on a loan held for investment. When management determines that a loan held for investment is partially or fully uncollectible, the estimated loss is charged against the allowance for loan losses. Recoveries on losses previously charged to the allowance are credited to the allowance at the time the recovery is collected.

Nationstar accounts for the loans that were transferred to held for investment from held for sale during 2009 in a manner similar to ASC 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality. At the date of transfer, management evaluated such loans to determine whether there was evidence of deterioration of credit quality since acquisition and if it was probable that Nationstar would be unable to collect all amounts due according to the loan’s contractual terms. The transferred loans were aggregated into separate pools of loans based on common risk characteristics (loan delinquency). Nationstar considers expected prepayments, and estimates the amount and timing of undiscounted expected principal, interest, and other cash flows for each aggregated pool of loans. The determination of expected cash flows utilizes internal inputs such as prepayment speeds and credit losses. These internal inputs require the use of judgment and can have a significant impact on the accretion of income and/or valuation allowance. Nationstar determines the excess of the pool’s scheduled contractual principal and contractual interest payments over all cash flows expected as of the transfer date as an amount that should not be accreted (nonaccretable difference). The remaining amount is accreted into interest income over the remaining life of the pool of loans (accretable yield).

Over the life of the transferred loans, management continues to estimate cash flows expected to be collected. Nationstar evaluates at the balance sheet date whether the present value of the loans determined using the effective interest rates has decreased, and if so, records an allowance for loan loss. The present value of any subsequent increase in the transferred loans cash flows expected to be collected is used first to reverse any existing allowance for loan loss related to such loans. Any

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remaining increase in cash flows expected to be collected are used to adjust the amount of accretable yield recognized on a prospective basis over the remaining life of the loans.

Nationstar accounts for its allowance for loan losses for all other mortgage loans held for investment in accordance with ASC 450-20, Loss Contingencies. The allowance for loan losses represents management’s best estimate of probable losses inherent in the loans held for investment portfolio. Mortgage loans held for investment portfolio is comprised primarily of large groups of homogeneous residential mortgage loans. These loans are evaluated based on the loan’s present delinquency status. The entire allowance is available to absorb probable credit losses from the entire held for investment portfolio.

Mortgage loans held for investment, subject to nonrecourse debt—Legacy Assets, net as of the dates indicated include (in thousands):

	March 31, 2013			December 31, 2012
Mortgage loans held for investment, subject to nonrecourse debt - Legacy Assets, net – unpaid principal balance	$	348,822		$	354,154
Transfer discount
Accretable	(18,889		)	(19,749		)
Non-accretable	(88,812		)	(91,108		)
Allowance for loan losses	(5,206)			(4,390		)
Total mortgage loans held for investment, subject to nonrecourse debt - Legacy Assets, net	$	235,915		$	238,907

The changes in accretable yield on loans transferred to mortgage loans held for investment, subject to nonrecourse debt- Legacy Assets were as follows (in thousands):

	Three months ended March 31, 2013			Year ended December 31, 2012
Accretable Yield
Balance at the beginning of the period	$	19,749		$	22,392
Additions	—			—
Accretion	(852		)	(3,548		)
Reclassifications from (to) nonaccretable discount	(8		)	905
Disposals	—			—
Balance at the end of the period	$	18,889		$	19,749

Nationstar may periodically modify the terms of any outstanding mortgage loans held for investment, subject to nonrecourse debt-Legacy Assets, net for loans that are either in default or in imminent default. Modifications often involve reduced payments by borrowers, modification of the original terms of the mortgage loans, forgiveness of debt and/or increased servicing advances. As a result of the volume of modification agreements entered into, the estimated average outstanding life in this pool of mortgage loans has been extended. Nationstar records interest income on the transferred loans on a level-yield method. To maintain a level-yield on these transferred loans over the estimated extended life, Nationstar reclassified approximately $0.9 million for the year ended December 31, 2012 from nonaccretable discount. Furthermore, Nationstar considers the decrease in principal, interest, and other cash flows expected to be collected arising from the transferred loans as an impairment. Nationstar recorded provisions for loan losses of $0.9 million for the three months ended March 31, 2013, and $0.8 million for the three months ended March 31, 2012.

Nationstar collectively evaluates all mortgage loans held for investment, subject to nonrecourse debt-Legacy Assets, net for impairment. The changes in the allowance for loan losses on mortgage loans held for investment, subject to nonrecourse debt-Legacy Assets, net were as follows (in thousands) for the dates indicated:

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	Three months ended March 31, 2013
	Performing			Non-Performing			Total
Balance at the beginning of the period	$	771		$	3,619		$	4,390
Provision for loan losses	90			825			915
Charge-offs	(55		)	(44		)	(99		)
Balance at the end of the period	$	806		$	4,400		$	5,206
Ending balance – Collectively evaluated for impairment	$	266,854		$	81,968		$	348,822

	Year ended December 31, 2012
	Performing			Non-Performing			Total
Balance at the beginning of the period	$	1,641		$	4,183		$	5,824
Provision for loan losses	1,365			525			1,890
Recoveries on loans previously charged-off	—			—			—
Charge-offs	(2,235		)	(1,089		)	(3,324		)
Balance at the end of the period	$	771		$	3,619		$	4,390
Ending balance – Collectively evaluated for impairment	$	260,219		$	93,935		$	354,154

Loan delinquency and loan-to-value ratio (LTV) are common credit quality indicators that Nationstar monitors and utilizes in its evaluation of the adequacy of the allowance for loan losses, of which the primary indicator of credit quality is loan delinquency. LTV refers to the ratio of comparing the loan’s unpaid principal balance to the property’s collateral value. Loan delinquencies and unpaid principal balances are updated monthly based upon collection activity. Collateral values are updated from third-party providers on a periodic basis. The collateral values used to derive the LTVs shown below were obtained at various dates, but the majority were within the last twenty-four months. For an event requiring a decision based at least in part on the collateral value, Nationstar takes its last known value provided by a third party and then adjusts the value based on the applicable home price index.

The following table provides the outstanding unpaid principal balance of Nationstar’s mortgage loans held for investment by credit quality indicators as of dates indicated. Performing loans refer to loans that are less than 90 days delinquent. Non-performing loans refer to loans that are greater than 90 days delinquent.

	March 31, 2013		December 31, 2012
	(in thousands)
Credit Quality by Delinquency Status
Performing	$	266,854	$	260,219
Non-Performing	81,968		93,935
Total	$	348,822	$	354,154
Credit Quality by Loan-to-Value Ratio
Less than 60	$	38,677	$	39,436
Less than 70 and more than 60	16,685		16,581
Less than 80 and more than 70	22,954		20,890
Less than 90 and more than 80	26,521		27,988
Less than 100 and more than 90	30,918		32,570
Greater than 100	213,067		216,689
Total	$	348,822	$	354,154

Reverse mortgage interests

Reverse mortgages (known as Home Equity Conversion Mortgages or HECMs) provide seniors (62 and older) with a loan secured by their home. During 2012, Nationstar acquired reverse mortgage servicing rights and funded but unsecuritized advances from third-parties. Nationstar recorded the assets acquired and obligations assumed at relative fair value on the acquisition date, which included the funded advances and a servicing asset or liability, net of cash paid or received. Any

17

premium or discount associated with the recording of the funded advances is accreted into interest income as the underlying HECMs are liquidated.

As part of the acquisition of the reverse mortgage servicing rights, Nationstar is obligated in its capacity as servicer to fund future borrower advances, which include fees paid to taxing authorities for borrowers' unpaid taxes and insurance, mortgage insurance premiums and payments made to borrowers for line of credit draws on reverse mortgages. In addition, Nationstar capitalizes the servicing fees it earns for servicing the reverse mortgage interests. All advances funded by Nationstar and the acquired funded advances are recorded as reverse mortgage interests on the Company's consolidated balance sheet. Nationstar includes the cash outflow from funding these advances as operating activities and the securitization cash inflow as a financing activity in the consolidated statement of cash flows.

In February 2013, Nationstar acquired certain fixed and adjustable rate reverse mortgage loans with an unpaid principal balance totaling $83.1 billion for a purchase price of $50.2 million. In conjunction with this acquisition, Nationstar entered into an agreement with NIC Reverse Loan LLC, a subsidiary of Newcastle, to sell a participating interest of the acquired reverse mortgage loans. Both Nationstar and NIC Reverse Loan LLC are entitled to the related percentage interest of all amounts received with respect to the reverse mortgage loans, net of payments of servicing fees and the reimbursement to Nationstar of servicing advances. Nationstar receives a fixed payment per loan for servicing these reverse mortgage loans. Nationstar records these reverse mortgage loans as reverse mortgage interests on the Company's consolidated balance sheet.

Nationstar periodically securitizes certain of these funded advances through issuance of Home Equity Conversion Mortgage Backed Securities (HMBS) to third-party security holders which are guaranteed by certain GSEs. These transfers of funded advances into HMBS are accounted for as secured borrowings with the HMBS presented as participating interest financing on the Company's consolidated balance sheet.

Nationstar receives a monthly servicing fee, which is recorded as either interest income or servicing fee income on the consolidated statement of income and comprehensive income based upon if the related advance was either funded by or acquired by Nationstar. Nationstar accounts for outstanding and future reverse mortgage interests as financing receivables in accordance with ASC 310, Receivables. Interest income is accrued monthly based upon the borrower interest rate applied to the HECM outstanding principal balance of reverse mortgage interests. Interest income and other unpaid taxes and fees are capitalized as part of the outstanding principal balance. Interest expense on the participating interest financing is accrued monthly based upon the underlying HMBS rates and is recorded to interest expense in the consolidated statement of income and comprehensive income.

These advances include due and payable advances, which are recovered upon the sale of the subject property, and defaulted advances that can be securitized and sold. As of March 31, 2013 and December 31, 2012, Nationstar had $978.7 million and $750.3 million, respectively, in outstanding reverse mortgage interests.When Nationstar determines that a loss on the advance balance is probable and that the carrying balance may be partially or fully uncollectible, an allowance for loan loss is established by recording a provision for loan losses in the consolidated statement of income and comprehensive income.

Reverse mortgage interests as of the dates indicated include (in thousands):

	March 31, 2013			December 31, 2012
UPB of advances previously securitized by Nationstar	$	695,723		$	542,037
UPB of advances unsecuritized	283,491			208,699
Allowance for losses - reverse mortgage interests	(562		)	(463		)
Total reverse mortgage interests	$	978,652		$	750,273

Nationstar collectively evaluates all reverse mortgage interest assets for impairment. Nationstar recorded a provision for loan losses related to its reverse mortgage interests of $0.6 million for the three months ended March 31, 2013 and $0.5 million for the year ended December 31, 2012.

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7. Mortgage Servicing Rights (MSRs)

MSRs at fair value

Nationstar recognizes MSRs related to all existing residential mortgage loans transferred to a third party in a transfer that meets the requirements for sale accounting and for which the servicing rights are retained. Additionally, Nationstar may acquire the rights to service residential mortgage loans that do not relate to assets transferred by Nationstar through the purchase of these rights from third parties.

Nationstar identifies MSRs related to all existing forward residential mortgage loans transferred to a third party in a transfer that meets the requirements for sale accounting or through the acquisition of rights to service forward residential mortgage loans that do not relate to assets transferred by Nationstar through the purchase of these rights from third parties as a class of MSRs. Nationstar applies fair value accounting to this class of MSRs, with all changes in fair value recorded as charges or credits to servicing fee income in accordance with ASC 860-50, Servicing Assets and Liabilities.

MSRs arise from contractual agreements between Nationstar and investors in mortgage securities and mortgage loans. Nationstar records MSR assets when it sells loans on a servicing-retained basis, at the time of securitization or through the acquisition or assumption of the right to service a financial asset. Under these contracts, Nationstar performs loan servicing functions in exchange for fees and other remuneration.

The fair value of the MSRs is based upon the present value of the expected future contractual cash flows related to servicing these loans. Nationstar receives a base servicing fee ranging from 0.25% to 0.50% annually on the remaining outstanding principal balances of the loans. The servicing fees are collected from investors. Nationstar determines the fair value of the MSRs by the use of a cash flow model that incorporates prepayment speeds, delinquencies, discount rate, and other assumptions (including servicing costs) that management believes are consistent with the assumptions other major market participants use in valuing the MSRs. Certain of the forward loans underlying the MSRs are prime agency and government conforming residential forward mortgage loans and as such are more interest rate sensitive whereas the remaining MSRs are more credit sensitive. The nature of the forward loans underlying the MSRs affects the assumptions that management believes other major market participants use in valuing the MSRs. Nationstar obtains third-party valuations for a majority its MSRs to assess the reasonableness of the fair value calculated by the cash flow model.

Certain of the forward loans underlying the mortgage servicing rights carried at fair value that are owned by Nationstar are credit sensitive in nature and the value of these mortgage servicing rights are more likely to be affected from changes in credit losses than from interest rate movement. The remaining forward loans underlying Nationstar’s MSRs held at fair value are prime agency and government conforming residential mortgage loans for which the value of these MSRs are more likely to be affected from interest rate movement than changes in credit losses.

Nationstar used the following weighted average assumptions in estimating the fair value of MSRs for the dates indicated:

Credit Sensitive MSRs	March 31, 2013		December 31, 2012
Discount rate	15.05	%	18.11	%
Total prepayment speeds	18.51	%	22.42	%
Expected weighted-average life	4.92 years		4.12 years
Credit losses	18.02	%	24.68	%
Interest Rate Sensitive MSRs	March 31, 2013		December 31, 2012
Discount rate	10.60	%	10.62	%
Total prepayment speeds	13.53	%	17.08	%
Expected weighted-average life	6.35 years		5.19 years
Credit losses	11.61	%	11.09	%

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The activity of MSRs carried at fair value is as follows for the dates indicated (in thousands):

	Three months ended March 31, 2013			Year ended December 31, 2012
Fair value at the beginning of the period	$	635,860		$	251,050
Additions:
Servicing resulting from transfers of financial assets	31,268			58,607
Purchases of servicing assets	632,174			394,445
Changes in fair value:
Due to changes in valuation inputs or assumptions used in the valuation model	43,361			5,500
Other changes in fair value	(53,020		)	(73,742		)
Fair value at the end of the period	$	1,289,643		$	635,860
Unpaid principal balance of forward loans serviced for others
Credit sensitive loans	$	201,730,585		$	114,629,399
Interest sensitive loans	20,113,675			16,494,985
Total owned loans	$	221,844,260		$	131,124,384

The following table shows the hypothetical effect on the fair value of the MSRs using various unfavorable variations of the expected levels of certain key assumptions used in valuing these assets at March 31, 2013 and December 31, 2012 (in thousands):

	Discount Rate						Total Prepayment Speeds						Credit Losses
	100 bps Adverse Change			200 bps Adverse Change			10% Adverse Change			20% Adverse Change			10% Adverse Change			20% Adverse Change
March 31, 2013
Mortgage servicing rights	$	(30,092	)	$	(63,907	)	$	(96,409	)	$	(189,467	)	$	(95,440	)	$	(192,032	)
December 31, 2012
Mortgage servicing rights	$	(17,060	)	$	(34,419	)	$	(66,037	)	$	(124,995	)	$	(77,072	)	$	(157,433	)

These sensitivities are hypothetical and should be evaluated with care. The effect on fair value of a 10% variation in assumptions generally cannot be determined because the relationship of the change in assumptions to the fair value may not be linear. Additionally, the impact of a variation in a particular assumption on the fair value is calculated while holding other assumptions constant. In reality, changes in one factor may lead to changes in other factors (e.g., a decrease in total prepayment speeds may result in an increase in credit losses), which could impact the above hypothetical effects.

MSRs at amortized cost

Additionally, Nationstar has acquired servicing rights for reverse mortgage loans. For this class of servicing rights, Nationstar applies the amortization method (i.e., lower of cost or market) with the capitalized cost of the MSRs amortized in proportion and over the period of the estimated net future servicing income and recognized as an adjustment to servicing fee income. The expected period of the estimated net servicing income is based, in part, on the expected prepayment period of the underlying reverse mortgages. This class of MSRs is periodically evaluated for impairment. For purposes of measuring impairment, MSRs are stratified based on predominant risk characteristics of the underlying serviced loans. These risk characteristics include loan type (fixed or adjustable rate), term and interest rate. Impairment, if any, represents the excess of amortized cost of an individual stratum over its estimated fair value and is recognized through a valuation allowance.

As of March 31, 2013, Nationstar owns the right to service certain reverse mortgage MSRs with an unpaid principal balance of $28.2 billion. The initial carrying amount of these MSRs is based on the relative fair value of the purchased assets and liabilities including reverse mortgage interests. These MSRs are subsequently accounted for using the amortization method.

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Amortization / accretion is recorded as service fee income on the statement of operations and comprehensive income. Nationstar utilizes a variety of assumptions in assessing the fair value of its servicing assets or liabilities, with the primary assumptions including discount rates and the expected weighted average life. At March 31, 2013, no impairment was identified. Interest and servicing fees collected on reverse mortgage interests are included as a component of either interest or service fee income.

The activity of MSRs carried at amortized cost is as follows for the date indicated (in thousands):

	Three months ended						Year ended
	March 31, 2013						December 31, 2012
	Assets			Liabilities			Assets			Liabilities
Activity of MSRs at amortized cost
Balance at the beginning of the period	$	10,973		$	83,238		$	—		$	—
Additions:
Purchase /Assumptions of servicing rights/obligations	—			—			12,415			89,800
Deductions:
Amortization/Accretion	(32		)	(307		)	(1,442		)	(6,562		)
Balance at end of the period	$	10,941		$	82,931		$	10,973		$	83,238

Subserviced loans

In addition to the two classes of MSRs that Nationstar services for others, Nationstar also subservices loans on behalf of owners of MSRs or loans for a fee. Nationstar has no recorded value for its subservicing arrangements. At March 31, 2013 and December 31, 2012, the unpaid principal balances under subservicing arrangements were $42.7 billion and $45.7 billion, respectively.

Total servicing and ancillary fees from Nationstar’s servicing portfolio (including subservicing) of residential mortgage loans are presented in the following table for the periods indicated (in thousands):

	For the three months ended March 31,
	2013		2012
Servicing fees	$	182,709	$	60,977
Ancillary fees	36,870		25,958
Total servicing and ancillary fees	$	219,579	$	86,935

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8. Other Assets

Other assets consisted of the following (in thousands):

	March 31, 2013		December 31, 2012
Derivative financial instruments (see Note 10)	$	182,589	$	152,189
Loans subject to repurchase right from Ginnie Mae	74,645		72,156
Deferred financing costs	57,469		46,780
Deferred tax asset (see Note 13)	9,892		23,737
Margin call deposits	14,152		10,920
Deposits pending on mortgage servicing rights acquisitions	9,986		2,040
Prepaid expenses	9,649		6,083
Other	11,169		8,146
Total other assets	$	369,551	$	322,051

For certain loans sold to the Government National Mortgage Association (Ginnie Mae), Nationstar as the servicer has the unilateral right to repurchase without Ginnie Mae’s prior authorization any individual loan in a Ginnie Mae securitization pool if that loan meets certain criteria, including being delinquent greater than 90 days. Once Nationstar has the unilateral right to repurchase the delinquent loan, Nationstar has effectively regained control over the loan, and under GAAP, must re-recognize the loan on its balance sheet and establish a corresponding repurchase liability regardless of Nationstar’s intention to repurchase the loan. Nationstar’s re-recognized loans included in other assets and the corresponding liability in payables and accrued liabilities was $74.6 million at March 31, 2013 and $72.2 million at December 31, 2012.

In January 2013, Nationstar acquired Equifax Settlement Services LLC (ESS) for a total purchase price of $12.5 million. In an initial purchase price allocation, Nationstar has recorded $7.5 million of goodwill in Other assets on its consolidated balance sheet.

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9. Payables and Accrued Liabilities

Payables and accrued liabilities consist of the following (in thousands):

	March 31, 2013		December 31, 2012
MSR purchases payable including advances (see Note 1)	$	865,487	$	14,243
Reverse mortgage payables	113,601		103,068
Mortgage insurance premiums and reserves	105,563		77,967
Loans subject to repurchase from Ginnie Mae	74,645		72,156
Accrued interest	57,274		31,938
Government sponsored entities	55,740		27,071
Servicing payables	63,651		73,967
Taxes	26,209		50,908
Lease payables	27,170		29,553
Accrued bonus and payroll	27,077		58,083
Repurchase reserves	20,902		18,511
Payables to securitization trusts	19,195		7,946
Legal and professional fees	13,815		27,860
Cancelled lease reserves	6,661		7,188
Other	52,908		30,972
Total payables and accrued liabilities	$	1,529,898	$	631,431

10. Derivative Financial Instruments

Nationstar enters into interest rate lock commitments (IRLCs) with prospective borrowers. These commitments are carried at fair value in accordance with ASC 815, Derivatives and Hedging. ASC 815 clarifies that the expected net future cash flows related to the associated servicing of a loan should be included in the measurement of all written loan commitments that are accounted for at fair value through earnings. The estimated fair values of IRLCs are based on the fair value of the related mortgage loans which is based on observable market data and is recorded in other assets within the consolidated balance sheets. The initial and subsequent changes in the value of IRLCs are a component of gain on mortgage loans held for sale.

Nationstar actively manages the risk profiles of its IRLCs and mortgage loans held for sale on a daily basis. To manage the price risk associated with IRLCs, Nationstar enters into forward sales of MBS in an amount equal to the portion of the IRLC expected to close, assuming no change in mortgage interest rates. In addition, to manage the interest rate risk associated with mortgage loans held for sale, Nationstar enters into forward sale commitments to deliver mortgage loan inventory to investors. The estimated fair values of forward sales of MBS and forward sale commitments are based on exchange prices or the dealer market price and are recorded as a component of other assets and mortgage loans held for sale, respectively, in the consolidated balance sheets. The initial and subsequent changes in value on forward sales of MBS and forward sale commitments are a component of gain on mortgage loans held for sale.

Nationstar may occasionally enter into contracts with other mortgage lenders to purchase residential mortgage loans at a future date, which are referred to as Loan Purchase Commitments (LPCs). LPCs are accounted for as derivatives under ASC 815 and recorded at fair value in other assets on Nationstar's consolidated balance sheet. Subsequent changes in LPCs are recorded as a charge or credit to gain on mortgage loans held for sale.

Periodically, Nationstar has entered into interest rate swap agreements to hedge the interest payment on the warehouse debt and securitization of its mortgage loans held for sale. These interest rate swap agreements generally require Nationstar to pay a fixed interest rate and receive a variable interest rate based on LIBOR. Unless designated as an accounting hedge, Nationstar records gains and losses on interest rate swaps as a component of gain/(loss) on interest rate swaps and caps in Nationstar’s consolidated statements of income and comprehensive income. Unrealized losses on undesignated interest rate derivatives are separately disclosed under operating activities in the consolidated statements of cash flows. Interest rate swaps designated as cash flow hedges under ASC 815 are recorded at fair value on the Company’s consolidated balance sheet, with any changes in fair value related to the effective portion of the hedge being recorded as an adjustment to other comprehensive income. To qualify as a cash flow hedge, the hedge must be highly effective at reducing the risk associated with the exposure being hedged and must be formally designated at hedge inception. Nationstar considers a hedge to be highly effective if the change in fair

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value of the derivative hedging instrument is within 80% to 125% of the change in the fair value of the hedged item attributable to the hedged risk. Ineffective portions of the cash flow hedge are reflected in earnings as they occur as a component of interest expense.

In conjunction with the Reorganization, FIF contributed outstanding interest rate swaps in March 2012 to Nationstar. These interest rate swaps on ABS debt generally require Nationstar to pay a fixed interest rate and receive a variable interest rate based on LIBOR. The outstanding interest rate swaps have not been designated as accounting hedges during the three months ended March 31, 2013 and 2012. Any changes in fair value are recorded as a component of gains or losses on interest rate swaps and caps in Nationstar’s consolidated statement of income and comprehensive income.

Associated with the Company's derivatives is $14.2 million and $10.9 million in margin call deposits recorded in other assets on the Company's balance sheet as of March 31, 2013 and December 31, 2012, respectively.

The following tables provide the outstanding notional balances and fair values of outstanding positions for the dates indicated, and recorded gains/(losses) during the periods indicated (in thousands):

	Expiration Dates	Outstanding Notional		Fair Value		Recorded Gains / (Losses)
For the three months ended March 31, 2013
MORTGAGE LOANS HELD FOR SALE
Loan sale commitments	2013	$	324	$	18	$	(3	)
OTHER ASSETS
IRLCs	2013-2014	7,114,578		180,174		30,126
Forward MBS trades	2013	990,702		1,918		1,030
LPCs	2013	60,561		497		(756		)
LIABILITIES
Interest rate swaps and caps	2014-2015	637,852		4,987		1,004
Interest rate swaps on ABS debt	2013-2017	668,985		1,582		264
Forward MBS trades	2013	5,605,889		20,306		(8,332		)
LPCs	2013	2,837		20		66
For the year ended December 31, 2012
MORTGAGE LOANS HELD FOR SALE
Loan sale commitments	2013	$	445	$	21	$	(613	)
OTHER ASSETS
IRLCs	2013	4,921,963		150,048		138,746
Forward MBS trades	2013	977,900		888		888
LPCs	2013	112,624		1,253		1,253
LIABILITIES
Interest rate swaps and caps	2013-2015	726,168		6,120		420
Interest rate swaps on ABS debt (1)	2013-2017	654,192		1,846		(1,414		)
Forward MBS trades	2013	3,964,721		11,974		(6,144		)
LPCs	2013	78,839		86		(86		)

⁽¹⁾  In March 2012, Nationstar received interest rate swaps from FIF as a part of the reorganization.

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11. Indebtedness

Notes Payable

A summary of the balances of notes payable for the dates indicated is presented below (in thousands).

	March 31, 2013				December 31, 2012
	Outstanding		Collateral Pledged		Outstanding		Collateral Pledged
Servicing Segment Notes Payable
MBS advance financing facility	$	174,965	$	192,278	$	185,817	$	206,622
Securities repurchase facility (2011)	11,774		55,603		11,774		55,603
2010-ABS advance financing facility	194,217		237,865		194,833		233,208
Nationstar Agency advance financing facility	575,035		608,663		476,091		549,284
MSR note	3,239		11,299		4,627		12,328
2012-AW agency advance financing facility	—		—		100,000		135,343
2012-C ABS advance financing facility	574,437		653,676		657,027		742,238
2012-R ABS advance financing facility	326,821		376,374		374,739		428,758
2012-W ABS advance financing facility	424,503		497,745		492,235		566,332
Reverse participations financing facility	104,799		127,424		65,943		76,455
MBS advance financing facility (2012)	60,012		68,992		—		—
Originations Segment Notes Payable
$750 million warehouse facility	495,751		517,002		245,287		285,281
$150 million warehouse facility	128,900		133,081		224,790		241,867
$750 million warehouse facility (2011)	197,257		204,617		356,104		371,836
$300 million warehouse facility (2009)	80,847		84,216		87,747		91,403
ASAP+ facility	57,329		55,704		124,572		124,596
Total notes payable	$	3,409,886	$	3,824,539	$	3,601,586	$	4,121,154

Servicing Segment Notes Payable

MBS advance financing facility - Nationstar has a one-year committed facility agreement with a GSE, under which Nationstar may transfer to the GSE certain servicing advance receivables against the transfer of funds by the GSE. This facility has the capacity to purchase up to $325.0 million in eligible servicing advance receivables. Effective April 1, 2013, this capacity increased to $775.0 million. The interest rate is based on LIBOR plus a spread of 2.50% to 4.00%. The maturity date of this facility is currently December 2013.

Securities repurchase facility (2011) - In December 2011, Nationstar entered into a securities repurchase facility with a financial services company. The master repurchase agreement (MRA) states that Nationstar may from time to time transfer to the financial services company eligible securities against the transfer of funds by the financial services company, with a simultaneous agreement by the financial services company to transfer such securities to Nationstar at a certain date, or on demand by Nationstar, against the transfer of funds from Nationstar. Additionally, the financial services company may elect to extend the transfer date for an additional 90 days at mutually agreed upon terms. The interest rate is based on LIBOR plus a margin of 3.50%. As of March 31, 2013, Nationstar has pledged the Company’s $55.6 million outstanding retained interest in the outstanding Nonrecourse debt—Legacy Assets securitization which was structured as a financing.

2010-ABS advance financing facility - In November 2010, Nationstar executed the 2010-ABS Advance Financing Facility with a financial institution. This facility has the capacity to purchase up to $300.0 million of advance receivables. The interest rate is based on LIBOR plus a spread of 3.00%. This facility matures in May 2014. This debt is nonrecourse to Nationstar.

Nationstar Agency advance financing facility - In January 2013, Nationstar amended and restated the Agency Advance Financing Facility with a financial institution. This facility has a variable funding note (VFN) with the capacity to borrow up to $600.0 million and the interest rate is based on LIBOR plus a spread of 1.20% to 3.75% depending upon the class of the note. The maturity date of the VFN is October 2013. Nationstar also issued $300.0 million in term notes to institutional investors.

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The notes have a weighted average interest rate of 1.46% and a weighted average term of 3 years. The VFN and the term notes are secured by servicing advance receivables and the financing is nonrecourse to Nationstar.

MSR note - In connection with an October 2009 MSR acquisition, Nationstar executed a four-year note agreement with a GSE. As collateral for this note, Nationstar has pledged Nationstar’s rights, title, and interest in the acquired servicing portfolio. The interest rate is based on LIBOR plus 2.50%. The maturity date of this facility is October 2013.

2012-AW Agency advance financing facility - In June 2012, Nationstar executed the 2012-AW Agency Advance Financing Facility with a financial institution. This facility had the capacity to borrow up to $100.0 million and the interest rate was based on LIBOR plus a spread of 2.50%. The maturity date of this facility was June 2013. This facility was secured by servicing advance receivables and was nonrecourse to Nationstar. On January 31, 2013, Nationstar terminated this revolving financing facility and repaid all outstanding balances as of the termination date.

2012-C ABS advance financing facility - In June 2012, Nationstar executed the 2012-C ABS Advance Financing Facility with a financial institution. This facility has the capacity to borrow up to $700.0 million and the interest rate is based on LIBOR plus a spread of 3.25% to 4.25%. The maturity date of this facility is November 2013. This facility is secured by servicing advance receivables and is nonrecourse to Nationstar.

2012-R ABS advance financing facility - In June 2012, Nationstar executed the 2012-R ABS Advance Financing Facility with a financial institution. This facility has the capacity to borrow up to $400.0 million and the interest rate is based on LIBOR plus a spread of 3.37% to 8.00%. The maturity date of this facility is June 2014. This facility is secured by servicing advance receivables and is nonrecourse to Nationstar.

2012-W ABS advance financing facility - In June 2012, Nationstar executed the 2012-W ABS Advance Financing Facility with a financial institution. This facility has the capacity to borrow up to $500.0 million and the interest rate is based on LIBOR plus a spread of 3.75%. The maturity date of this facility is June 2013. This facility is secured by servicing advance receivables and is nonrecourse to Nationstar.

Reverse participations and max claim buyouts financing facility - In June 2012, Nationstar executed a reverse participations and max claim buyouts financing facility with a financial institution. This facility has capacity to borrow up to $150.0 million and the interest rate is based on LIBOR plus a spread of 4.00%. The maturity date of this facility is June 2014. This facility is partially secured by reverse mortgage loans.

MBS advance financing facility (2012) - In December 2012, Nationstar executed a MBS Advance Financing Facility with a financial institution. This facility has the capacity to borrow up to $125.0 million through April 14, 2013, $100.0 million for the period April 15, 2013 through July 14, 2013 and $50.0 million for any date thereafter. The interest rate is LIBOR plus a spread of 3.50%. The maturity date of this facility is January 2014. This facility is secured by servicing advance receivables.

Originations Segment Notes Payable

$750 million warehouse facility - In February 2010, as amended, Nationstar executed a MRA with a financial institution, which will expire in January 2014. The MRA states that from time to time Nationstar may enter into transactions, for an aggregate amount of $750.0 million (which amount was increased from $375.0 million in January 2013), in which Nationstar agrees to transfer to the same financial institution certain mortgage loans against the transfer of funds by the same financial institution, with a simultaneous agreement by the same financial institution to transfer such mortgage loans to Nationstar at a date certain, or on demand by Nationstar, against the transfer of funds from Nationstar. The interest rate is based on LIBOR plus a spread ranging from 1.75% to 2.50%.

$150 million warehouse facility - Nationstar has a MRA with a financial services company, as amended, which will expire in April 2014. The facility has a committed amount of $150.0 million (which amount was increased to $300.0 million in April 2013) and an uncommitted amount of $150.0 million (which amount was increased to $300.0 million in April 2013) that can be granted at the discretion of the financial institution. The MRA states that from time to time Nationstar may enter into transactions in which Nationstar agrees to transfer to the financial services company certain mortgage loans or MBS against the transfer of funds by the financial services company, with a simultaneous agreement by the financial services company to transfer such mortgage loans or MBS to Nationstar at a certain date, or on demand by Nationstar, against the transfer of funds from Nationstar. The interest rate is based on LIBOR plus a spread of 0.75% - 3.50%.

$750 million warehouse facility (2011) - In March 2011, as amended, Nationstar executed an MRA with a financial institution, under which Nationstar may enter into transactions, for an aggregate amount of $750.0 million in which Nationstar agrees to transfer to the same financial institution certain mortgage loans and certain securities against the transfer of funds by the same financial institution, with a simultaneous agreement by the same financial institution to transfer such mortgage loans and

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securities to Nationstar at a date certain, or on demand by Nationstar, against the transfer of funds from Nationstar. The maturity is August 2013 with the interest rate based on LIBOR plus a spread of 2.25% to 3.00%, which varies based on the underlying transferred collateral.

$300 million warehouse facility (2009) - In October 2009, as amended, Nationstar executed a MRA with a financial institution. This MRA states that from time to time Nationstar may enter into transactions, for an aggregate amount of $300.0 million (which amount was increased from $100.0 million in March 2013), in which Nationstar agrees to transfer to the financial institution certain mortgage loans against the transfer of funds by the financial institution, with a simultaneous agreement by the financial institution to transfer such mortgage loans to Nationstar at a certain date, or on demand by Nationstar, against the transfer of funds from Nationstar. The interest rate is based on LIBOR plus a spread of 2.50%. The maturity date of this MRA with the financial institution is March 2014.

ASAP + facility - During 2009, Nationstar began executing As Soon As Pooled Plus agreements with a GSE, under which Nationstar transfers to the GSE eligible mortgage loans that are to be pooled into the GSE MBS against the transfer of funds by the GSE. The interest rate is based on LIBOR plus a spread of 1.50%. These agreements typically have a maturity of up to 45 days.

Unsecured Senior Notes

A summary of the balances of unsecured senior notes is presented below (in thousands):

	March 31, 2013		December 31, 2012
$285 million face value, 10.875% interest rate payable semi-annually, due April 2015	$	282,046	$	281,676
$375 million face value, 9.625% interest rate payable semi-annually, due May 2019	379,896		380,232
$400 million face value, 7.875% interest rate payable semi-annually, due October 2020	400,704		400,727
$600 million face value, 6.500%, interest rate payable semi-annually, due July 2021	606,500		—
Total	$	1,669,146	$	1,062,635

In February 2013, Nationstar completed the offering of $400.0 million of unsecured senior notes, with a maturity date of July 2021. These notes were issued at par. In March 2013, Nationstar completed an additional offering of $200.0 million of the unsecured senior notes due July 2021. These notes were issued with an issue premium of $6.5 million for net cash proceeds before issuance costs of $606.5 million. Under the terms of these unsecured senior notes, we pay interest semiannually to the note holders at an interest rate of 6.500%. These unsecured senior notes were issued in a private placement and have not been registered under the Securities Act of 1933, as amended.

The indentures for the unsecured senior notes contain various covenants and restrictions that limit the Company's, Nationstar's, or certain of its subsidiaries’, ability to incur additional indebtedness, pay dividends, make certain investments, create liens, consolidate, merge or sell substantially all of their assets, or enter into certain transactions with affiliates. The indentures contain certain events of default, including (subject, in some cases, to customary cure periods and materiality thresholds) defaults based on (i) the failure to make payments under the indenture when due, (ii) breach of covenants, (iii) cross-defaults to certain other indebtedness, (iv) certain bankruptcy or insolvency events, (v) material judgments and (vi) invalidity of material guarantees.

The ratios included in the indentures for the senior notes are incurrence-based compared to the customary ratio covenants that are often found in credit agreements that require a company to maintain a certain ratio.

The expected maturities of Nationstar's senior unsecured notes based on contractual maturities are as follows (in thousands).

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Year	Amount
2014	$	—
2015	285,000
2016	—
2017	—
2018	—
Thereafter	1,375,000
Total	$	1,660,000

Legacy Asset and Other Financing

Nonrecourse Debt–Legacy Assets

In November 2009, Nationstar completed the securitization of approximately $222.0 million of ABS, which was structured as a secured borrowing. This structure resulted in Nationstar carrying the securitized loans as mortgages on Nationstar’s consolidated balance sheet and recognizing the asset-backed certificates acquired by third parties as nonrecourse debt, totaling approximately $98.4 million and $100.6 million at March 31, 2013, and December 31, 2012, respectively. The principal and interest on these notes are paid using the cash flows from the underlying mortgage loans, which serve as collateral for the debt. The interest rate paid on the outstanding securities is 7.50%, which is subject to an available funds cap. The total outstanding principal balance on the underlying mortgage loans serving as collateral for the debt was approximately $328.5 million and $336.9 million at March 31, 2013 and December 31, 2012, respectively. Accordingly, the timing of the principal payments on this nonrecourse debt is dependent on the payments received on the underlying mortgage loans. The unpaid principal balance on the outstanding notes was $114.4 million and $117.1 million at March 31, 2013 and December 31, 2012, respectively.

Excess Spread Financing Debt at Fair Value

In conjunction with Nationstar's acquisition of certain mortgage servicing rights on various pools of residential mortgage loans (the Portfolios), Nationstar has entered into sale and assignment agreements which are treated as financings with certain entities formed by Newcastle in which Newcastle and/or certain funds managed by Fortress own an interest. Nationstar, in transactions accounted for as financing arrangements, sold to such entities the right to receive a specified percentage of the excess cash flow generated from the Portfolios after receipt of a fixed basic servicing fee per loan.

Nationstar retains all ancillary income associated with servicing the Portfolios and the remaining portion of the excess cash flow after receipt of the fixed basic servicing fee. Nationstar continues to be the servicer of the Portfolios and provides all servicing and advancing functions. Newcastle has no prior or ongoing obligations associated with the Portfolios.

Contemporaneous with the above, Nationstar entered into refinanced loan agreements with Newcastle. Should Nationstar refinance any loan in the Portfolios, subject to certain limitations, Nationstar will be required to transfer the new loan or a replacement loan of similar economic characteristics into the Portfolios. The new or replacement loan will be governed by the same terms set forth in the sale and assignment agreement described above.

Nationstar has elected fair value accounting for these financing agreements.The total carrying amount of the outstanding excess spread financing agreements was $498.9 million and $288.1 million at March 31, 2013 and December 31, 2012, respectively.

The following table shows the hypothetical effect on fair value of excess spread financing using various unfavorable variations of the expected levels of certain key assumptions used in valuing these liabilities at the dates indicated (in thousands):

	Discount Rate				Total Prepayment Speeds				Credit Losses
	100 bps Adverse Change		200 bps Adverse Change		10% Adverse Change		20% Adverse Change		10% Adverse Change		20% Adverse Change
March 31, 2013
Excess spread financing	$	16,647	$	31,505	$	43,956	$	63,970	$	9,144	$	13,937
December 31, 2012
Excess spread financing	$	7,978	$	16,404	$	10,654	$	22,240	$	5,538	$	11,075

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As the fair value on the outstanding excess spread financing is linked to the future economic performance of certain acquired MSRs, any adverse changes in the acquired MSRs would inherently benefit the net carrying amount of the excess spread financing, while any beneficial changes in certain key assumptions used in valuing the acquired MSRs would negatively impact the net carrying amount of the excess spread financing.

These sensitivities are hypothetical and should be evaluated with care. The effect on fair value of a 10% variation in assumptions generally cannot be determined because the relationship of the change in assumptions to the fair value may not be linear. Additionally, the impact of a variation in a particular assumption on the fair value is calculated while holding other assumptions constant. In reality, changes in one factor may lead to changes in other factors (e.g., a decrease in total prepayment speeds may result in an increase in credit losses), which could impact the above hypothetical effects.

Participating Interest Financing

Participating interest financing represent the issuance of pools of Home Equity Conversion Mortgage Backed Securities (HMBS) to third-party security holders which are guaranteed by certain GSEs. Nationstar has accounted for the transfer of these advances in the related Home Equity Conversion Mortgages (HECM) loans as secured borrowings, retaining the initial reverse mortgage interests on its balance sheet, and recording the pooled HMBS as participating interest financing liabilities on the Company’s balance sheet. Monthly cash flows generated from the HECM loans are used to service the HMBS. The interest rate is based on the underlying HMBS rate with a range of 0.53% to 7.17%. The participating interest financing was $745.3 million and $580.8 million at March 31, 2013 and December 31, 2012, respectively.

Financial Covenants

As of March 31, 2013, Nationstar was in compliance with its covenants on its borrowing arrangements and credit facilities. These covenants generally relate to Nationstar’s tangible net worth, liquidity reserves, and leverage requirements.

12. General and Administrative Expenses

General and administrative expenses consist of the following for the dates indicated (in thousands):

	For the three months ended
	March 31, 2013		March 31, 2012
Servicing	$	47,772	$	11,079
Outsourcing	19,517		2,056
Legal and professional fees	17,333		5,102
Loan processing charges	11,564		1,065
Depreciation and amortization	3,901		1,531
Postage	3,850		1,314
Telecommunications and technology	3,304		1,251
Travel	3,229		821
Equipment	3,167		1,320
Dues and fees	2,870		918
Advertising	2,112		742
Stationary and office supplies	1,558		994
Other	5,465		919
Total general and administrative expenses	$	125,642	$	29,112

13. Income Taxes

Income tax expense was as follows (in thousands):

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	For three months ended
	March 31, 2013			March 31, 2012
Current
Federal	$	21,851		$	2,794
State	2,681			351
	24,532			3,145
Deferred
Federal	12,457			—
State	1,388			—
	13,845			—
Total	$	38,377		$	3,145
Effective tax rate	38.0		%	5.9		%

The financial statements for the period January 1, 2012 up to the Reorganization do not include income tax expense or benefit or any current or deferred income tax assets or liabilities. Nationstar Inc.'s corporate subsidiaries were subject to income taxes prior to the Reorganization, however, income tax expense (primarily state) and related tax liabilities were not material for presentation purposes.

Net deferred tax assets totaled $9.9 million at March 31, 2013 and $23.7 million at December 31, 2012. A valuation allowance of $45.6 million was recorded against deferred tax assets at December 31, 2012 and March 31, 2013 as management believes that it is more likely than not that not all of the deferred tax assets will be realized.

14. Fair Value Measurements

ASC 820, Fair Value Measurements and Disclosures, provides a definition of fair value, establishes a framework for measuring fair value, and requires expanded disclosures about fair value measurements. The standard applies when GAAP requires or allows assets or liabilities to be measured at fair value and, therefore, does not expand the use of fair value in any new circumstance.

ASC 820 emphasizes that fair value is a market-based measurement, not an entity-specific measurement. Therefore, a fair value measurement should be determined based on the assumptions that market participants would use in pricing the asset or liability. As a basis for considering market participant assumptions in fair value measurements, ASC 820 establishes a three-tiered fair value hierarchy based on the level of observable inputs used in the measurement of fair value (e.g., Level 1 representing quoted prices for identical assets or liabilities in an active market; Level 2 representing values using observable inputs other than quoted prices included within Level 1; and Level 3 representing estimated values based on significant unobservable inputs). In addition, ASC 820 requires an entity to consider all aspects of nonperformance risk, including its own credit standing, when measuring the fair value of a liability. Under ASC 820, related disclosures are segregated for assets and liabilities measured at fair value based on the level used within the hierarchy to determine their fair values.

The following describes the methods and assumptions used by Nationstar in estimating fair values:

Cash and Cash Equivalents, Restricted Cash – The carrying amount reported in the consolidated balance sheets approximates fair value.

Mortgage Loans Held for Sale – Nationstar originates mortgage loans in the U.S. that it intends to sell to Fannie Mae, Freddie Mac, and Ginnie Mae (collectively, the Agencies). Additionally, Nationstar holds mortgage loans that it intends to sell into the secondary markets via whole loan sales or securitizations. Nationstar measures newly originated prime residential mortgage loans held for sale at fair value.

Mortgage loans held for sale are typically pooled together and sold into certain exit markets, depending upon underlying attributes of the loan, such as agency eligibility, product type, interest rate, and credit quality. Mortgage loans held for sale are valued using a market approach by utilizing either: (i) the fair value of securities backed by similar mortgage loans, adjusted for certain factors to approximate the fair value of a whole mortgage loan, including the value attributable to mortgage servicing and credit risk, (ii) current commitments to purchase loans or (iii) recent observable market trades for similar loans, adjusted

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for credit risk and other individual loan characteristics. As these prices are derived from market prices, Nationstar classifies these valuations as Level 2 in the fair value disclosures.

Mortgage Loans Held for Investment, subject to nonrecourse debt – Legacy Assets – Nationstar determines the fair value of loans held for investment, subject to nonrecourse debt – Legacy Assets using internally developed valuation models. These valuation models estimate the exit price Nationstar expects to receive in the loan’s principal market. Although Nationstar utilizes and gives priority to observable market inputs such as interest rates and market spreads within these models, Nationstar typically is required to utilize internal inputs, such as prepayment speeds, credit losses, and discount rates. These internal inputs require the use of judgment by Nationstar and can have a significant impact on the determination of the loan’s fair value. As these prices are derived from a combination of internally developed valuation models and quoted market prices, Nationstar classifies these valuations as Level 3 in the fair value disclosures.

Mortgage Servicing Rights – Fair Value – Nationstar recognizes MSRs related to all existing residential mortgage loans transferred to a third party in a transfer that meets the requirements for sale accounting and for which the servicing rights are retained. Additionally, Nationstar may acquire the rights to service residential mortgage loans that do not relate to assets transferred by Nationstar through the purchase of these rights from third parties. Nationstar estimates the fair value of its forward MSRs using a process that combines the use of a discounted cash flow model and analysis of current market data to arrive at an estimate of fair value. The cash flow assumptions and prepayment assumptions used in the model are based on various factors, with the key assumptions being mortgage prepayment speeds, discount rates, and credit losses. These assumptions are generated and applied based on collateral stratifications including product type, remittance type, geography, delinquency and coupon dispersion. These assumptions require the use of judgment by Nationstar and can have a significant impact on the determination of the MSR’s fair value. Periodically, management obtains third party valuations of a portion of the portfolio to assess the reasonableness of the fair value calculations provided by the cash flow model. Because of the nature of the valuation inputs, Nationstar classifies these valuations as Level 3 in the fair value disclosures.

Reverse Mortgage Interests – Nationstar’s reverse mortgage interests consist of fees paid to taxing authorities for borrowers' unpaid taxes and insurance, and payments made to borrowers for line of credit draws on reverse mortgages. These advances include due and payable advances, which are recovered upon the foreclosure and sale of the subject property, and defaulted advances that can be securitized. Nationstar estimates the fair value using a market approach by utilizing the fair value of securities backed by similar advances on reverse mortgage loans, adjusted for certain factors. Nationstar classifies these valuations as Level 2 in the fair value disclosures.

REO – Nationstar determines the fair value of REO properties through the use of third-party appraisals and broker price opinions, adjusted for estimated selling costs. Such estimated selling costs include realtor fees and other anticipated closing costs. These values are adjusted to take into account factors that could cause the actual liquidation value of foreclosed properties to be different than the appraised values. This valuation adjustment is based upon Nationstar’s historical experience with REO. REO is classified as Level 3 in the fair value disclosures.

Derivative Instruments – Nationstar enters into a variety of derivative financial instruments as part of its hedging strategy. The majority of these derivatives are exchange-traded or traded within highly active dealer markets. In order to determine the fair value of these instruments, Nationstar utilizes the exchange price or dealer market price for the particular derivative contract; therefore, these contracts are classified as Level 2. In addition, Nationstar enters into IRLCs and LPCs with prospective borrowers and other loan originators. These commitments are carried at fair value based on the fair value of related mortgage loans which are based on observable market data. Nationstar adjusts the outstanding IRLCs with prospective borrowers based on an expectation that it will be exercised and the loan will be funded. IRLCs and LPCs are recorded in other assets or derivative financial instruments in the consolidated balance sheets. These commitments are classified as Level 2 in the fair value disclosures.

Notes Payable – Notes payable consists of outstanding borrowings on Nationstar's warehouse and advance financing facilities. As the underlying warehouse and advance finance facilities bear interest at a rate that is periodically adjusted based on a market index, the carrying amount reported on the consolidated balance sheet approximates fair value. Nationstar classifies these valuations as Level 3 in the fair value disclosures.

Unsecured Senior Notes – The fair value of unsecured senior notes is based on quoted market prices and is considered Level 1 from the market observable inputs used to determine fair value.

Nonrecourse Debt – Legacy Assets – Nationstar estimates fair value based on the present value of future expected discounted cash flows with the discount rate approximating current market value for similar financial instruments. These prices are derived from a combination of internally developed valuation models and quoted market prices, and are classified as Level 3.

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Excess Spread Financing – Nationstar estimates fair value based on the present value of future expected discounted cash flows with the discount rate approximating current market value for similar financial instruments. The cash flow assumptions and prepayment assumptions used in the model are based on various factors, with the key assumptions at March 31, 2013 being mortgage prepayment speeds of 15.0%, average life of 4.2 years, and discount rate of 13.1%. Key assumptions at December 31, 2012, were mortgage prepayment speeds of 14.0%, average life of 4.2 years and discount rate of 15.0%. Changes in fair value to the excess spread financing are recorded as a component of service fee income in Nationstar's consolidated statement of operations. As these prices are derived from a combination of internally developed valuation models and quoted market prices based on the value of the underlying MSRs, Nationstar classifies these valuations as Level 3 in the fair value disclosures.

The range of various assumptions used in Nationstar's valuation of excess spread financing were as follows:

Excess Spread financing	Prepayment Speeds	Average Life (years)	Discount Rate
For three months ended March 31, 2013
Low	9.2%	3.0 years	10.3%
High	21.1%	4.8 years	15.4%
For the year ended December 31, 2012
Low	9.4%	3.0 years	13.6%
High	22.4%	4.5 years	15.5%

Participating Interest Financing – Nationstar estimates the fair value using a market approach by utilizing the fair value of securities backed by similar participating interests in reverse mortgage loans. Nationstar classifies these valuations as Level 2 in the fair value disclosures.

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The estimated carrying amount and fair value of Nationstar’s financial instruments and other assets and liabilities measured at fair value on a recurring basis is as follows for the dates indicated (in thousands):

			March 31, 2013
			Recurring Fair Value Measurements
	Total Fair Value		Level 1		Level 2		Level 3
ASSETS
Mortgage loans held for sale(1)	$	1,703,709	$	—	$	1,703,709	$	—
Mortgage servicing rights – fair value(1)	1,289,643		—		—		1,289,643
Other assets:
IRLCs	180,174		—		180,174		—
Forward MBS trades	1,918		—		1,918		—
LPCs	497		—		497		—
Total assets	$	3,175,941	$	—	$	1,886,298	$	1,289,643
LIABILITIES
Derivative financial instruments
Interest rate swaps and caps	$	4,987	$	—	$	4,987	$	—
Interest rate swaps on ABS debt	1,582		—		1,582		—
Forward MBS trades	20,306		—		20,306		—
LPCs	20		—		20		—
Excess spread financing (at fair value)	498,906		—		—		498,906
Total liabilities	$	525,801	$	—	$	26,895	$	498,906
			December 31, 2012
			Recurring Fair Value Measurements
	Total Fair Value		Level 1		Level 2		Level 3
ASSETS
Mortgage loans held for sale(1)	$	1,480,537	$	—	$	1,480,537	$	—
Mortgage servicing rights – fair value(1)	635,860		—		—		635,860
Other assets:
IRLCs	150,048		—		150,048		—
Forward MBS trades	888		—		888		—
LPCs	1,253		—		1,253		—
Total assets	$	2,268,586	$	—	$	1,632,726	$	635,860
LIABILITIES
Derivative financial instruments
Interest rate swaps and caps	$	6,120	$	—	$	6,120	$	—
Interest rate swaps on ABS debt	1,846		—		1,846		—
Forward MBS trades	11,974				11,974
LPCs	86		—		86		—
Excess spread financing (at fair value)	288,089		—		—		288,089
Total liabilities	$	308,115	$	—	$	20,026	$	288,089

⁽¹⁾  Based on the nature and risks of these assets and liabilities, the Company has determined that presenting them as a single class is appropriate.

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The table below presents a reconciliation for all of Nationstar’s Level 3 assets and liabilities measured at fair value on a recurring basis for the dates indicated (in thousands):

	ASSETS			LIABILITIES
For the three months ended March 31, 2013	Mortgage servicing rights			Excess spread financing
Beginning balance	$	635,860		$	288,089
Transfers into Level 3	—			—
Transfers out of Level 3	—			—
Total gains or losses
Included in earnings	(9,659		)	23,891
Included in other comprehensive income	—			—
Purchases, issuances, sales and settlements
Purchases	632,174			—
Issuances	31,268			207,581
Sales	—			—
Settlements	—			(20,655		)
Ending balance	$	1,289,643		$	498,906

	ASSETS			LIABILITIES
For the year ended December 31, 2012	Mortgage servicing rights			Excess spread financing
Beginning balance	$	251,050		$	44,595
Transfers into Level 3	—			—
Transfers out of Level 3	—			—
Total gains or losses
Included in earnings	(68,242		)	10,683
Included in other comprehensive income	—			—
Purchases, issuances, sales and settlements
Purchases	394,445			—
Issuances	58,607			272,676
Sales	—			—
Settlements	—			(39,865		)
Ending balance	$	635,860		$	288,089

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The table below presents the items which Nationstar measures at fair value on a nonrecurring basis (in thousands).

	Nonrecurring Fair Value Measurements						Total Estimated Fair Value		Total Gain (Loss) Included in Earnings
	Level 1		Level 2		Level 3
Three months ended March 31, 2013
Assets
REO(1)	$	—	$	—	$	15,487	$	15,487	$	(1,092	)
Total assets	$	—	$	—	$	15,487	$	15,487	$	(1,092	)
Year ended December 31, 2012
Assets
REO(1)	$	—	$	—	$	10,467	$	10,467	$	(2,864	)
Total assets	$	—	$	—	$	10,467	$	10,467	$	(2,864	)

⁽¹⁾  Based on the nature and risks of these assets and liabilities, the Company has determined that presenting them as a single class is appropriate.

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The table below presents a summary of the estimated carrying amount and fair value of Nationstar’s financial instruments (in thousands).

	March 31, 2013
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3
Financial assets:
Cash and cash equivalents	$	220,039	$	220,039	$	—	$	—
Restricted cash	360,467		360,467		—		—
Mortgage loans held for sale	1,703,709		—		1,703,709		—
Mortgage loans held for investment, subject to nonrecourse debt – Legacy assets	235,915		—		—		202,618
Reverse mortgage interests	978,652		—		1,034,509		—
Derivative instruments	182,589		—		182,589		—
Financial liabilities:
Notes payable	3,409,886		—		—		3,409,886
Unsecured senior notes	1,669,146		1,806,057		—		—
Derivative financial instruments	26,895		—		26,895		—
Nonrecourse debt - Legacy assets	98,388		—		—		100,066
Excess spread financing	498,906		—		—		498,906
Participating interest financing	745,263		—		747,998		—
	December 31, 2012
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3
Financial assets:
Cash and cash equivalents	$	152,649	$	152,649	$	—	$	—
Restricted cash	393,190		393,190		—		—
Mortgage loans held for sale	1,480,537		—		1,480,537		—
Mortgage loans held for investment, subject to nonrecourse debt – Legacy assets	238,907		—		—		220,755
Reverse mortgage interests	750,273		—		805,650		—
Derivative financial instruments	152,189		—		152,189		—
Financial liabilities:
Notes payable	3,601,586		—		—		3,601,586
Unsecured senior notes	1,062,635		1,151,997		—		—
Derivative financial instruments	20,026		—		20,026		—
Nonrecourse debt - Legacy assets	100,620		—		—		102,492
Excess spread financing	288,089		—		—		288,089
Participating interest financing	580,836		—		593,741		—

15. Share-Based Compensation

Share-based compensation is recognized in accordance with ASC 718, Compensation-Stock Compensation. This guidance requires all share-based payments to employees, including grants of employee stock options, to be recognized as an expense in the consolidated statements of operations, based on the fair values. The amount of compensation is measured at the fair value of the awards when granted and this cost is expensed over the required service period, which is normally the vesting period of the award.

Nationstar Inc. has adopted the 2012 Incentive Compensation Plan (2012 Plan), that offers equity-based awards to certain key employees of Nationstar, consultants, and non-employee directors. In connection with the initial public offering, on March 7, 2012, Nationstar Inc. made grants of restricted stock to management of 1,191,117 shares and also to non-employee directors of

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85,716 shares. As permitted under the 2012 plan, certain participants remitted a portion of their Nationstar Inc. common stock to Nationstar Mortgage LLC in payment of a portion of their federal tax withholdings on their vested shares. The participants paid the remainder of their required tax payments with cash. As a result of the above activity, Nationstar Mortgage LLC holds 161,651 shares of Nationstar Inc. common shares at their cost of $6.6 million.

The following table summarizes information about our restricted stock as of March 31, 2013 under the 2012 Plan (shares in thousands):

	Shares	Grant Date Fair Value	Remaining Contractual Term
Restricted stock granted in conjunction with the initial public offering in March 2012	1,277	$14.00	1.9
Grants issued subsequent to public offering	69	$29.95	2.1
Forfeited	(53)
Restricted stock outstanding at December 31, 2012	1,293
Grants issued in March 2013	288	$37.60	3.0
Forfeited	(16)
Shares returned to treasury to pay taxes	(162)
Restricted stock outstanding at March 31, 2013	1,403
Restricted stock unvested and expected to vest	923
Restricted stock vested and payable at March 31, 2013	—

The following table summarizes the expected future vesting schedule of the restricted stock grants (in thousands):

	2013	2014	2015	2016
Restricted stock expected to vest	20	413	413	77

In addition to the 2012 Plan, Nationstar management also has interests in certain of the predecessor parent company FIF’s restricted preferred units which fully vested on June 30, 2012. The weighted average grant date fair value of these units was $4.23. In conjunction with the final vesting under this plan, certain participants remitted a portion of their Nationstar Inc. common stock to Nationstar in payment of a portion of their federal tax withholdings on their vested shares. The participants paid the remainder of their required tax payments with cash. As a result of the above activity, Nationstar holds 212,156 shares of Nationstar Inc. common shares at their cost of $4.6 million. These shares are reflected in Nationstar Inc.'s consolidated balance sheet as common shares held by subsidiary, a contra equity account. The shares are expected to be held by Nationstar until they can be distributed to Nationstar Inc.

Total compensation expense, net of forfeitures, for the 2012 Plan for the three month endedMarch 31, 2013 and for both the 2012 Plan and the predecessor plan recognized for the three months ended March 31, 2012 was $3.0 million and $2.4 million, respectively. Nationstar expects to recognize $7.3 million of compensation expense in the last nine months of 2013, $4.9 million in 2014, $1.6 million in 2015 and $0.2 million in 2016.

16. Earnings Per Share

Net income per share is computed under the provisions of ASC 260, Earnings Per Share. Basic net income per share is computed based on the weighted-average number of common shares outstanding during the period. Diluted net income per share is computed based on the weighted-average number of common shares plus the effect of dilutive potential common shares outstanding during the period using the treasury stock method. Dilutive potential common shares represent outstanding restricted stock.

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17. Capital Requirements

Certain of Nationstar’s secondary market investors require various capital adequacy requirements, as specified in the respective selling and servicing agreements. To the extent that these mandatory, imposed capital requirements are not met, Nationstar’s secondary market investors may ultimately terminate Nationstar’s selling and servicing agreements, which would prohibit Nationstar from further originating or securitizing these specific types of mortgage loans. In addition, these secondary market investors may impose additional net worth or financial condition requirements based on an assessment of market conditions or other relevant factors.

Among Nationstar’s various capital requirements related to its outstanding selling and servicing agreements, the most restrictive of these requires Nationstar to maintain a minimum adjusted net worth balance of $532.9 million. As of March 31, 2013, Nationstar was in compliance with all of its selling and servicing capital requirements.

Additionally, Nationstar is required to maintain a minimum tangible net worth of at least $350.0 million as of each quarter-end related to its outstanding Master Repurchase Agreements on its outstanding repurchase facilities. As of March 31, 2013, Nationstar was in compliance with these minimum tangible net worth requirements.

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18. Commitments and Contingencies

Litigation and Regulatory Matters

In the ordinary course of business, Nationstar Inc. and its subsidiaries are routinely named as defendants in or parties to many pending and threatened legal actions and proceedings, including putative class actions and other litigation. These actions and proceedings are generally based on alleged violations of consumer protection, securities, employment, contract and other laws. The certification of any putative class action could substantially increase our exposure to damages. These actions and proceedings are generally based on alleged violations of consumer protection, securities, employment, contract and other laws, including the Fair Debt Collection Practices Act. Additionally, along with others in our industry, we are subject to repurchase claims and may continue to receive claims in the future, including through securitization vehicles and master servicing arrangements that we have acquired and from our Legacy Portfolio. Certain of the actual or threatened legal actions include claims for substantial compensatory, punitive and/or, statutory damages or claims for an indeterminate amount of damages.

Further, in the ordinary course of business the Company and its subsidiaries can be or are involved in governmental and regulatory examinations, information gathering requests, investigations and proceedings (both formal and informal), regarding the Company’s business, certain of which may result in adverse judgments, settlements, fines, penalties, injunctions or other relief. Such inquiries may include those into servicer foreclosure processes and procedures and lender-placed insurance. In particular, ongoing and other legal proceedings brought under state consumer protection statutes may result in a separate fine for each violation of the statute, which, particularly in the case of class action lawsuits, could result in damages substantially in excess of the amounts we earned form the underlying activities and that could have a material adverse effect on our liquidity and financial position.

The Company seeks to resolve all litigation and regulatory matters in the manner management believes is in the best interest of the Company and contests liability, allegations of wrongdoing and, where applicable, the amount of damages or scope of any penalties or other relief sought as appropriate in each pending matter. On at least a quarterly basis, the Company assesses its liabilities and contingencies in connection with outstanding legal and regulatory proceedings utilizing the latest information available. Where available information indicates that it is probable a liability has been incurred and the Company can reasonably estimate the amount of that loss an accrued liability is established. The actual costs of resolving these proceedings may be substantially higher or lower than the amounts accrued.

When a loss contingency is not both probable and estimable, the Company does not establish an accrued liability. As a litigation or regulatory matter develops, the Company, in conjunction with any outside counsel handling the matter, evaluates on an ongoing basis whether such matter presents a loss contingency that is probable and estimable. If, at the time of evaluation, the loss contingency is not both probable and estimable, the matter will continue to be monitored for further developments that would make such loss contingency both probable and estimable. Once the matter is deemed to be both probable and estimable, the Company will establish an accrued liability and record a corresponding amount to litigation related expense. The Company will continue to monitor the matter for further developments that could affect the amount of the accrued liability that has been previously established. Litigation related expense, which includes the fees paid to external legal service providers, of $3.5 million and $1.6 million for the three months ended March 31, 2013 and March 31, 2012 respectively, were included in general and administrative expense on the consolidated statements of income and comprehensive income.

For a number of matters for which a loss is probable or reasonably possible in future periods, whether in excess of a related accrued liability or where there is no accrued liability, the Company may be able to estimate a range of possible loss. In determining whether it is possible to provide an estimate of loss or range of possible loss, the Company reviews and evaluates its material litigation and regulatory matters on an ongoing basis, in conjunction with any outside counsel handling the matter. For those matters for which an estimate is possible, management currently believes the aggregate range of reasonably possible loss is $1.0 million to $4.8 million in excess of the accrued liability (if any) related to those matters. This estimated range of possible loss is based upon currently available information and is subject to significant judgment, numerous assumptions and known and unknown uncertainties. The matters underlying the estimated range will change from time to time, and actual results may vary substantially from the current estimate. Those matters for which an estimate is not possible are not included within the estimated range. Therefore, this estimated range of possible loss represents what management believes to be an estimate of possible loss only for certain matters meeting these criteria. It does not represent the Company's maximum loss exposure.

Based on current knowledge, and after consultation with counsel, management believes that the current legal accrued liability is appropriate, and the amount of any incremental liability arising from these matters is not expected to have a material adverse effect on the consolidated financial condition of the Company, although the outcome of such proceedings could be material to the Company’s operating results and cash flows for a particular period depending, on among other things, the level of the

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Company’s revenues or income for such period. However, in the event of significant developments on existing cases, it is possible that the ultimate resolution, if unfavorable, may be material to the Company’s consolidated financial statements.

Loan and Other Commitments

Nationstar enters into IRLCs with prospective borrowers whereby the Company commits to lend a certain loan amount under specific terms and interest rates to the borrower. Nationstar also enters into LPCs with prospective sellers. These loan commitments are treated as derivatives and are carried at fair value (See Note 10 - Derivative Financial Instruments).

Nationstar has certain MSRs related to approximately $28.2 billion of unpaid principal balance in reverse mortgage loans. As servicer for these reverse mortgage loans, among other things, the Company is obligated to make advances to the loan customers as required. At March 31, 2013, the Company’s maximum unfunded advance obligation related to these MSRs was approximately $4.6 billion. Upon funding any portion of these advances, the Company expects to securitize and sell the advances in transactions that will be accounted for as financing arrangements.

Other Contingencies

In June 2011, Nationstar entered into an agreement to subservice loans for a financial services company. Nationstar began to subservice these loans in July and August 2011. This subservicing agreement included, among other things, a loss incentive and sharing arrangement. Under this arrangement, Nationstar can earn incentive fees of up to $2.5 million for successfully mitigating losses within a specific subserviced population of loans. This incentive fee would be recognized when earned. For this same population of loans, Nationstar is subject to loss sharing under certain conditions. Should losses in this population of loans exceed a specified level, Nationstar would be required to share a portion of the losses on such loans up to a maximum of $10.0 million. Losses under this arrangement would be recognized at the point at which Nationstar determines that a liability is expected to be incurred. At March 31, 2013 and December 31, 2012, Nationstar has estimated no liability under this agreement.

During December 2009, Nationstar entered into a strategic relationship with a major mortgage market participant, which

contemplates, among other things, significant mortgage servicing rights and subservicing transfers to Nationstar upon terms to be determined. Under this arrangement, if certain delivery thresholds have been met, the market participant may require Nationstar to establish an operating division or newly created subsidiary with separate, dedicated employees within a specified timeline to service such mortgage servicing rights and subservicing. After a specified time period, this market participant may purchase the subsidiary at an agreed upon price. Since December 2010, all of the required delivery thresholds with this market participant have been met, but the market participant has not required the Company to establish an operating division or newly created subsidiary with separate, dedicated employees.

19. Business Segment Reporting

Nationstar currently conducts business in two separate operating segments: Servicing and Originations. The Servicing segment provides loan servicing on Nationstar’s total servicing portfolio, including the collection of principal and interest payments and the assessment of ancillary fees related to the servicing of mortgage loans. The Originations segment involves the origination, packaging, and sale of agency mortgage loans into the secondary markets via whole loan sales or securitizations. Nationstar reports the activity not related to either operating segment in the Legacy Portfolio and Other column. The Legacy Portfolio and Other column includes primarily all subprime mortgage loans originated in the latter portion of 2006 and during 2007 or acquired from Nationstar’s predecessor.

Nationstar’s segments are based upon Nationstar’s organizational structure which focuses primarily on the services offered. The accounting policies of each reportable segment are the same as those of Nationstar except for 1) expenses for consolidated back-office operations and general overhead-type expenses such as executive administration and accounting and 2) revenues generated on inter-segment services performed. Expenses are allocated to individual segments based on the estimated value of services performed, including total revenue contributions, personnel headcount, and the equity invested in each segment. Revenues generated or inter-segment services performed are valued based on similar services provided to external parties.

To reconcile to Nationstar’s consolidated results, certain inter-segment revenues and expenses are eliminated in the “Eliminations” column in the following tables.

The following tables are a presentation of financial information by segment for the periods indicated (in thousands):

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	Three months ended March 31, 2013
	Servicing			Originations			Operating Segments			Legacy Portfolio and Other			Eliminations			Consolidated
REVENUES:
Servicing fee income	$	206,460		$	—		$	206,460		$	555		$	(9,419	)	$	197,596
Other fee income	39,065			5,896			44,961			(82		)				44,879
Total fee income	245,525			5,896			251,421			473			(9,419		)	242,475
Gain/(loss) on mortgage loans held for sale	(98		)	179,793			179,695			(92		)	8,984			188,587
Total revenues	245,427			185,689			431,116			381			(435		)	431,062
Total expenses and impairments	147,609			111,902			259,511			9,060			—			268,571
Other income (expense):
Interest income	13,380			10,979			24,359			4,814			435			29,608
Interest expense	(71,321		)	(16,759		)	(88,080		)	(4,294		)	—			(92,374		)
Gain on interest rate swaps and caps	795			—			795			473			—			1,268
Total other income (expense)	(57,146		)	(5,780		)	(62,926		)	993			435			(61,498		)
Income (loss) before taxes	$	40,672		$	68,007		$	108,679		$	(7,686	)	$	—		$	100,993
Depreciation and amortization	$	2,306		$	816		$	3,122		$	779		$	—		$	3,901
Total assets	6,378,129			2,155,114			8,533,243			352,322			—			8,885,565

	Three months ended March 31, 2012
	Servicing			Originations			Operating Segments			Legacy Portfolio and Other			Eliminations			Consolidated
REVENUES:
Servicing fee income	$	86,040		$	—		$	86,040		$	617		$	(467	)	$	86,190
Other fee income	7,419			(19		)	7,400			(30		)	—			7,370
Total fee income	93,459			(19		)	93,440			587			(467		)	93,560
Gain on mortgage loans held for sale	—			70,500			70,500			—			12			70,512
Total revenues	93,459			70,481			163,940			587			(455		)	164,072
Total expenses and impairments	59,230			28,474			87,704			8,883			(10		)	96,577
Other income (expense):
Interest income	2,385			3,541			5,926			4,808			467			11,201
Interest expense	(16,928		)	(3,777		)	(20,705		)	(4,253		)	(22		)	(24,980		)
Loss on equity method investment	(117		)	—			(117		)	—			—			(117		)
Gain (loss) on interest rate swaps and caps	38			—			38			(306		)	—			(268		)
Total other income (expense)	(14,622		)	(236		)	(14,858		)	249			445			(14,164		)
Income (loss) before taxes	$	19,607		$	41,771		$	61,378		$	(8,047	)	$	—		$	53,331
Depreciation and amortization	$	860		$	382		$	1,242		$	289		$	—		$	1,531
Total assets	1,402,327			512,418			1,914,745			264,017			—			2,178,762

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20. Guarantor Financial Statement Information

As of March 31, 2013, Nationstar and Nationstar Capital Corporation have issued $1.7 billion aggregate principal amount of unsecured senior notes which mature on various dates through July 1, 2021. The notes are jointly and severally guaranteed on an unsecured senior basis by all of Nationstar’s existing and future domestic subsidiaries other than its securitization and certain finance subsidiaries, certain other restricted subsidiaries and subsidiaries that in the future Nationstar designates as excluded restricted and unrestricted subsidiaries. All guarantor subsidiaries are 100% owned by Nationstar. Effective June 30, 2012, Nationstar Inc. and its two direct wholly-owned subsidiaries became guarantors of the unsecured senior notes as well. Presented below are consolidating financial statements of Nationstar Inc., Nationstar, and the guarantor subsidiaries for the periods indicated.

NATIONSTAR MORTGAGE HOLDINGS INC. CONSOLIDATING BALANCE SHEET MARCH 31, 2013 (IN THOUSANDS)
Assets	Nationstar Inc.		Issuer		Guarantor (Subsidiaries)		Non-Guarantor (Subsidiaries)		Eliminations			Consolidated
Cash and cash equivalents	$	—	$	209,286	$	753	$	10,000	$	—		$	220,039
Restricted cash	—		194,768		18,769		146,930		—			360,467
Accounts receivable, net	—		3,410,255		7,666		196,906		—			3,614,827
Mortgage loans held for sale	—		1,703,709		—		—		—			1,703,709
Mortgage loans held for investment, subject to nonrecourse debt–Legacy Asset, net	—		16,717		—		219,198		—			235,915
Participating interest in reverse mortgages	—		978,652		—		—		—			978,652
Receivables from affiliates	—		—		102,364		1,670,029		(1,763,466		)	8,927
Mortgage servicing rights – fair value	—		1,289,643		—		—		—			1,289,643
Investment in subsidiaries	799,342		174,679		—		—		(974,021		)	—
Mortgage servicing rights – amortized cost	—		10,941		—		—		—			10,941
Property and equipment, net	—		76,102		1,305		—		—			77,407
REO, net	—		12,791		—		2,696		—			15,487
Other assets	31,464		337,538		7,569		—		(7,020		)	369,551
Total assets	$	830,806	$	8,415,081	$	138,426	$	2,245,759	$	(2,744,507	)	$	8,885,565
Liabilities and stockholders’ equity
Notes payable	$	—	$	1,314,873	$	—	$	2,095,013	$	—		$	3,409,886
Unsecured senior notes	—		1,669,146		—		—		—			1,669,146
Payables and accrued liabilities	—		1,525,800		7,853		3,265		(7,020		)	1,529,898
Payables to affiliates	6,554		1,756,912		—		—		(1,763,466		)	—
Derivative financial instruments	—		21,908		—		4,987		—			26,895
Mortgage Servicing Liability	—		82,931		—		—		—			82,931
Nonrecourse debt–Legacy Assets	—		—		—		98,388		—			98,388
Excess spread financing - at fair value	—		498,906		—		—		—			498,906
Participating interest financing	—		745,263		—		—		—			745,263
Total liabilities	6,554		7,615,739		7,853		2,201,653		(1,770,486		)	8,061,313
Total stockholders’ equity	824,252		799,342		130,573		44,106		(974,021		)	824,252
Total liabilities and stockholders’ equity	$	830,806	$	8,415,081	$	138,426	$	2,245,759	$	(2,744,507	)	$	8,885,565

42

NATIONSTAR MORTGAGE HOLDINGS INC. CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) FOR THE THREE MONTHS ENDED MARCH 31, 2013 (IN THOUSANDS)
	Nationstar Inc.		Issuer			Guarantor (Subsidiaries)		Non-Guarantor (Subsidiaries)			Eliminations			Consolidated
Revenues:
Servicing fee income	$	—	$	207,015		$	—	$	—		$	(9,419	)	$	197,596
Other fee income	—		6,234			38,517		128			—			44,879
Total fee income	—		213,249			38,517		128			(9,419		)	242,475
Gain on mortgage loans held for sale	—		179,603			—		—			8,984			188,587
Total Revenues	—		392,852			38,517		128			(435		)	431,062
Expenses and impairments:
Salaries, wages and benefits	—		128,588			6,399		—			—			134,987
General and administrative	—		116,403			9,239		—			—			125,642
Provision for loan losses	—		—			—		915			—			915
Loss on foreclosed real estate and other	—		296			—		796			—			1,092
Occupancy	—		5,784			151		—			—			5,935
Total expenses and impairments	—		251,071			15,789		1,711			—			268,571
Other income (expense):
Interest income	—		25,424			—		3,749			435			29,608
Interest expense	—		(69,608		)	—		(22,766		)	—			(92,374		)
Gain/(Loss) on interest rate swaps and caps	—		263			—		1,005			—			1,268
Gain/(loss) from subsidiaries	62,616		3,133			—		—			(65,749		)	—
Total other income (expense)	62,616		(40,788		)	—		(18,012		)	(65,314		)	(61,498		)
Income before taxes	62,616		100,993			22,728		(19,595		)	(65,749		)	100,993
Income tax expense/(benefit)	—		38,377			—		—			—			38,377
Net income/(loss) and comprehensive income/(loss)	$	62,616	$	62,616		$	22,728	$	(19,595	)	$	(65,749	)	$	62,616

43

NATIONSTAR MORTGAGE HOLDINGS INC. CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE THREE MONTHS ENDED MARCH 31, 2013 (IN THOUSANDS)
	Nationstar Inc.			Issuer			Guarantor (Subsidiaries)			Non-Guarantor (Subsidiaries)			Eliminations			Consolidated
Operating activities:
Net income/(loss)	$	62,616		$	62,616		$	22,728		$	(19,595	)	$	(65,749	)	$	62,616
Adjustments to reconcile net income/(loss) to net cash provided by/(used in) operating activities:
(Gain)/loss from subsidiaries	(62,616		)	(3,133		)	—			—			65,749			—
Share-based compensation	—			2,858			—			—			—			2,858
Provision for loan losses	—			—			—			915			—			915
Loss on foreclosed real estate and other	—			296			—			796			—			1,092
(Gain)/loss on ineffectiveness on interest rate swaps and cap	—			(263		)	—			(1,005		)	—			(1,268		)
Fair value changes in excess spread financing	—			23,891			—			—			—			23,891
Depreciation and amortization	—			3,850			51			—			—			3,901
Change in fair value of mortgage servicing rights	—			9,659			—			—			—			9,659
Amortization/accretion of mortgage servicing rights at amortized cost	—			(275		)	—			—			—			(275		)
Amortization (accretion) of premiums/discounts	—			9,589			—			(80		)	—			9,509
Gain on mortgage loans held for sale	—			(179,603		)	—			—			(8,984		)	(188,587		)
Mortgage loans originated and purchased, net of fees	—			(3,781,116		)	—			—			—			(3,781,116		)
Proceeds on sale of and payments of mortgage loans held for sale	—			3,682,566			—			3,309			8,984			3,694,859
Net tax effect of stock grants	(2,660		)	—			—			—			—			(2,660		)
Changes in assets and liabilities:
Accounts receivable, including servicing advances, net	—			282,727			(5,840		)	(195,793		)	—			81,094
Receivables from/(payables to) affiliates	6,584			(320,843		)	2,402			315,534			—			3,677
Reverse mortgage funded advances	—			(178,181		)	—			—			—			(178,181		)
Other assets	(2,690		)	4,631			(5,740		)	—			(5,477		)	(9,276		)
Payable and accrued liabilities	2,660			(127,198		)	6,038			8,076			5,477			(104,947		)
Net cash provided by/(used in) operating activities	3,894			(507,929		)	19,639			112,157			—			(372,239		)

44

	Nationstar Inc.			Issuer			Guarantor (Subsidiaries)			Non-Guarantor (Subsidiaries)			Eliminations		Consolidated
Investing activities:
Property and equipment additions, net of disposals	—			(5,761		)	(521		)	—			—		(6,282		)
Deposit on reverse mortgage servicing rights, net	—			(50,198		)	—			—			—		(50,198		)
Deposit on / purchase of mortgage servicing rights, net of liabilities incurred	—			(266,625		)	—			—			—		(266,625		)
Loan repurchases from Ginnie Mae	—			(8,815		)	—			—			—		(8,815		)
Proceeds from sales of REO	—			4,157			—			—			—		4,157
Net cash used in investing activities	—			(327,242		)	(521		)	—			—		(327,763		)
Financing activities:
Issuance of Senior Unsecured Notes	—			599,269			—			—			—		599,269
Transfers to/from restricted cash	—			(49,111		)	(18,766		)	100,600			—		32,723
Issuance of participating interest financing	—			166,646			—			—			—		166,646
Issuance of excess spread financing	—			192,730			—			—			—		192,730
Increase (decrease) in notes payable, net	—			8,316			—			(200,016		)	—		(191,700		)
Repayment of nonrecourse debt–Legacy assets	—			—			—			(2,612		)	—		(2,612		)
Repayment of excess servicing spread financing	—			(20,881		)	—			—			—		(20,881		)
Net tax benefit for stock grants issued	2,660			—			—			—			—		2,660
Contributions from joint venture members to noncontrolling interests	—			4,990			—			—			—		4,990
Redemption of shares for stock vesting	(6,554		)	—			—			—			—		(6,554		)
Cash settlement on derivative financial instruments	—			—			—			(129		)	—		(129		)
Debt financing costs	—			(9,750		)	—			—			—		(9,750		)
Net cash provided by/(used in) financing activities	(3,894		)	892,209			(18,766		)	(102,157		)	—		767,392
Net increase/(decrease) in cash	—			57,038			352			10,000			—		67,390
Cash and cash equivalents at beginning of period	—			152,248			401			—			—		152,649
Cash and cash equivalents at end of period	$	—		$	209,286		$	753		$	10,000		$	—	$	220,039

45

NATIONSTAR MORTGAGE HOLDINGS INC. CONSOLIDATING BALANCE SHEET DECEMBER 31, 2012 (IN THOUSANDS)
	Nationstar Inc.		Issuer (Parent)		Guarantor (Subsidiaries)		Non-Guarantor (Subsidiaries)		Eliminations			Consolidated
Assets
Cash and cash equivalents	$	—	$	152,248	$	401	$	—	$	—		$	152,649
Restricted cash	—		145,657		3		247,530		—			393,190
Accounts receivable, net	—		3,040,666		1,826		1,114		—			3,043,606
Mortgage loans held for sale	—		1,480,537		—		—		—			1,480,537
Mortgage loans held for investment, subject to nonrecourse debt–Legacy Asset, net	—		14,700		—		224,207		—			238,907
Participating interest in reverse mortgages	—		750,273		—		—		—			750,273
Receivables from affiliates	—		—		92,373		1,983,997		(2,063,766		)	12,604
Mortgage servicing rights – fair value	—		635,860		—		—		—			635,860
Investment in subsidiaries	728,908		149,188		—		—		(878,096		)	—
Mortgage servicing rights - amortized cost	—		10,973		—		—		—			10,973
Property and equipment, net	—		74,191		835		—		—			75,026
REO, net	—		8,428		—		2,039		—			10,467
Other assets	28,774		303,737		1,829		1,847		(14,136		)	322,051
Total assets	$	757,682	$	6,766,458	$	97,267	$	2,460,734	$	(2,955,998	)	$	7,126,143
Liabilities and members’ equity
Notes payable	$	—	$	1,306,557	$	—	$	2,295,029	$	—		$	3,601,586
Unsecured senior notes	—		1,062,635		—		—		—			1,062,635
Payables and accrued liabilities	—		640,369		1,815		3,383		(14,136		)	631,431
Payables to affiliates	—		2,063,766		—		—		(2,063,766		)	—
Derivative financial instruments	—		12,060		—		7,966					20,026
Mortgage Servicing Liability	—		83,238		—		—		—			83,238
Nonrecourse debt–Legacy Assets	—		—		—		100,620		—			100,620
Excess spread financing – fair value	—		288,089		—		—		—			288,089
Participating interest financing	—		580,836		—		—		—			580,836
Total liabilities	—		6,037,550		1,815		2,406,998		(2,077,902		)	6,368,461
Total members’ equity	757,682		728,908		95,452		53,736		(878,096		)	757,682
Total liabilities and members’ equity	$	757,682	$	6,766,458	$	97,267	$	2,460,734	$	(2,955,998	)	$	7,126,143

46

NATIONSTAR MORTGAGE LLC CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) FOR THE THREE MONTHS ENDED MARCH 31, 2012 (IN THOUSANDS)
	Issuer			Guarantor (Subsidiaries)			Non-Guarantor (Subsidiaries)			Eliminations			Consolidated
Revenues:
Servicing fee income	$	84,171		$	—		$	2,486		$	(467	)	$	86,190
Other fee income	—			7,255			115			—			7,370
Total fee income	84,171			7,255			2,601			(467		)	93,560
Gain on mortgage loans held for sale	70,512			—			—			—			70,512
Total Revenues	154,683			7,255			2,601			(467		)	164,072
Expenses and impairments:
Salaries, wages and benefits	59,583			2,082			—			—			61,665
General and administrative	26,026			566			2,520			—			29,112
Provision for loan losses	461			—			292			—			753
Loss on foreclosed real estate	—			—			2,265			—			2,265
Occupancy	2,782			—			—			—			2,782
Total expenses and impairments	88,852			2,648			5,077			—			96,577
Other income / (expense):
Interest income	5,887			—			4,847			467			11,201
Interest expense	(18,195		)	—			(6,785		)	—			(24,980		)
Loss on equity method investments	—			(117		)	—			—			(117		)
Gain/(loss) on interest rate swaps and caps	(306		)	—			38			—			(268		)
Gain / (loss) from subsidiaries	114			—			—			(114		)	—
Total other income / (expense)	(12,500		)	(117		)	(1,900		)	353			(14,164		)
Income before taxes	53,331			4,490			(4,376		)	(114		)	53,331
Income tax expense/(benefit)	21,273			—			—			—			21,273
Net Income	$	32,058		$	4,490		$	(4,376	)	$	(114	)	$	32,058

47

NATIONSTAR MORTGAGE LLC CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE THREE MONTHS ENDED MARCH 31, 2012 (IN THOUSANDS)
	Issuer (Parent)			Guarantor (Subsidiaries)			Non-Guarantor (Subsidiaries)			Eliminations			Consolidated
Operating activities:
Net income/(loss)	$	32,058		$	4,490		$	(4,376	)	$	(114	)	$	32,058
Adjustments to reconcile net income/(loss) to net cash provided by/(used in) operating activities:
(Gain)/loss from subsidiaries	(114		)	—			—			114			—
Share-based compensation	2,395			—			—			—			2,395
(Gain)/loss on sale of mortgage loans	(70,512		)	—			—			—			(70,512		)
Provision for loan losses	461			—			292			—			753
Loss on foreclosed real estate and other	—			—			2,265			—			2,265
Loss on equity method investments	117			—			—			—			117
(Gain)/loss on ineffectiveness on interest rate swaps and cap	306			—			(38		)	—			268
Fair value changes in excess spread financing	4,852			—			—			—			4,852
Depreciation and amortization	1,531			—			—			—			1,531
Change in fair value of mortgage servicing rights	(495		)	—			—			—			(495		)
Accretion of mortgage servicing liability	(633		)	—			—			—			(633		)
Amortization (accretion) of premiums/discounts	2,685			—			(763		)	—			1,922
Mortgage loans originated and purchased, net of fees	(1,189,942		)	—			—			—			(1,189,942		)
Cost of loans sold and principal payments and prepayments, and other changes in mortgage loans originated as held for sale, net of fees	1,297,338			—			5,758			—			1,303,096
Changes in assets and liabilities:
Accounts receivable	(238,752		)	(10		)	279,447			—			40,685
Receivables from/(payables to) affiliates	302,346			(4,447		)	(297,093		)	—			806
Reverse funded advances due to securitization	(112,738		)	—			—			—			(112,738		)
Other assets	(5,620		)	—			—			—			(5,620		)
Accounts payable and accrued liaibilities	98,546			—			28,779			—			127,325
Net cash provided by/(used in) operating activities	123,829			33			14,271			—			138,133

48

	Issuer (Parent)			Guarantor (Subsidiaries)		Non-Guarantor (Subsidiaries)			Eliminations		Consolidated
Investing activities:
Property and equipment additions, net of disposals	(2,564		)	—		—			—		(2,564		)
Deposit on / purchase of mortgage servicing rights, net of liabilities incurred	(347		)	—		—			—		(347		)
Repurchases of REO from Ginnie Mae	(2,426		)	—		—			—		(2,426		)
Proceeds from sales of REO	4,816			—		(1,861		)	—		2,955
Net cash provided by/(used in) investing activities	(521		)	—		(1,861		)	—		(2,382		)
Financing activities:
Transfers to/from restricted cash	(82,358		)	—		(8,593		)	—		(90,951		)
Issuance of participating interest financing	115,438			—		—			—		115,438
Increase (decrease) in notes payable, net	(104,743		)	—		(682		)	—		(105,425		)
Repayment of nonrecourse debt–Legacy assets	—			—		(3,135		)	—		(3,135		)
Repayment of excess servicing spread financing	(2,123		)	—		—			—		(2,123		)
Contribution of parent	246,700			—		—			—		246,700
Debt financing costs	(2,706		)	—		—			—		(2,706		)
Net cash provided by/(used in) financing activities	170,208			—		(12,410		)	—		157,798
Net increase/(decrease) in cash	293,516			33		—			—		293,549
Cash and cash equivalents at beginning of period	62,201			244		—			—		62,445
Cash and cash equivalents at end of period	$	355,717		$	277	$	—		$	—	$	355,994

21. Disclosures Related to Transactions with Affiliates of Fortress Investment Group LLC

Nationstar maintains a marketing agreement with Springleaf Home Equity, Inc., Springleaf General Financial Services of Arkansas, Inc. and MorEquity, Inc. (collectively “Springleaf”), each of which are indirectly owned by investment funds managed by affiliates of Fortress Investment Group LLC. Pursuant to this agreement, Nationstar markets mortgage originations products to customers of Springleaf, and is compensated by the originations fees of loans that Nationstar refinances.

Additionally, Nationstar has eight agreements to act as the loan subservicer for Springleaf, including one for a whole loan "unencumbered" portfolio and seven for securitized loan portfolios, totaling $3.3 billion for which Nationstar receives a monthly per loan subservicing fee and other performance incentive fees subject to the agreements with Springleaf. For the three months ended March 31, 2013 and 2012, Nationstar recognized revenue of $2.1 million and $2.6 million, respectively, in additional servicing and other performance incentive fees related to these portfolios. At March 31, 2013 and December 31, 2012, Nationstar had an outstanding receivable from Springleaf of $0.8 million and $0.7 million, respectively, which was included as a component of accounts receivable.

Nationstar is the loan servicer for two securitized loan portfolios managed by Newcastle, which is managed by an affiliate of Fortress Investment Group LLC, for which Nationstar receives a monthly net servicing fee equal to 0.50% per annum on the unpaid principal balance of the portfolios, which was $1.0 billion and $1.1 billion, as of March 31, 2013 and 2012, respectively. For the three months ended March 31,2013 and 2012, Nationstar received servicing fees and other performance incentive fees of $1.2 million and $1.4 million, respectively.

Additionally, Nationstar has entered into several agreements with certain entities formed by Newcastle, in which Newcastle and/or certain funds managed by Fortress own an interest (each a "Newcastle Entity"), where Nationstar sold to the related Newcastle Entity the right to receive a portion of the excess cash flow generated from certain acquired MSRs after receipt of a fixed basic servicing fee per loan. Nationstar retains all ancillary income associated with servicing such MSRs and the remaining portion of the excess cash flow after receipt of the fixed basic servicing fee. Nationstar is the servicer of the loans and provides all servicing and advancing functions for the portfolio. The related Newcastle Entity does not have prior or

49

ongoing obligations associated with these MSR portfolios. Furthermore, should Nationstar refinance any loan in such portfolios, subject to certain limitations, Nationstar will be required to transfer the new loan or a replacement loan of similar economic characteristics into the portfolios. The new or replacement loan will be governed by the same terms set forth in the agreements described above.

The fair value on the outstanding liability related to these agreements was $498.9 million and $288.1 million at March 31, 2013 and December 31, 2012, respectively.

In February 2013, Nationstar acquired certain fixed and adjustable rate reverse mortgage loans with an unpaid principal balance totaling $83.1 billion for a purchase price of $50.2 million. In conjunction with this acquisition, Nationstar entered into an agreement with NIC Reverse Loan LLC, a subsidiary of Newcastle, to sell a participating interest of the acquired reverse mortgage loans. Both Nationstar and NIC Reverse Loan LLC are entitled to the related percentage interest of all amounts received with respect to the reverse mortgage loans, net of payments of servicing fees and the reimbursement to Nationstar of servicing advances. Nationstar receives a fixed payment per loan for servicing these reverse mortgage loans. Nationstar records these reverse mortgage loans as reverse mortgage interests on the Company's consolidated balance sheet.

22. Related Party Disclosure

In March 2011, Nationstar entered into a limited partnership agreement with ANC Acquisition LLC (ANC). ANC was the parent company of National Real Estate Information Services, LP (NREIS), which through the ANC partnership Nationstar held a non-controlling interest in NREIS, an ancillary real estate services and vendor management company that directly and indirectly provided title agency settlement or valuation services for loan originations and default management. As Nationstar was able to exercise significant influence, but not control, over the policies and procedures of the entity, and Nationstar owned less than 50% of the voting interests, Nationstar applied the equity method of accounting. In March 2012 as part of the initial public offering restructuring, Nationstar assumed FIF’s 13% ownership in NREIS, increasing the total Nationstar investment to 35%. Nationstar disbursed servicing-related advances of $0.01 million and $4.72 million for the three months ended March 31, 2013 and 2012, respectively.

Through the third quarter of 2012, Nationstar had recognized its portion of NREIS' loss on equity method investment of $1.3 million. During the fourth quarter of 2012, the management of NREIS made the decision to wind down its operations due to continuing poor financial results. Because of the decision to wind down operations and the financial condition of NREIS, Nationstar recorded additional losses amounting to $9.0 million. In addition to its initial investment, Nationstar, during May 2012, advanced NREIS $2.0 million for future services. Nationstar determined that these deposits would not be recovered and fully impaired this additional deposit. In order to effect an orderly wind down of the operation, Nationstar, together with the majority owners of ANC, agreed to fund a portion of the expected wind down costs. As such, Nationstar recorded $2.3 million of losses in excess of its investment at December 31, 2012. There were no losses incurred for the three months ended March 31, 2013.

23. Subsequent Events

In April 2013, Nationstar entered into an agreement with Freddie Mac to purchase certain mortgage servicing rights and related servicing receivables. Under the terms of this agreement, Nationstar agreed to purchase the rights to service residential mortgage loans with a total UPB of approximately $22 billion and approximately $239 million of related servicing advance receivables. All of the related mortgage loans are owned, insured, or guaranteed by Freddie Mac. The aggregate purchase price is approximately $372 million, which is expected to be funded through cash on hand and the proceeds of a co-investment by Newcastle Investment Corp., and certain funds managed by Fortress which is expected to close in the second quarter of 2013. Nationstar expects to board a portion of these loans onto the servicing system during the second quarter of 2013; with the remaining portion to be subserviced.

In May 2013, Nationstar entered into an agreement to purchase the loan origination operations and related assets of Greenlight Financial Services (Greenlight), a residential mortgage originator. This acquisition is intended to provide channel expansion, increased origination opportunities, and an added source of servicing asset creation for Nationstar. Closing of the transaction is subject to certain customary closing conditions and the transaction is expected to close during the second quarter of 2013. The assets to be acquired will consist of property and equipment, intellectual property (including the Greenlight trademark), and certain other assets. Certain post-closing liabilities related to these assets will also be assumed as part of the transaction. The purchase price for these assets is up to $75 million, subject to certain contingencies. Due to the timing of this transaction, the data necessary to provide the supplemental pro forma information required by ASC 805-10-50-2 is not yet available as of the issuance date of these financial statements and accompanying notes. Nationstar expects to file the required supplemental pro forma information on Form 8-K with the SEC subsequent to the consummation of this transaction.

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Item 2.Management’s Discussion and Analysis of Financial Condition and Results of Operations

In conjunction with the completion of Nationstar Mortgage Holdings Inc.'s initial public offering in March 2012, Nationstar Mortgage LLC became a wholly-owned indirect subsidiary of Nationstar Mortgage Holdings Inc. Nationstar Mortgage Holdings Inc. was formed as a Delaware corporation for the purpose of reorganizing the structure of FIF HE Holdings LLC (FIF) and Nationstar Mortgage LLC so that the common stock issuer was a corporation rather than a limited liability company. Investors in FIF exchanged their membership units for shares in Nationstar Mortgage Holdings Inc. Because Nationstar Mortgage Holdings Inc. had no operations prior to the reorganization and initial public offering, Nationstar Mortgage LLC is the predecessor company. The following discussion and analysis relates to the operations of Nationstar Mortgage Holdings Inc. and its consolidated subsidiaries. The terms “we,” “us,” or “our” refer to the business of Nationstar Mortgage Holdings Inc. and subsidiaries (Nationstar Inc. or the Company) or its predecessor Nationstar Mortgage LLC (Nationstar) as appropriate.

General

Our Business

We are a real estate services company engaged primarily in the servicing of residential loans for others and the origination and selling or securitization of single-family conforming mortgage loans to GSEs or other third-party investors in the secondary market. Nationstar, our principal operating subsidiary, is a leading high touch non-bank residential mortgage servicer with a broad array of servicing capabilities across the residential mortgage product spectrum. We have been the fastest growing mortgage servicer since 2007 as measured by annual percentage growth in UPB, having grown 84.1% annually on a compounded basis. As of March 31, 2013, we serviced over 1.9 million residential mortgage loans with an aggregate UPB of $312.5 billion, making us one of the largest non-bank servicers in the United States as of March 31, 2013.

We service loans as the owner of the forward MSRs, which we refer to as “primary servicing,” and we service loans on behalf of other MSR or mortgage owners, which we refer to as “subservicing.” We acquire MSRs on a standalone basis and have also developed an innovative model for investing on a capital light basis by co-investing with financial partners in “excess MSRs.” Subservicing represents another capital light means of growing our servicing business, as subservicing contracts are typically awarded on a no-cost basis and do not require substantial capital. As of March 31, 2013, our primary servicing and subservicing, represented 77.3% and 13.7%, respectively of our total servicing portfolio, with 9.0% of our outstanding servicing portfolio consisting of reverse residential mortgage loans. In addition, we operate or have investments in several adjacent real estate services businesses designed to meet the changing needs of the mortgage industry. These businesses offer an array of ancillary services, including providing services for delinquent loans, managing loans in the foreclosure/REO process and providing title insurance agency, loan settlement and valuation services on newly originated and re-originated loans.

In January 2013, we entered into a mortgage servicing rights purchase and sale agreement (the Purchase Agreement) with a financial institution. Under the Purchase Agreement, we agreed to purchase the rights to service approximately 1.3 million residential mortgage loans with a total UPB of approximately $215 billion, and approximately $5.8 billion of related servicing advance receivables. Approximately 47% of these loans (by UPB) are owned, insured or guaranteed by Fannie Mae, Freddie Mac or Ginnie Mae, and the remaining 53% of these loans are non-conforming loans in private label securitizations.

The aggregate purchase price is approximately $7.1 billion, which we expect to fund through a combination of cash on hand, the proceeds of a co-investment by Newcastle Investment Corp., and certain funds managed by Fortress, the proceeds of advance financing facilities, and/or other issuances of debt. On January 31, 2013, we closed on the MSRs and associated servicing advance receivables with respect to those loans owned, insured or guaranteed by Fannie Mae and Freddie Mac. On February 1, 2013, we closed on the MSRs and associated servicing advance receivables with respect to those loans owned, insured or guaranteed by Ginnie Mae. Subject to customary closing conditions, we expect to close on the majority of the remaining MSRs in stages during the second quarter of 2013. During February 2013, we boarded approximately $15.3 billion of the acquired agency portfolio balance with the remaining Freddie Mac, Fannie Mae, and Ginnie Mae portfolio to be completed by June 2013. The remaining private label securitization portfolios are scheduled to board onto our servicing system through September 2013.

We operate a fully integrated loan originations platform to complement and enhance our servicing business. We originate primarily conventional agency (GSE) and government-insured residential mortgage loans and, to mitigate risk, typically sell these loans within 30 days while retaining the associated servicing rights. Our originations efforts are primarily focused on “re-origination,” which involves actively working with existing borrowers to refinance their mortgage loans. By re-originating loans for existing borrowers, we retain the servicing rights, thereby extending the longevity of the servicing cash flows, which we refer to as “recapture.”

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We also have a legacy asset portfolio, which consists primarily of non-prime and nonconforming residential mortgage loans, most of which we originated from April to July 2007. In November 2009, we engaged in a transaction through which we term-financed our legacy assets with a nonrecourse loan.

The analysis of our financial condition and results of operations as discussed herein is primarily focused on the combined results of our two Operating Segments: the Servicing Segment and the Originations Segment.

Our internet address is www.nationstarholdings.com. Through this internet website (under the “Investor Relations / Financial Information” link), we make available, free of charge, our reports that are electronically filed with or furnished to the Securities and Exchange Commission (SEC). Information contained on or available through this website is not incorporated by reference herein.

Critical Accounting Policies

Various elements of our accounting policies, by their nature, are inherently subject to estimation techniques, valuation assumptions and other subjective assessments. In particular, we have identified four policies that, due to the judgment, estimates and assumptions inherent in those policies, are critical to an understanding of our consolidated financial statements. These policies relate to: (a) fair value measurements, (b) sale of mortgage loans, (c) accounting for mortgage loans held for investment, subject to nonrecourse debt and (d) valuation of deferred tax assets. We believe that the judgment, estimates and assumptions used in the preparation of our consolidated financial statements are appropriate given the factual circumstances at the time. However, given the sensitivity of our consolidated financial statements to these critical accounting policies, the use of other judgments, estimates and assumptions could result in material differences in our results of operations or financial condition.

For further information on our critical accounting policies, please refer to our Annual Report on Form 10-K for the year ended December 31, 2012. There have been no material changes to our critical accounting policies since December 31, 2012.

Selected Financial Data

Selected consolidated balance sheet, statement of operations and other selected data are as follows (dollars in thousands).

	March 31, 2013		December 31, 2012
Consolidated Balance Sheets Data:
Cash and cash equivalents	$	220,039	$	152,649
Accounts receivable	3,614,827		3,043,606
Mortgage loans held for sale	1,703,709		1,480,537
Mortgage servicing rights (at fair value)	1,289,643		635,860
Total assets	8,885,565		7,126,143
Notes payable	3,409,886		3,601,586
Unsecured senior notes	1,669,146		1,062,635
Nonrecourse debt-legacy assets	98,388		100,620
Excess spread financing (at fair value)	498,906		288,089
Participating interest financing	745,263		580,836
Total liabilities	8,061,313		6,368,461
Total Nationstar equity	819,262		757,682

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Consolidated Statements of Operations and Comprehensive Income Data:	For the three months ended March 31,
	2013			2012
Total revenues	$	431,062		$	164,072
Total expenses and impairments	268,571			96,577
Total other expense	(61,498		)	(14,164		)
Income before taxes	100,993			53,331
Total income tax expense	38,377			3,145
Net income and comprehensive income	$	62,616		$	50,186
Other Financial Data:
Net cash provided by / (used in):
Operating activities	$	(372,239	)	$	135,283
Investing activities	(327,763		)	(2,382		)
Financing activities	767,392			160,648
Adjusted EBITDA(1) (non-GAAP measure)	178,235			77,243
Operating Segments:
Interest expense from unsecured senior notes	30,690			8,542
Change in fair value of mortgage servicing rights	9,659			(495		)
Depreciation and amortization	3,528			1,242
Share-based compensation	2,858			2,395

⁽¹⁾  Adjusted EBITDA is a key performance measure used by management in evaluating the performance of our segments. Adjusted EBITDA represents our Operating Segments' income, and excludes income and expenses that relate to the financing of the unsecured senior notes, depreciable (or amortizable) asset base of the business, income taxes, exit costs from our 2007 restructuring and certain non-cash items. Adjusted EBITDA also excludes results from our legacy asset portfolio.

Adjusted EBITDA

Adjusted EBITDA provides us with a key measure of our Operating Segments' performance as it assists us in comparing our Operating Segments' performance on a consistent basis. Management believes Adjusted EBITDA is useful in assessing the profitability of our core business and uses Adjusted EBITDA in evaluating our operating performance as follows:

• Financing arrangements for our Operating Segments are secured by assets that are allocated to these segments. Interest expense that relates to the financing of our unsecured senior notes is not considered in evaluating our operating performance because this obligation is serviced by the excess earnings from our Operating Segments after the debt obligations that are secured by their assets.

• To monitor operating costs of each Operating Segment excluding the impact from depreciation, amortization and fair value change of the asset base, exit costs from our restructuring and non-cash operating expense, such as share-based compensation. Operating costs are analyzed to manage costs per our operating plan and to assess staffing levels, implementation of technology based solutions, rent and other general and administrative costs.

Management does not assess the growth prospects and the profitability of our legacy asset portfolio, except to the extent necessary to assess whether cash flows from the assets in the legacy asset portfolio are sufficient to service its debt obligations.

We also use Adjusted EBITDA (with additional adjustments) to measure our compliance with covenants such as leverage coverage ratios for our unsecured senior notes.

Adjusted EBITDA has limitations as an analytical tool and should not be considered in isolation, or as a substitute for analysis of our results as reported under GAAP. Some of these limitations are:

• Adjusted EBITDA does not reflect our cash expenditures or future requirements for capital expenditures or contractual commitments;

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• Adjusted EBITDA does not reflect changes in, or cash requirements for, our working capital needs;

• Adjusted EBITDA does not reflect the cash requirements necessary to service principal payments related to the financing of the business;

• Adjusted EBITDA does not reflect the interest expense or the cash requirements necessary to service interest or principal payments on our corporate debt;

• although depreciation and amortization and changes in fair value of MSRs are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future and Adjusted EBITDA does not reflect any cash requirements for such replacements; and

• other companies in our industry may calculate Adjusted EBITDA differently than we do, limiting its usefulness as a comparative measure.

Because of these and other limitations, Adjusted EBITDA should not be considered as a measure of discretionary cash available to us to invest in the growth of our business. Adjusted EBITDA is presented to provide additional information about our operations. Adjusted EBITDA is a non-GAAP measure and should be considered in addition to, but not as a substitute for or superior to, operating income, net income, operating cash flow and other measures of financial performance prepared in accordance with GAAP. We compensate for these limitations by relying primarily on our GAAP results and using Adjusted EBITDA only supplementally.

	For the three months ended March 31,
Net Income/(Loss) from Operating Segments to Adjusted EBITDA Reconciliation (dollars in thousands):	2013			2012
Net income (loss)	$	62,616		$	50,186
Plus:
Net loss from Legacy Portfolio and Other	7,686			8,047
Income tax expense	38,377			3,145
Income from Operating Segments	108,679			61,378
Adjust for:
Interest expense from unsecured senior notes	30,690			8,542
Depreciation and amortization	3,528			1,242
Change in fair value of mortgage servicing rights	9,659			(495		)
Amortization of mortgage servicing rights/obligations - at amortized cost	(275		)	(633		)
Share-based compensation	2,858			2,395
Fair value changes on excess spread financing	23,891			4,852
Fair value changes in derivatives	(795		)	(38		)
Adjusted EBITDA	$	178,235		$	77,243

Results of Operations

Below is a summarization of our consolidated operating results for the periods indicated. We provide further discussion of our results of operations for each of our reportable segments under “Segment Results” below. Certain income and expenses not allocated to our reportable segments are presented under “Legacy Portfolio and Other” below and discussed in “Note 19—Business Segment Reporting”, in the accompanying Notes to Consolidated Financial Statements.

Comparison of Consolidated Results for the Three Months Ended March 31, 2013 and 2012

Revenues increased $267.0 million to $431.1 million for the three months ended March 31, 2013 from $164.1 million for the three months ended March 31, 2012, due to increases in both our total fee income and our gain on mortgage loans held for sale. The increase in our total fee income was primarily the result of our higher average forward servicing portfolio balance, which increased to $180.4 billion for the three months ended March 31, 2013, compared to $97.1 billion for the three months ended March 31, 2012 and an increase in higher modification fees earned from HAMP and non-HAMP modifications combined with fees earned from our reverse mortgage portfolio. The increase in the gain on loans held for sale was a result of the $2.2 billion, or 183.3%, increase in the amount of loans originated during the 2013 period compared to the 2012 period, higher margins

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earned on the sale of residential mortgage loans during the period and an increase in the value of servicing capitalized due to the larger volume of loan sales and subsequent rentention of MSRs.

Expenses and impairments increased $172.0 million to $268.6 million for the three months ended March 31, 2013 from $96.6 million for the three months ended March 31, 2012, primarily due to the increase in compensation expenses related to increased staffing levels in order to accommodate our larger servicing portfolio and originations volumes as well as other related increases in general and administrative expenses.

Other expense increased $47.3 million to $61.5 million for the three months ended March 31, 2013 from $14.2 million for the three months ended March 31, 2012, primarily due to a decrease in our net interest margin resulting from higher average outstanding balances on our outstanding warehouse and advance facilities combined with a higher average outstanding balance on our senior unsecured notes.

For the three months ended March 31, 2013, we incurred tax expense of $38.4 million, an increase of $35.3 million over the comparable 2012 period. During March 2012, we became a taxable entity in conjunction with our initial public offering. We were a taxable entity for the entire 2013 period.

Segment Results

Our primary business strategy is to generate recurring, stable income from managing and growing our servicing portfolio. We operate through two business segments: the Servicing Segment and the Originations Segment, which we refer to collectively as our Operating Segments. We report the activity not related to either operating segment in Legacy Portfolio and Other. Legacy Portfolio and Other includes primarily all subprime mortgage loans originated mostly from April to July 2007 or acquired.

The accounting policies of each reportable segment are the same as those of the consolidated financial statements except for (i) expenses for consolidated back-office operations and general overhead expenses such as executive administration and accounting, (ii) revenues generated on inter-segment services performed, and (iii) interest expense on unsecured senior notes. Expenses are allocated to individual segments based on the estimated value of services performed, including total revenue contributions, personnel headcount, and the equity invested in each segment. Revenues generated or inter-segment services performed are valued based on similar services provided to external parties.

Servicing Segment

The Servicing Segment provides loan servicing on our primary and subservicing portfolios, including the collection of principal and interest payments and the generation of ancillary fees related to the servicing of mortgage loans. We also service approximately $28.2 billion in reverse residential mortgage loans which we acquired in 2012. Servicing reverse mortgage loans involves monitoring the condition of the property, advancing for delinquent taxes and insurance, advancing for line of credit draws, and dealing with foreclosure and recovery in the event of default.

Increase in aggregate UPB of our servicing portfolio primarily governs the increase in revenues, expenses and other income (expense) of our Servicing Segment.

The table below provides detail of the UPB of our servicing portfolio at the periods indicated.

	March 31, 2013		March 31, 2012
Servicing Portfolio (in millions)
Unpaid principal balance (by investor):
Special servicing	$	10,757	$	9,295
Government-sponsored enterprises	125,221		68,001
Non-Agency securitizations	50,892		18,137
Total boarded forward servicing portfolio	186,870		95,433
Acquired Servicing Rights owned - serviced by others	4,782		—
Acquired Servicing Rights owned - serviced by predecessor	92,590		—
Total forward servicing portfolio	284,242		95,433
Reverse mortgage servicing	28,242		7,853
Total servicing portfolio unpaid principal balance	$	312,484	$	103,286

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The table below provides detail of the characteristics and key performance metrics of our forward servicing portfolio for the periods indicated.

Three months ended March 31,	2013 (1)			2012
($ in millions, except for average loan amount)
Loan count-servicing	1,065,400			585,784
Ending unpaid principal balance	$	186,870		$	95,433
Average unpaid principal balance	$	180,403		$	97,119
Average loan amount	$	175,399		$	162,915
Average coupon	5.28		%	5.35		%
Average FICO	673			656
60+ delinquent (% of loans) (2)	12.7		%	11.9		%
Total prepayment speed (12 month constant pre-payment rate)	16.7		%	13.9		%

⁽¹⁾  2013 characteristics and key performance metrics of our servicing portfolio exclude approximately $92.6 billion and approximately 644,610 units of forward residential mortgage loans acquired. These loans will be boarded later in 2013 and have been excluded from our key performance metrics above. Additionally, these characteristics and key performance metrics exclude forward residential mortgage servicing rights serviced by others.

⁽²⁾  Loan delinquency is based on the current contractual due date of the loan. In the case of a completed loan modification, delinquency is based on the modified due date of the loan.

The table below provides detail of the characteristics and key performance metrics of our reverse servicing portfolio for the three months ended March 31, 2013.

Three months ended March 31,	2013
($ in millions, except for average loan amount)
Loan count	167,460
Ending unpaid principal balance	$	28,242
Average loan amount	$	168,650
Average coupon	3.03		%
Average borrower age	76

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Servicing Fee Income

Servicing fee income consists of the following for the periods indicated (in thousands).

	For the three months ended March 31,
	2013			2012
Servicing fee income	$	172,081		$	60,707
Loss mitigation and performance-based incentive fees	5,806			7,908
Modification fees	24,717			7,315
Late fees and other ancillary charges	11,593			7,637
Master service fee	3,062			—
Reverse mortgage fees	18,418			6,218
Other servicing fee related revenues	4,058			(21		)
Total servicing fee income before MSR fair value adjustments	239,735			89,764
Fair value adjustments on excess spread financing	(23,891		)	(4,852		)
Reverse mortgage servicing amortization/accretion	275			633
MSR fair value adjustments	(9,659		)	495
Total servicing fee income	$	206,460		$	86,040

The following tables provide servicing fee income and UPB by primary servicing, subservicing, adjacent businesses and reverse servicing for and at the periods indicated (in thousands).

	For the three months ended March 31,
	2013		2012
Primary servicing	$	191,989	$	49,641
Subservicing	26,341		31,917
Adjacent businesses	2,987		1,988
Reverse servicing	$	18,418	6,218
Total servicing fee income before MSR fair value adjustments	$	239,735	$	89,764

	March 31, 2013		March 31, 2012
UPB (in millions)
Primary servicing	$	241,543	$	45,320
Subservicing	42,699		50,113
Reverse servicing	28,242		7,853
Total unpaid principal balance	$	312,484	$	103,286

Servicing Segment for the Three Months Ended March 31, 2013 and 2012

Service Fee Income

Servicing fee income was $206.5 million for the three months ended March 31, 2013 compared to $86.0 million for the three months ended March 31, 2012, an increase of $120.5 million, or 140.1%, primarily due to the net effect of the following:

.

• Increase of $111.4 million due to higher average UPB on our forward servicing portfolio, which increased to $180.4 billion in the 2013 period compared to $97.1 billion in the comparable 2012 period. The increase in our servicing portfolio was primarily driven by an increase in average UPB for loans serviced for GSEs and other subservicing

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contracts for third-party investors to $117.5 billion in the 2013 period compared to $68.9 billion in the comparable 2012 period. In addition, we also experienced an increase in average UPB for our private asset-backed securitizations portfolio, which increased to $52.1 billion in the three months ended March 31, 2013 compared to $18.5 billion in the comparable 2012 period.

• Decrease of $2.1 million due to decreased loss mitigation and performance-based incentive fees earned from a GSE.

• Increase of $17.4 million due to higher modification fees earned from HAMP and non-HAMP modifications.

• Increase of $4.0 million from increased collections from late fees and other ancillary charges.

• Increase of $12.2 million from fees earned from our reverse mortgage portfolio.

• Decrease of $10.2 million from change in fair value on MSRs which was recognized in servicing fee income. The fair value of our MSRs is based upon the present value of the expected future cash flows related to servicing these loans. The revenue components of the cash flows are servicing fees, interest earned on custodial accounts, and other ancillary income. The expense components include operating costs related to servicing the loans (including delinquency and foreclosure costs) and interest expenses on servicing advances. The expected future cash flows are primarily impacted by prepayment estimates, delinquencies, and market discount rates. Generally, the value of MSRs increases when interest rates increase and decreases when interest rates decline due to the effect those changes in interest rates have on prepayment estimates. Other factors affecting the MSR value includes the estimated effects of loan modifications on expected cash flows. Such modifications tend to positively impact cash flows by extending the expected life of the affected MSR and potentially producing additional revenue opportunities depending on the type of modification. In valuing the MSRs, we believe our assumptions are consistent with the assumptions other major market participants use. These assumptions include a level of future modification activity that we believe major market participants would use in their valuation of MSRs. Internally, we have modification goals that exceed the assumptions utilized in our valuation model. Nevertheless, were we to apply an assumption of a level of future modifications consistent with our internal goals to our MSR valuation, we do not believe the resulting increase in value would be material. Additionally, several state attorneys general have previously requested that certain mortgage servicers, including us, suspend foreclosure proceedings pending internal review to ensure compliance with applicable law, and we received requests from four such state attorneys general. Although we have resumed those previously delayed proceedings, changes in the foreclosure process that may be required by government or regulatory bodies could increase the cost of servicing and diminish the value of our MSRs. We utilize assumptions of servicing costs that include delinquency and foreclosure costs that we believe major market participants would use to value their MSRs. We periodically compare our internal MSR valuation to third-party valuation of our MSRs to help substantiate our market assumptions. We have considered the costs related to the delayed proceedings in our assumptions and we do not believe that any resulting decrease in the MSR was material given the expected short-term nature of the issue.

• Decrease of $19.0 million from change in fair value of our excess spread financing arrangements. In conjunction with various MSR acquisitions, we have entered into sale and assignment agreements, which we treated as financings, whereby we sold the right to receive a portion of the excess cash flow generated from certain underlying MSR portfolios after receipt of a fixed basic servicing fee per loan. We measure these financing arrangements at fair value.

Other Fee Income

Other fee income was $39.1 million for the three months ended March 31, 2013 compared to $7.4 million for the three months ended March 31, 2012, an increase of $31.7 million, or 428.4%, due to higher commissions earned on lender placed insurance and higher REO sales commissions.

The following table provides other fee income by primary servicing, subservicing and adjacent businesses for the periods indicated (in thousands).

	For the three months ended  March 31,
	2013		2012
Primary servicing	$	7,460	$	2,477
Subservicing	—		2,269
Adjacent businesses	31,606		2,673
Total other fee income	$	39,066	$	7,419

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Expenses and Impairments

Expenses and impairments were $147.6 million for the three months ended March 31, 2013 compared to $59.2 million the three months ended March 31, 2012, an increase of $88.4 million, or 149.3%, primarily due to the increase of $32.4 million in salaries, wages and benefits expense resulting primarily from an increase in average headcount from 1,775 in the 2012 period to 3,331 in the 2013 period and an increase of $56.1 million in general and administrative and occupancy-related expenses associated with increased headcount and growth in the servicing portfolio.

The following table provides primary servicing, subservicing, reverse servicing, adjacent businesses and other Servicing Segment expenses for the periods indicated (in thousands). Other Servicing Segment expenses primarily includes share-based compensation expenses.

	For the three months ended March 31,
	2013		2012
Primary servicing	$	95,026	$	24,326
Subservicing	33,399		27,210
Reverse servicing	12,707		1,913
Adjacent businesses	2,174		2,766
Other Servicing Segment expenses	4,303		3,015
Total expenses and impairments	$	147,609	$	59,230

Other Income (Expense)

Total other expense was $(57.1) million for the three months ended March 31, 2013 compared to $(14.6) million for the three months ended March 31, 2012, an increase in expense, net of income, of $42.5 million, or 291.1%, primarily due to the net effect of the following:

• Interest income was $13.4 million for the three months ended March 31, 2013 compared to $2.4 million for the three months ended March 31, 2012, an increase of $11.0 million, due in part to interest earned on our participating interests in reverse mortgages combined with accretion recognized related to discounts recorded on acquired servicer advances. During 2013, in conjunction with an MSR acquisition, we allocated a discount to the related acquired servicer advances. This discount is realized as the underlying servicer advances are collected. We recognized $6.1 million of the discount for the three month ended March 31, 2013 related to collections on the servicer advances.

• Interest expense was $71.3 million for the three months ended March 31, 2013 compared to $17.0 million for the three ended March 31, 2012, an increase of $54.3 million, or 319.4%, primarily due to higher average outstanding debt of$2,398.2 million for the three months ended March 31, 2013 compared to $623.8 million in the comparable 2012 period. The impact of the higher debt balances is partially offset by lower interest rates due to declines in the base LIBOR and decreases in the overall index margin on outstanding servicer advance facilities. Interest expense from the senior unsecured notes was $22.7 million and $8.5 million, for the three months ended March 31, 2013 and 2012, respectively.

Originations Segment

The Originations Segment involves the origination, packaging, and sale of GSE mortgage loans into the secondary markets via whole loan sales or securitizations.

Increase in originations volume primarily governs the increase in revenues, expenses and other income (expense) of our Originations Segment. The table below provides detail of the loan characteristics of loans originated for the periods indicated.

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	For the three months ended March 31,
Originations Volume (in millions)	2013		2012
Retail	$	2,043.1	$	673.4
Wholesale	1,102.7		516.6
Correspondent	267.2		—
Total Originations	$	3,413.0	$	1,190.0

Originations Segment for the Three Months Ended March 31, 2013 and 2012

Originations Revenue

Total revenue was $185.7 million for the three months ended March 31, 2013 compared to $70.5 million for the three months ended March 31, 2012, an increase of $115.2 million, or 163.4%, primarily due to the net effect of the following:

• Other fee income was $5.9 million for the three months ended March 31, 2013 compared to $(19.0) thousand for the three months ended March 31, 2012, an increase of $5.9 million, primarily due to an increase in net points and fees collected of $15.9 million offset by an increase in broker fees paid of $9.6 million.

Gain on mortgage loans held for sale consists of the following for the periods indicated (in thousands).

	For the three months ended March 31,
	2013			2012
Gain on sale	$	139,130		$	43,917
Provision for repurchases	(5,803		)	(3,005		)
Capitalized servicing rights	31,268			13,066
Fair value mark-to-market adjustments	(6,934		)	(5,095		)
Mark-to-market on derivatives/hedges	22,132			21,617
Total gain on mortgage loans held for sale	$	179,793		$	70,500

Gain on mortgage loans held for sale was $179.8 million for the three months ended March 31, 2013, compared to $70.5 million for the three months ended March 31, 2012, an increase of $109.3 million, or 155.0%, primarily due to the net effect of the following:

• Increase of $95.2 million from larger volume of originations, which increased to $3.4 billion in 2013 from $1.2 billion in 2012, and higher margins earned on the sale of residential mortgage loans during the period.

• Increase of $18.2 million from capitalized MSRs due to the larger volume of originations and subsequent retention of MSRs.

• Increase of $0.5 million from change in unrealized gains/losses on derivative financial instruments. These include IRLCs and forward sales of MBS.

• Decrease of $1.8 million resulting from the change in fair value on newly-originated loans.

• Decrease of $2.8 million from a larger provision for repurchases as a result of the increase in our loan sale volume.

Expenses and Impairments

Expenses and impairments were $111.9 million for the three months ended March 31, 2013 compared to $28.5 million for the three months ended March 31, 2012, an increase of $83.4 million, or 292.6%, primarily due to the net effect of the following:

• Increase of $42.5 million in salaries, wages and benefits expense from increase in average headcount of 1,800 in 2013 from 772 in 2012 and increases in performance-based compensation due to increases in originations volume.

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• Increase of $42.6 million in general and administrative and occupancy expense primarily due to an increase in our overhead expenses from the higher originations volume in the 2013 period.

Other Income and Expenses

Total other income (expense) was $(5.8) million for the three months ended March 31, 2013 compared to $(0.2) million for the three months ended March 31, 2012, an increase in expense, net of income, of $5.6 million primarily due to the net effect of the following:

• Interest income was $11.0 million for the three months ended March 31, 2013 compared to $3.5 million for the three months ended March 31, 2012, an increase of $7.5 million, or 214.3%, representing interest earned from originated loans prior to sale or securitization. The increase is primarily due to the increase in the volume of originations. Loans are typically sold within 30 days of origination.

• Interest expense was $16.8 million for the three months ended March 31, 2013 compared to $3.8 million for the three months ended March 31, 2012, an increase of $13.0 million, or 342.1%, primarily due to an increase in originations volume in 2013 and associated financing required to originate these loans, combined with a slight increase in outstanding average days in warehouse on newly originated loans. Additionally, we recognized $8.0 million additional interest expense on senior unsecured notes. In the third quarter of 2012, we began allocating a portion of our interest expense from our unsecured senior notes to our originations segment to match the benefit this segment will receive from future portfolio acquisitions due to the ability to recapture portfolio runoff.

Legacy Portfolio and Other

Our Legacy Portfolio and Other consist primarily of non-prime and nonconforming residential mortgage loans that we primarily originated from April to July 2007. Revenues and expenses are primarily a result of mortgage loans transferred to securitization trusts that were structured as secured borrowings, resulting in carrying the securitized loans as mortgage loans on our consolidated balance sheets and recognizing the asset-backed certificates as nonrecourse debt. These loans were transferred on October 1, 2009, from mortgage loans held for sale to a held-for-investment classification at fair value on the transfer date. Subsequent to the transfer date, we completed the securitization of the mortgage loans, which was structured as a secured borrowing. This structure resulted in carrying the securitized loans as mortgages on our consolidated balance sheet and recognizing the asset-backed certificates acquired by third parties as nonrecourse debt.

The table below provides detail of the characteristics of our securitization trusts included in Legacy Portfolio and other for the periods indicated (in thousands).

	March 31,
	2013		2,012
Performing – UPB	$	266,854	$	285,648
Nonperforming (90+ Delinquency) - UPB	81,968		85,790
REO - Estimated Fair Value	15,487		5,720
Total Legacy Portfolio and Other – UPB	$	364,309	$	377,158

Legacy Portfolio and Other for the Three Months Ended March 31, 2013 and 2012

Total revenues were $0.4 million for the three months ended March 31, 2013 compared to $0.6 million for the three months ended March 31, 2012, a decrease of $0.2 million. This decrease was primarily a result of decreased ancillary income on our legacy portfolio.

Total expenses and impairments were $9.1 million for the three months ended March 31, 2013 compared to $8.9 million for the three months ended March 31, 2012, an increase of $0.2 million, or 2.2%.

Interest income, net of interest expense remained same at $0.5 million for the three months ended March 31, 2013 as compared to $0.5 million for the three months ended March 31, 2012.

In addition, we recorded a gain on interest rate swaps and caps of $0.5 million for the three months ended March 31, 2013, compared to loss of $(0.3) million recorded during the comparable 2012 period. In conjunction with the Reorganization, FIF

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contributed outstanding interest rate swaps in March 2012 to Nationstar. These interest rate swaps on ABS debt generally require Nationstar to pay a fixed interest rate and receive a variable interest rate based on LIBOR. These interest rate swaps have not been designated as accounting hedges.

Analysis of Items on Consolidated Balance Sheet

Assets

Restricted cash consists of certain custodial accounts related to collections on certain mortgage loans and mortgage loan advances that have been pledged to debt counterparties under various master repurchase agreements (MRAs). Restricted cash was $360.5 million at March 31, 2013, a decrease of $32.7 million from December 31, 2012, primarily a result of lower servicer advance reimbursement amounts due to the timing of recoveries on pledged servicer advances offset by new custodial deposits on additional custodial balances related to our servicing portfolio acquisitions.

Accounts receivable consists primarily of accrued interest receivable on mortgage loans and securitizations, collateral deposits on surety bonds and advances made to nonconsolidated securitization trusts and various taxing authorities, as required under various servicing agreements related to delinquent loans, which are ultimately repaid from the securitization trusts. Accounts receivable increased $0.6 billion to $3.6 billion at March 31, 2013, primarily due to the increase in our servicing portfolio as a result of the closing on a portion of our MSR acquisition during the first quarter of 2013.

Mortgage loans held for sale are carried at fair value. We estimate fair value by evaluating a variety of market indicators including recent trades and outstanding commitments. Mortgage loans held for sale were $1,703.7 million at March 31, 2013, an increase of $223.2 million from December 31, 2012, primarily due to $3.8 billion of loan originations and purchases during the 2013 period offset by $(3.5) billion in mortgage loan sales.

Mortgage loans held for investment, subject to nonrecourse debt - Legacy Assets consist of nonconforming or subprime mortgage loans securitized which serve as collateral for the nonrecourse debt. Mortgage loans held for investment, subject to nonrecourse debt - Legacy Assets was $235.9 million at March 31, 2013, a decrease of $3.0 million from December 31, 2012, as $1.5 million was transferred to REO during the three months ended March 31, 2013.

In 2012, we purchased the servicing rights to certain reverse mortgages. As servicer of these reverse mortgages, we are required to fund certain amounts related to the underlying loans. Reverse mortgage interests consists of scheduled and unscheduled draws on reverse residential mortgage loans, capitalized interest and servicing fees, and fees paid to taxing authorities to cover unpaid taxes and insurance. Reverse mortgage interests were $978.7 million at March 31, 2013, an increase of $228.4 million from December 31, 2012, primarily due to additional amounts advanced under reverse mortgage interests. In addition to new advances made, in February 2013, Nationstar acquired certain fixed and adjustable rate reverse mortgage loans from NIC Reverse Loan LLC.

Receivables from affiliates consist of periodic transactions with Nationstar Regular Holdings, Ltd., a subsidiary of FIF. These transactions typically involve the monthly payment of principal and interest advances that are required to be remitted to securitization trusts as required under various Pooling and Servicing Agreements. These amounts are later repaid to us when principal and interest advances are recovered from the respective borrowers. Receivables from affiliates were $8.9 million at March 31, 2013, a decrease of $3.7 million from December 31, 2012. Prior to our March 2012 restructuring in conjunction with our initial public offering, FIF contributed a portion of the outstanding balance in receivables from affiliates related to outstanding interest rate swap settlements to the Company.

MSRs at fair value consist of servicing assets related to all existing forward residential mortgage loans transferred to a third party in a transfer that meets the requirements for sale accounting or through the acquisition of the right to service residential mortgage loans that do not relate to our assets. MSRs were $1,289.6 million at March 31, 2013, an increase of $653.7 million over December 31, 2012, primarily a result of the purchase of servicing portfolios for $632.2 million combined with capitalization of $31.3 million newly created MSRs, and a $9.7 million decrease in the fair value of our MSRs.

MSRs at amortized cost consists of certain reverse mortgage MSRs acquired in 2012. MSRs at amortized cost were $10.9 million at March 31, 2013, a decrease of $0.1 million from December 31, 2012. The decrease represents the amortization of this portfolio.

Property and equipment, net is comprised of land, furniture, fixtures, leasehold improvements, computer software, computer hardware, and software in development and other. These assets are stated at cost less accumulated depreciation. Property and equipment, net was $77.4 million million at March 31, 2013, an increase of $2.4 million from December 31, 2012, as we invested in information technology systems to support volume growth in both our Servicing and Originations Segments.

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REO, net represents property we acquired as a result of foreclosures on delinquent mortgage loans. REO, net is recorded at estimated fair value, less costs to sell, at the date of foreclosure. Any subsequent operating activity and declines in value are charged to earnings. REO, net was $15.5 million at March 31, 2013, an increase of $5.0 million from December 31, 2012. This increase was primarily due to foreclosure related activities on our expanded portfolio.

Other assets include deferred financing costs, derivative financial instruments, prepaid expenses and loans subject to repurchase rights from Ginnie Mae. Other assets increased $47.5 million from December 31, 2012 to $369.6 million, primarily due to an increase of $30.4 million in derivative financial instruments, $10.7 million increase in deferred financing cost, and an increase in deposits on pending MSR acquisitions of $8.0 million.

Liabilities and Stockholders' Equity

At March 31, 2013, total liabilities were $8.1 billion, a $1.7 billion increase from December 31, 2012. The increase was primarily due to a $0.9 billion increase in payables and accrued liabilities and our issuance of $600.0 million in unsecured senior notes in February and March 2013. In addition, we had an increase in excess spread financing of $210.8 million and an increase in participating interest financing of $210.8 million. The increases are generally the result of our acquisitions of MSR portfolios and the increase in our mortgage origination business.

Included in our payables and accrued liabilities caption on our balance sheet is our reserve for repurchases and indemnifications of $20.9 million and $18.5 million at March 31, 2013 and December 31, 2012, respectively. This liability represents our (i) estimate of losses to be incurred on the repurchase of certain loans that we previously sold and (ii) estimate of losses to be incurred for indemnification of losses incurred by purchasers or insurers with respect to loans that we sold. Certain sale contracts include provisions requiring us to repurchase a loan or indemnify the purchaser or insurer for losses if a borrower fails to make certain initial loan payments due to the acquirer or if the accompanying mortgage loan fails to meet certain customary representations and warranties. These representations and warranties are made to the loan purchasers or insurers about various characteristics of the loans, such as the manner of origination, the nature and extent of underwriting standards applied and the types of documentation being provided and typically are in place for the life of the loan. Although the representations and warranties are in place for the life of the loan, we believe that most repurchase requests occur within the first five years of the loan. In the event of a breach of the representations and warranties, we may be required to either repurchase the loan or indemnify the purchaser for losses it sustains on the loan. In addition, an investor may request that we refund a portion of the premium paid on the sale of mortgage loans if a loan is prepaid within a certain amount of time from the date of sale. We record a provision for estimated repurchases, loss indemnification and premium recapture on loans sold, which is charged to gain on mortgage loans held for sale.

The activity of our outstanding repurchase reserves were as follows for the periods indicated (in thousands).

	Three Months Ended March 31, 2013			Year Ended December 31, 2012
Repurchase reserves, beginning of period	$	18,511		$	10,026
Additions	5,541			13,121
Charge-offs	(3,150		)	(4,636		)
Repurchase reserves, end of period	$	20,902		$	18,511

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The following table summarizes the changes in UPB and loan count related to unresolved repurchase and indemnification requests for the periods indicated (dollars in millions):

	Three Months Ended March 31, 2013					Year Ended December 31, 2012
	UPB			Count		UPB			Count
Beginning balance	$	14.0		79		$	12.9		61
Repurchases & indemnifications	(3.3		)	(24	)	(5.5		)	(26	)
Claims initiated	15.6			87		24.3			132
Rescinded	(5.3		)	(27	)	(17.7		)	(88	)
Ending Balance	$	21.0		115		$	14.0		79

The following table details our loan sales by period (dollars in billions):

	Three Months Ended March 31			Year Ended December 31,
	2013			2012			2011			2010			2009			Total
	$		Count	$		Count	$		Count	$		Count	$		Count	$		Count
Loan Sales	$	3.4	14,321	$	6.9	31,262	$	3.3	16,629	$	2.6	13,090	$	1.0	5,344	$	17.2	80,646

We increase the reserve by applying an estimated loss factor to the principal balance of loan sales. Secondarily, the reserve may be increased based on outstanding claims received. We have observed an increase in repurchase requests in each of the last five years. We believe that because of the increase in our loan originations since 2008, repurchase requests are likely to increase. Should home values continue to decrease, our realized loan losses from loan repurchases and indemnifications may increase as well. As such, our reserve for repurchases may increase beyond our current expectations. While the ultimate amount of repurchases and premium recapture is an estimate, we consider the liability to be adequate at each balance sheet date.

At March 31, 2013, total stockholders' equity was $824.3 million, a $66.6 million increase from December 31, 2012, which is primarily attributable to net income of $62.6 million in the 2013 period, $2.9 million in share-based compensation, $2.7 million in excess tax benefit from share based comp, $5.0 million in contributions from joint venture members to non-controlling interests and offset by a tax withholding of $6.6 million related to a share based settlement of common stock by management.

Impact of Inflation and Changing Prices

Our consolidated financial statements and notes thereto presented herein have been prepared in accordance with GAAP, which requires the measurement of financial position and operating results in terms of historical dollars without considering the changes in the relative purchasing power of money over time due to inflation. The impact of inflation is reflected in the increased cost of our operations. Unlike most industrial companies, nearly all of our assets and liabilities are monetary in nature. As a result, interest rates have a greater impact on our performance than do the effects of general levels of inflations. Interest rates do not necessarily move in the same direction or to the same extent as the prices of goods and services.

Recent Accounting Developments

See Note 2, Recent Accounting Developments, of the notes to the consolidated financial statements for details of recently issued accounting pronouncements and their expected impact on our consolidated financial statements.

Liquidity and Capital Resources

Liquidity measures our ability to meet potential cash requirements, including the funding of servicing advances, the payment of operating expenses, the originations of loans and the repayment of borrowings. Our cash balance increased from $152.6 million as of December 31, 2012 to $220.0 million as of March 31, 2013, primarily due to cash inflows from financing activities, offset by cash outflows in our operating and investing activities.

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From 2010 through 2012, we have completed offerings of $1.1 billion of unsecured senior notes, with maturity dates ranging from April 2015 to October 2020. We pay interest semi-annually to the note holders of these notes at interest rates ranging from 7.875% to 10.875%. In February 2013, we completed the offering of $400.0 million aggregate principal amount of unsecured senior notes, with a maturity date of July 2021, in a private placement transaction. After deducting the initial purchasers' discounts, we received net cash proceeds of approximately $394.0 million. In addition, in March 2013, we issued an additional $200.0 million of unsecured senior notes as an add on to the $400.0 million of unsecured senior notes issued in February 2013, in a private placement transaction. Under the terms of these unsecured senior notes, we pay interest biannually to the note holders at an interest rate of 6.50%. We use a significant portion of the proceeds from these offerings to fund newly originated loans until these funds are ultimately deployed towards the purchase of mortgage servicing rights or other purposes.

We grew our servicing portfolio from $103.3 billion in UPB as of March 31, 2012 to $312.5 billion in UPB as of March 31, 2013. We shifted our strategy after 2007 to leverage our industry-leading servicing capabilities and capitalize on the opportunities to grow our originations platform which has led to the strengthening of our liquidity position. As a part of our shift in strategy, we ceased originating non-prime loans in 2007, and new originations have been focused on loans that are eligible to be sold to GSEs. Since 2008, substantially all originated loans have either been sold or are pending sale.

In 2012, we acquired the servicing rights of approximately $28.4 billion in unpaid principal balance in reverse mortgage loans. As servicer for these reverse mortgage loans, among other things, we are required to make advances to borrowers as required. These advances are temporarily financed through our reverse participations and max claim buyouts financing facility. We typically hold the participation interests which are made up of the related advances for approximately 30 days and then pool the participation interests into a government securitization and repay the financing facility. At March 31, 2013, our maximum unfunded advance obligation related to these reverse mortgage loans was approximately $4.6 billion.

As part of the normal course of our business, we borrow money periodically to fund servicing advances and loan originations. The loans we originate are financed through several warehouse lines on a short-term basis. We typically hold the loans for approximately 30 days and then sell the loans or place them in government securitizations and repay the borrowings under the warehouse lines. We rely upon several counterparties to provide us with financing facilities to fund a portion of our servicing advances and to fund our loan originations on a short- term basis. Our ability to fund current operations depends upon our ability to secure these types of short term financings on acceptable terms and to renew or replace the financings as they expire.

At this time, we see no material negative trends that we believe would affect our access to long-term borrowings, short-term borrowings or bank credit lines sufficient to maintain our current operations, or would likely cause us to cease to be in compliance with any applicable covenants in our indebtedness or that would inhibit our ability to fund operations and capital commitments for the next 12 months.

Our primary sources of funds for liquidity include: (i) lines of credit, other secured borrowings and the unsecured senior notes; (ii) servicing fees and ancillary fees; (iii) payments received from sale or securitization of loans; (iv) payments received from mortgage loans held for sale; and (v) payments from the liquidation or securitization of our outstanding participating interests in reverse mortgage loans.

Our primary uses of funds for liquidity include: (i) funding of servicing advances; (ii) originations of loans; (iii) payment of interest expenses; (iv) payment of operating expenses; (v) repayment of borrowings; (vi) payments for acquisitions of MSRs; and (vii) scheduled and unscheduled draws on our serviced reverse residential mortgage loans.

Our servicing agreements impose on us various rights and obligations that affect our liquidity. Among the most significant of these obligations is the requirement that we advance our own funds to meet contractual principal and interest payments for certain investors and to pay taxes, insurance, foreclosure costs and various other items that are required to preserve the assets being serviced. Delinquency rates and prepayment speed affect the size of servicing advance balances. As a result of our purchases of the servicing rights to certain reverse mortgages in 2012, we are required to fund payments due to borrowers, which advances are typically greater than advances on forward residential mortgages. These advances are typically recovered upon weekly or monthly reimbursement or from sale in the market.

We believe there are opportunities to grow our business through acquisitions and we actively explore potential acquisition opportunities in the ordinary course of our business. Potential acquisitions may include MSRs relating to residential mortgage loans, subservicing contracts, servicing platforms and originations platforms, as well as other assets and liabilities or businesses in related lines of business. Any future acquisitions could require substantial additional capital in excess of cash from operations. We may fund these potential acquisitions through a combination of cash on hand, the proceeds of a co-investment by Newcastle Investment Corp., and certain funds managed by Fortress, the proceeds of advance financing facilities and/or other issuances of debt.

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Operating Activities

Our operating activities used $372.2 million of cash flow for the three months ended March 31, 2013 compared to providing $135.3 million of cash flow for the same period in the prior year. The increase in cash used by operating activities of $507.5 million during the 2013 period was primarily due to higher volume originations of residential mortgage loans partially offset by higher volume of sales of mortgage loans. The decrease was primarily due to the net effect of the following:

• Decrease of $2,591.2 million due to higher originations volume combined with our purchases of mortgage loans held for sale. We originated and purchased $3,781.1 million in residential mortgage loans during the three month period ended March 31, 2013, compared to $1,189.9 million in mortgage originations and purchases for the comparable 2012 period. This decrease was partially offset by an increase of $2,391.8 million in our cash inflows from proceeds received from the sale of our residential mortgage loans and payments received on mortgage loans. We received $3,694.9 million in cash proceeds from loan sales and principal collections for the three month ended March 31, 2013, compared to $1,303.1 million for the comparable 2012 period.

• Increase of $260.6 million in cash outflows used by working capital which used $210.3 million for the three months ended March 31, 2013 compared to $29.5 million in cash inflow for the comparable 2012 period.

Investing Activities

Our investing activities used $327.8 million and $2.4 million of cash flow for the three months ended March 31, 2013 and 2012, respectively. The $325.4 million increase in cash flows used by investing activities from the 2012 period to the 2013 period was primarily a result of our first quarter MSR acquisitions and deposits on pending MSR acquisitions.

Financing Activities

Our financing activities provided $767.4 million and $160.6 million of cash flow during the three months ended March 31, 2013 and 2012, respectively. The $627.6 million increase in cash flows provided by our financing activities was primarily the result of our two additional unsecured senior notes offerings during February 2013 and March 2013, respectively.

Contractual Obligations

Except as described below, there were no other significant changes to our outstanding contractual obligations as of March 31, 2013, from amounts previously disclosed in our Annual Report or Form 10-K filed on March 15, 2013.

In February 2013, we completed the offering of $400 million aggregate principal amount of 6.50% Senior Notes due 2021, in a private placement transaction, for net cash proceeds of $394.0 million. In addition, in March 2013, we issued an additional $200 million aggregate principal amount of 6.50% of Senior Notes due 2021, in a private placement transaction. We issued the notes with an issue premium of $6.5 million for net cash proceeds of $203.5 million.

Variable Interest Entities and Off Balance Sheet Arrangements

See Note 3, Variable Interest Entities and Securitizations, of the notes of the consolidated financial statements for a summary of Nationstar's transactions with VIEs and unconsolidated balances details of their impact on our consolidated financial statements.

Derivatives

See Note 10, Derivative Financial Instruments, of the notes of the consolidated financial statements for a summary of Nationstar's derivative transactions.

Item 3. Quantitative and Qualitative Disclosures about Market Risk

We are exposed to a variety of market risks which include interest rate risk, consumer credit risk and counterparty credit risk.

Interest Rate Risk

Changes in interest rates affect our operations primarily as follows:

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Servicing Segment

• an increase in interest rates would increase our costs of servicing our outstanding debt, including our ability to finance servicing advances;

• a decrease (increase) in interest rates would generally increase (decrease) prepayment rates and may require us to report a decrease (increase) in the value of our MSRs;

• a change in prevailing interest rates could impact our earnings from our custodial deposit accounts; and

• an increase in interest rates could generate an increase in delinquency, default and foreclosure rates resulting in an increase in both operating expenses and interest expense and could cause a reduction in the value of our assets.

Originations Segment

• a substantial and sustained increase in prevailing interest rates could adversely affect our loan originations volume because refinancing an existing loan would be less attractive and qualifying for a loan may be more difficult; and

• an increase in interest rates would increase our costs of servicing our outstanding debt, including our ability to finance loan originations;

We actively manage the risk profiles of IRLCs and mortgage loans held for sale on a daily basis and enter into forward sales of MBS in an amount equal to the portion of the IRLC expected to close, assuming no change in mortgage interest rates. In addition, to manage the interest rate risk associated with mortgage loans held for sale, we enter into forward sales of MBS to deliver mortgage loan inventory to investors.

Consumer Credit Risk

We sell our loans on a nonrecourse basis. We also provide representations and warranties to purchasers and insurers of the loans sold that typically are in place for the life of the loan. In the event of a breach of these representations and warranties, we may be required to repurchase a mortgage loan or indemnify the purchaser, and any subsequent loss on the mortgage loan may be borne by us. If there is no breach of a representation and warranty provision, we have no obligation to repurchase the loan or indemnify the investor against loss. The outstanding UPB of loans sold by us represents the maximum potential exposure related to representation and warranty provisions.

We maintain a reserve for losses on loans repurchased or indemnified as a result of breaches of representations and warranties on our sold loans. Our estimate is based on our most recent data regarding loan repurchases and indemnity payments, actual credit losses on repurchased loans, recovery history, among other factors. Our assumptions are affected by factors both internal and external in nature. Internal factors include, among other things, level of loan sales, as well as to whom the loans are sold, the expectation of credit loss on repurchases and indemnifications, our success rate at appealing repurchase demands and our ability to recover any losses from third parties. External factors that may affect our estimate include, among other things, the overall economic condition in the housing market, the economic condition of borrowers, the political environment at investor agencies and the overall U.S. and world economy. Many of the factors are beyond our control and may lead to judgments that are susceptible to change.

Counterparty Credit Risk

We are exposed to counterparty credit risk in the event of non-performance by counterparties to various agreements. We monitor the credit ratings of our counterparties and do not anticipate losses due to counterparty non-performance.

Sensitivity Analysis

We assess our market risk based on changes in interest rates utilizing a sensitivity analysis. The sensitivity analysis measures the potential impact on fair values based on hypothetical changes (increases and decreases) in interest rates.

We use a duration-based model in determining the impact of interest rate shifts on our loan portfolio, certain other interest-bearing liabilities measured at fair value and interest rate derivatives portfolios. The primary assumption used in these models is that an increase or decrease in the benchmark interest rate produces a parallel shift in the yield curve across all maturities.

We utilize a discounted cash flow analysis to determine the fair value of MSRs and the impact of parallel interest rate shifts on MSRs. The primary assumptions in this model are prepayment speeds and market discount rates. However, this analysis ignores the impact of interest rate changes on certain material variables, such as the benefit or detriment on the value of future loan originations, non-parallel shifts in the spread relationships between MBS, swaps and U.S. Treasury rates and changes in

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primary and secondary mortgage market spreads. For mortgage loans, IRLCs and forward delivery commitments on MBS, we rely on a model in determining the impact of interest rate shifts. In addition, for IRLCs, the borrower’s propensity to close their mortgage loans under the commitment is used as a primary assumption.

Our total market risk is influenced by a wide variety of factors including market volatility and the liquidity of the markets. There are certain limitations inherent in the sensitivity analysis presented, including the necessity to conduct the analysis based on a single point in time and the inability to include the complex market reactions that normally would arise from the market shifts modeled.

We used March 31, 2013 market rates on our instruments to perform the sensitivity analysis. The estimates are based on the market risk sensitive portfolios described in the preceding paragraphs and assume instantaneous, parallel shifts in interest rate yield curves. These sensitivities are hypothetical and presented for illustrative purposes only. Changes in fair value based on variations in assumptions generally cannot be extrapolated because the relationship of the change in fair value may not be linear.

The following table summarizes the estimated change in the fair value of our assets and liabilities sensitive to interest rates as of March 31, 2013 given hypothetical instantaneous parallel shifts in the yield curve:

Change in Fair Value	March 31, 2013
(in thousands)	Down 25 bps			Up 25 bps
Increase (decrease) in assets
Mortgage loans held for sale	$	19,502		$	(21,927	)
Mortgage servicing rights – fair value	(19,724		)	20,745
Other assets (derivatives)
Interest Rate Lock Commitments	31,986			(43,322		)
Total change in assets	31,764			(44,504		)
Increase (decrease) in liabilities
Derivative financial instruments
Interest rate swaps and caps	(1,036		)	1,032
Forward MBS trades	58,365			(67,153		)
Excess spread financing (at fair value)	2,443			(2,374		)
Total change in liabilities	59,772			(68,495		)
Total, net change	$	(28,008	)	$	23,991

Item 4.Controls and Procedures

Evaluation of Disclosure Controls and Procedures

Our management, with the participation of our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of our disclosure controls and procedures pursuant to Rule 13a-15 under the Securities Exchange Act of 1934, as amended (Exchange Act), as of March 31, 2013.

Based on this evaluation, our Chief Executive Officer and Chief Financial Officer concluded that, as of March 31, 2013, our disclosure controls and procedures are effective. Disclosure controls and procedures are designed at a reasonable assurance level and are effective to provide reasonable assurance that information we are required to disclose in reports that we file or submit under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to our management, including our chief executive officer and chief financial officer, as appropriate, to allow timely decisions regarding required disclosure.

Changes in Internal Control over Financial Reporting

There were no changes in our internal control over financial reporting that occurred during the quarter ended March 31, 2013 that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

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Limitations on Effectiveness of Controls and Procedures

In designing and evaluating the disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives.

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PART II – OTHER INFORMATION

Item 1.Legal Proceedings

There have been no material changes or additions to the legal proceedings previously disclosed under "Legal Proceedings" included in our Annual Report on Form 10-K filed with the SEC on March 15, 2013. From time to time, we are party to various legal proceedings that have arisen in the normal course of conducting business. Although the outcome of these proceedings cannot be predicted with certainty, management does not currently expect any of the proceedings pending against us, individually or in the aggregate, to have a material effect on our business, financial condition and results of operations (see Note 18 - Commitments and Contingencies).

Item 1A.Risk Factors

There have been no material changes or additions to the risk factors previously disclosed under “Risk Factors” included in our Annual Report on Form 10-K filed with the SEC on May 7, 2013.

Item 2.Unregistered Sales of Equity Securities and Use of Proceeds

Purchase of Equity Securities By the Issuer and Affiliated Purchasers

Period	(a) Total Number of Shares (or Units) Purchased 1	(b) Average Price Paid per Share (or Unit)	(b) Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs	(d) Maximum Number (or Appropriate Dollar Value) of Shares (or Units) that May Yet Be Purchased Under the Plans or Program
January 1, 2013 - January 31, 2013	—	—	—	—
February 1, 2013 - February 28, 2013	—	—	—	—
March 1, 2013 - March 31, 2013	161,651 Shares	$ 41.11	—	—
Total	161,651 Shares	$ 41.11	—	—

¹ The 161,651 shares of common stock of Nationstar Inc. reported herein represent the surrender of these shares to Nationstar Inc. in an amount equal to the amount of tax withheld by Nationstar Inc. in satisfaction of the withholding obligations of certain employees in connection with the vesting of restricted shares on March 7, 2013. As of the date of this report, Nationstar Inc. has no publicly announced plans or programs to repurchase Nationstar Inc. common stock.

Item 3. Defaults Upon Senior Securities

None.

Item 4.Mine Safety Disclosures

Not applicable.

Item 5.Other Information

None.

71

Item 6.Exhibits, Financial Statement Schedules

		Incorporated by Reference
Exhibit Number	Description	Form	File No.	Exhibit	Filing Date	Filed or Furnished Herewith
2.1+	Mortgage Servicing Rights Purchase and Sale Agreement, dated as of January 6, 2013, between Nationstar Mortgage LLC and Bank of America, National Association	8-K	001-35449	2.1	1/10/2013
4.1	Indenture, dated as of February 7, 2013, by and among Nationstar Mortgage LLC, Nationstar Capital Corporation, the guarantors thereto and Wells Fargo Bank, National Association, as trustee	8-K	001-35449	4.1	2/7/2013
4.2	First Supplemental Indenture, dated as of March 26, 2013, by and among Nationstar Mortgage LLC, Nationstar Capital Corporation, the guarantors thereto and Wells Fargo Bank, National Association, as trustee	8-K	001-35449	4.2	3/26/2013
4.3*	Amendment No. 4, dated March 7, 2013, to Indenture, dated as of June 26, 2012, between Nationstar Advance Funding Trust 2012-C and Wells Fargo Bank, Nationstar Association, as indenture trustee					X
4.4*	Amendment No. 5, dated March 29, 2013, to Indenture, dated as of June 26, 2012, between Nationstar Advance Funding Trust 2012-C and Wells Fargo Bank, Nationstar Association, as indenture trustee					X
4.5	Fourth Amended and Restated Indenture, dated January 31, 2013, among Nationstar Agency Advance Funding Trust, as issuer, The Bank of New York Mellon, as indenture trustee, calculation agent, paying agent and securities intermediary, Nationstar Mortgage LLC, as servicer and as administrator, and Barclays Bank PLC, as administrative agent	8-K	001-35449	10.1	2/6/2013
4.6	Series 2013-VF1 Indenture Supplement to Fourth Amended and Restated Indenture, dated January 31, 2013, among Nationstar Agency Advance Funding Trust, as issuer, The Bank of New York Mellon, as indenture trustee, calculation agent, paying agent and securities intermediary, Nationstar Mortgage LLC, as administrator and as servicer, and Barclays Bank PLC, as administrative agent	8-K	001-35449	10.2	2/6/2013
4.7	Series 2013-T1 Indenture Supplement to Fourth Amended and Restated Indenture, dated January 31, 2013, among Nationstar Agency Advance Funding Trust, as issuer, The Bank of New York Mellon, as indenture trustee, calculation agent, paying agent and securities intermediary, Nationstar Mortgage LLC, as administrator and as servicer, and Barclays Bank PLC, as administrative agent	8-K	001-35449	10.3	2/6/2013

72

		Incorporated by Reference
Exhibit Number	Description	Form	File No.	Exhibit	Filing Date	Filed or Furnished Herewith
4.8	Series 2013-T2 Indenture Supplement to Fourth Amended and Restated Indenture, dated January 31, 2013, among Nationstar Agency Advance Funding Trust, as issuer, The Bank of New York Mellon, as indenture trustee, calculation agent, paying agent and securities intermediary, Nationstar Mortgage LLC, as administrator and as servicer, and Barclays Bank PLC, as administrative agent	8-K	001-35449	10.4	2/6/2013
10.1	Registration Rights Agreement, dated February 7, 2013, among the issuers, the guarantors party thereto, and Merrill Lynch, Pierce, Fenner & Smith Incorporated, Credit Suisse Securities (USA) LLC, Barclays Capital Inc., Wells Fargo Securities, LLC and RBS Securities Inc., as representatives of the several initial purchasers	8-K	001-35449	10.1	2/7/2013
10.2	Registration Rights Agreement, dated March 26, 2013, among the issuers, the guarantors party thereto, and Merrill Lynch, Pierce, Fenner & Smith Incorporated, Credit Suisse Securities (USA) LLC, Barclays Capital Inc., and Wells Fargo Securities, LLC, as representatives of the several initial purchasers	8-K	001-35449	10.1	3/26/2013
10.3	Amended and Restated Receivables Pooling Agreement, dated January 31, 2013, between Nationstar Agency Advance Funding LLC (depositor) and Nationstar Agency Advance Funding Trust (issuer)	8-K	001-35449	10.5	2/6/2013
10.4	Amended and Restated Receivables Sale Agreement, dated January 31, 2013, between Nationstar Mortgage LLC (receivables seller and servicer) and Nationstar Agency Advance Funding LLC (depositor)	8-K	001-35449	10.6	2/6/2013
10.5*	First Amendment, dated January 31, 2013, to the Addendum to Mortgage Selling and Servicing Contract (Early Advance Funding Agreement), dated December 20, 2012, between Fannie Mae and Nationstar Mortgage LLC	10-K	001-35449	10.11	3/15/2013
10.6	Future Spread Agreement for Non-Agency Mortgage Loans, dated as of January 6, 2013, between Nationstar Mortgage LLC and MSR XIII LLC	10-K	001-35449	10.45	3/15/2013
10.7	Current Excess Servicing Spread Acquisition Agreement for Non-Agency Mortgage Loans, dated as of January 6, 2013, between Nationstar Mortgage LLC and MSR XIII LLC	10-K	001-35449	10.46	3/15/2013
10.8	Future Spread Agreement for FHLMC Mortgage Loans, dated as of January 6, 2013, between Nationstar Mortgage LLC and MSR IX LLC	10-K	001-35449	10.47	3/15/2013
10.9	Current Excess Servicing Spread Acquisition Agreement for FHLMC Mortgage Loans, dated as of January 6, 2013, between Nationstar Mortgage LLC and MSR IX LLC	10-K	001-35449	10.48	3/15/2013
10.10	Future Spread Agreement for FNMA Mortgage Loans, dated as of January 6, 2013, between Nationstar Mortgage LLC and MSR X LLC	10-K	001-35449	10.49	3/15/2013

73

		Incorporated by Reference
Exhibit Number	Description	Form	File No.	Exhibit	Filing Date	Filed or Furnished Herewith
10.11	Current Excess Servicing Spread Acquisition Agreement for FNMA Mortgage Loans, dated as of January 6, 2013, between Nationstar Mortgage LLC and MSR X LLC	10-K	001-35449	10.50	3/15/2013
10.12	Future Spread Agreement for GNMA Mortgage Loans, dated as of January 6, 2013, between Nationstar Mortgage LLC and MSR XI LLC	10-K	001-35449	10.51	3/15/2013
10.13	Current Excess Servicing Spread Acquisition Agreement for GNMA Mortgage Loans, dated as of January 6, 2013, between Nationstar Mortgage LLC and MSR XI LLC	10-K	001-35449	10.52	3/15/2013
10.14	Future Spread Agreement for Non-Agency Mortgage Loans, dated as of January 6, 2013, between Nationstar Mortgage LLC and MSR XII LLC	10-K	001-35449	10.53	3/15/2013
10.15	Current Excess Servicing Spread Acquisition Agreement for Non-Agency Mortgage Loans, dated as of January 6, 2013, between Nationstar Mortgage LLC and MSR XII LLC	10-K	001-35449	10.54	3/15/2013
10.16	Amendment Number Five, dated January 30, 2013, to the Amended and Restated Master Repurchase Agreement, dated October 21, 2010, between Bank of America, N.A. and Nationstar Mortgage LLC	10-K	001-35449	10.66	3/15/2013
10.17*	Transaction Terms Letter for Amended and Restated Master Repurchase Agreement, dated January 30, 2013, between Bank of America, N.A. and Nationstar Mortgage LLC	10-K	001-35449	10.67	3/15/2013
10.18**	Employment Agreement between David Hisey and Nationstar Mortgage Holdings Inc.	8-K	001-35449	10.1	2/21/2013
10.19**	Employment Agreement between Harold Lewis and Nationstar Mortgage Holdings Inc.	10-K	001-35449	10.73	3/15/2013
10.20**	Employment Agreement between Ramesh Lakshminarayanan and Nationstar Mortgage Holdings Inc.	10-K	001-35449	10.74	3/15/2013
10.21**	Form of Cash Award Agreement for Employees under the 2012 Incentive Compensation Plan	10-K	001-35449	10.80	3/15/2013
10.22**	Nationstar Mortgage LLC Annual Incentive Compensation Plan	10-K	001-35449	10.81	3/15/2013
31.1	Certification by Chief Executive Officer pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934 and Section 302 of the Sarbanes-Oxley Act of 2002					X
31.2	Certification by Chief Financial Officer pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934 and Section 302 of the Sarbanes-Oxley Act of 2002					X
32.1	Certification by Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002					X

74

		Incorporated by Reference
Exhibit Number	Description	Form	File No.	Exhibit	Filing Date	Filed or Furnished Herewith
32.2	Certification by Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002					X
101.INS	XBRL Instance Document					X
101.SCH	XBRL Taxonomy Extension Schema Document					X
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document					X
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document					X
101.LAB	XBRL Taxonomy Extension Label Linkbase Document					X
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document					X

* Certain portions of this exhibit have been omitted and have been filed separately with the SEC pursuant to a request for confidential treatment under Rule 24b-2 as promulgated with the Securities Exchange Act of 1934, as amended.

** Management contract, compensatory plan or arrangement.

+ Pursuant to Item 601(b)(2) of Regulation S-K, the registrant hereby undertakes to furnish supplementally a copy of any referenced schedule to the SEC upon request.

75

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	NATIONSTAR MORTGAGE HOLDINGS INC.
May 7, 2013	/s/ Jay Bray
Date	Jay Bray Chief Executive Officer (Principal Executive Officer)
May 7, 2013	/s/ David C. Hisey
Date	David C. Hisey Chief Financial Officer (Principal Accounting and Financial Officer)

76

Exhibit Index

		Incorporated by Reference
Exhibit Number	Description	Form	File No.	Exhibit	Filing Date	Filed or Furnished Herewith
2.1+	Mortgage Servicing Rights Purchase and Sale Agreement, dated as of January 6, 2013, between Nationstar Mortgage LLC and Bank of America, National Association	8-K	001-35449	2.1	1/10/2013
4.1	Indenture, dated as of February 7, 2013, by and among Nationstar Mortgage LLC, Nationstar Capital Corporation, the guarantors thereto and Wells Fargo Bank, National Association, as trustee	8-K	001-35449	4.1	2/7/2013
4.2	First Supplemental Indenture, dated as of March 26, 2013, by and among Nationstar Mortgage LLC, Nationstar Capital Corporation, the guarantors thereto and Wells Fargo Bank, National Association, as trustee	8-K	001-35449	4.2	3/26/2013
4.3*	Amendment No. 4, dated March 7, 2013, to Indenture, dated as of June 26, 2012, between Nationstar Advance Funding Trust 2012-C and Wells Fargo Bank, Nationstar Association, as indenture trustee					X
4.4*	Amendment No. 5, dated March 29, 2013, to Indenture, dated as of June 26, 2012, between Nationstar Advance Funding Trust 2012-C and Wells Fargo Bank, Nationstar Association, as indenture trustee					X
4.5	Fourth Amended and Restated Indenture, dated January 31, 2013, among Nationstar Agency Advance Funding Trust, as issuer, The Bank of New York Mellon, as indenture trustee, calculation agent, paying agent and securities intermediary, Nationstar Mortgage LLC, as servicer and as administrator, and Barclays Bank PLC, as administrative agent	8-K	001-35449	10.1	2/6/2013
4.6	Series 2013-VF1 Indenture Supplement to Fourth Amended and Restated Indenture, dated January 31, 2013, among Nationstar Agency Advance Funding Trust, as issuer, The Bank of New York Mellon, as indenture trustee, calculation agent, paying agent and securities intermediary, Nationstar Mortgage LLC, as administrator and as servicer, and Barclays Bank PLC, as administrative agent	8-K	001-35449	10.2	2/6/2013
4.7	Series 2013-T1 Indenture Supplement to Fourth Amended and Restated Indenture, dated January 31, 2013, among Nationstar Agency Advance Funding Trust, as issuer, The Bank of New York Mellon, as indenture trustee, calculation agent, paying agent and securities intermediary, Nationstar Mortgage LLC, as administrator and as servicer, and Barclays Bank PLC, as administrative agent	8-K	001-35449	10.3	2/6/2013

77

		Incorporated by Reference
Exhibit Number	Description	Form	File No.	Exhibit	Filing Date	Filed or Furnished Herewith
4.8	Series 2013-T2 Indenture Supplement to Fourth Amended and Restated Indenture, dated January 31, 2013, among Nationstar Agency Advance Funding Trust, as issuer, The Bank of New York Mellon, as indenture trustee, calculation agent, paying agent and securities intermediary, Nationstar Mortgage LLC, as administrator and as servicer, and Barclays Bank PLC, as administrative agent	8-K	001-35449	10.4	2/6/2013
10.1	Registration Rights Agreement, dated February 7, 2013, among the issuers, the guarantors party thereto, and Merrill Lynch, Pierce, Fenner & Smith Incorporated, Credit Suisse Securities (USA) LLC, Barclays Capital Inc., Wells Fargo Securities, LLC and RBS Securities Inc., as representatives of the several initial purchasers	8-K	001-35449	10.1	2/7/2013
10.2	Registration Rights Agreement, dated March 26, 2013, among the issuers, the guarantors party thereto, and Merrill Lynch, Pierce, Fenner & Smith Incorporated, Credit Suisse Securities (USA) LLC, Barclays Capital Inc., and Wells Fargo Securities, LLC, as representatives of the several initial purchasers	8-K	001-35449	10.1	3/26/2013
10.3	Amended and Restated Receivables Pooling Agreement, dated January 31, 2013, between Nationstar Agency Advance Funding LLC (depositor) and Nationstar Agency Advance Funding Trust (issuer)	8-K	001-35449	10.5	2/6/2013
10.4	Amended and Restated Receivables Sale Agreement, dated January 31, 2013, between Nationstar Mortgage LLC (receivables seller and servicer) and Nationstar Agency Advance Funding LLC (depositor)	8-K	001-35449	10.6	2/6/2013
10.5*	First Amendment, dated January 31, 2013, to the Addendum to Mortgage Selling and Servicing Contract (Early Advance Funding Agreement), dated December 20, 2012, between Fannie Mae and Nationstar Mortgage LLC	10-K	001-35449	10.11	3/15/2013
10.6	Future Spread Agreement for Non-Agency Mortgage Loans, dated as of January 6, 2013, between Nationstar Mortgage LLC and MSR XIII LLC	10-K	001-35449	10.45	3/15/2013
10.7	Current Excess Servicing Spread Acquisition Agreement for Non-Agency Mortgage Loans, dated as of January 6, 2013, between Nationstar Mortgage LLC and MSR XIII LLC	10-K	001-35449	10.46	3/15/2013
10.8	Future Spread Agreement for FHLMC Mortgage Loans, dated as of January 6, 2013, between Nationstar Mortgage LLC and MSR IX LLC	10-K	001-35449	10.47	3/15/2013
10.9	Current Excess Servicing Spread Acquisition Agreement for FHLMC Mortgage Loans, dated as of January 6, 2013, between Nationstar Mortgage LLC and MSR IX LLC	10-K	001-35449	10.48	3/15/2013
10.10	Future Spread Agreement for FNMA Mortgage Loans, dated as of January 6, 2013, between Nationstar Mortgage LLC and MSR X LLC	10-K	001-35449	10.49	3/15/2013

78

		Incorporated by Reference
Exhibit Number	Description	Form	File No.	Exhibit	Filing Date	Filed or Furnished Herewith
10.11	Current Excess Servicing Spread Acquisition Agreement for FNMA Mortgage Loans, dated as of January 6, 2013, between Nationstar Mortgage LLC and MSR X LLC	10-K	001-35449	10.5	3/15/2013
10.12	Future Spread Agreement for GNMA Mortgage Loans, dated as of January 6, 2013, between Nationstar Mortgage LLC and MSR XI LLC	10-K	001-35449	10.51	3/15/2013
10.13	Current Excess Servicing Spread Acquisition Agreement for GNMA Mortgage Loans, dated as of January 6, 2013, between Nationstar Mortgage LLC and MSR XI LLC	10-K	001-35449	10.52	3/15/2013
10.14	Future Spread Agreement for Non-Agency Mortgage Loans, dated as of January 6, 2013, between Nationstar Mortgage LLC and MSR XII LLC	10-K	001-35449	10.53	3/15/2013
10.15	Current Excess Servicing Spread Acquisition Agreement for Non-Agency Mortgage Loans, dated as of January 6, 2013, between Nationstar Mortgage LLC and MSR XII LLC	10-K	001-35449	10.54	3/15/2013
10.16	Amendment Number Five, dated January 30, 2013, to the Amended and Restated Master Repurchase Agreement, dated October 21, 2010, between Bank of America, N.A. and Nationstar Mortgage LLC	10-K	001-35449	10.66	3/15/2013
10.17*	Transaction Terms Letter for Amended and Restated Master Repurchase Agreement, dated January 30, 2013, between Bank of America, N.A. and Nationstar Mortgage LLC	10-K	001-35449	10.67	3/15/2013
10.18**	Employment Agreement between David Hisey and Nationstar Mortgage Holdings Inc.	8-K	001-35449	10.1	2/21/2013
10.19**	Employment Agreement between Harold Lewis and Nationstar Mortgage Holdings Inc.	10-K	001-35449	10.73	3/15/2013
10.20**	Employment Agreement between Ramesh Lakshminarayanan and Nationstar Mortgage Holdings Inc.	10-K	001-35449	10.74	3/15/2013
10.21**	Form of Cash Award Agreement for Employees under the 2012 Incentive Compensation Plan	10-K	001-35449	10.8	3/15/2013
10.22**	Nationstar Mortgage LLC Annual Incentive Compensation Plan	10-K	001-35449	10.81	3/15/2013
31.1	Certification by Chief Executive Officer pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934 and Section 302 of the Sarbanes-Oxley Act of 2002					X
31.2	Certification by Chief Financial Officer pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934 and Section 302 of the Sarbanes-Oxley Act of 2002					X
32.1	Certification by Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002					X
32.2	Certification by Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002					X

79

		Incorporated by Reference
Exhibit Number	Description	Form	File No.	Exhibit	Filing Date	Filed or Furnished Herewith
101.INS	XBRL Instance Document					X
101.SCH	XBRL Taxonomy Extension Schema Document					X
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document					X
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document					X
101.LAB	XBRL Taxonomy Extension Label Linkbase Document					X
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document					X

* Certain portions of this exhibit have been omitted and have been filed separately with the SEC pursuant to a request for confidential treatment under Rule 24b-2 as promulgated with the Securities Exchange Act of 1934, as amended.

** Management contract, compensatory plan or arrangement.

+ Pursuant to Item 601(b)(2) of Regulation S-K, the registrant hereby undertakes to furnish supplementally a copy of any referenced schedule to the SEC upon request.

80

EX-4.3

Exhibit 4.3

CONFIDENTIAL TREATMENT REQUESTED

===================================================================

NATIONSTAR ADVANCE FUNDING TRUST 2012-C,

as Issuer

and

WELLS FARGO BANK, N. A.,

as Indenture Trustee

__________

AMENDMENT NO. 4

Dated as of March 7, 2013

to the

INDENTURE

Dated as of June 26, 2012

__________

NATIONSTAR ADVANCE FUNDING TRUST 2012-C

Servicer Advance Receivables Backed Notes, Series 2012-C

===================================================================

This Amendment No. 4, dated as of March 7, 2013 (this “Amendment”), to the Indenture, dated as of June 26, 2012 (as amended, restated or otherwise modified as of the date hereof, the “Indenture”), is made by and between NATIONSTAR ADVANCE FUNDING TRUST 2012-C, a Delaware statutory trust, as issuer (the “Issuer”), and WELLS FARGO BANK, N.A., a national banking association, not in its individual capacity, but solely as indenture trustee (the “Indenture Trustee”).

WHEREAS, pursuant to Section 8.02 of the Indenture, with the consent of the Required Noteholders, Nationstar (for so long as it holds any interest in the trust), the Issuer, the Indenture Trustee, and each Hedge Provider may enter into one or more amendments to the Indenture, for the purpose of adding any provisions thereto, changing in any manner or eliminating any of the provisions thereof, or modifying in any manner the rights of the Noteholders thereunder;

WHEREAS, the parties hereto have agreed to amend the Indenture in accordance with the provisions of Section 8.02 of the Indenture and the terms of this Amendment;

WHEREAS, as of the date hereof, there are no Hedge Providers;

WHEREAS, Credit Suisse AG, Cayman Islands Branch, and Alpine Securitization Corp. hold at least 66 2/3% in aggregate of the Commitments set forth in the Note Purchase Agreement and are the Holders of 100% of the Notes; and

NOW, THEREFORE, pursuant to the provisions of the Indenture concerning amendment thereof, and in consideration of the amendments, agreements and other provisions herein contained and of certain other good and valuable consideration the receipt and sufficiency of which is hereby acknowledged by the parties hereto, it is hereby agreed between the parties hereto, as follows:

Section 1. Defined Terms.

As used in this Amendment, capitalized terms have the meanings assigned thereto in the Indenture.

Section 2. Amendments to the Indenture.

(a)Section 1.01 of the Indenture is hereby amended by the addition of the following definitions and the deletion of, in their entirety, the existing definitions of the same terms:

““Sublimit Receivables”: Together, the Non-Backstopped Receivables and the Non-FIFO Receivables.”

““Variable Funding Note Collateral Value”:

With respect to the Collateral and the Variable Funding Notes as of any date, the sum of: (a) with respect to any Pool-Level Advance, the product of (i) the P&I Borrowing Base Amount relating to such Pool-Level Advances and (ii) the applicable Variable Funding Note Discount Factor; (b) with respect to any Loan-Level Delinquency Advance (Non-Judicial States), the product of (i) the P&I Borrowing Base Amount relating to such Loan-Level

Delinquency Advances and (ii) the applicable Variable Funding Note Discount Factor; (c) with respect to any Loan-Level Delinquency Advance (Judicial States), the product of (i) the P&I Borrowing Base Amount relating to such Loan-Level Delinquency Advances and (ii) the applicable Variable Funding Note Discount Factor; (d) with respect to any Escrow Advances (Judicial States), the product of (i) the Receivables Balance of the Eligible Receivables related to such Escrow Advances and (ii) the applicable Variable Funding Note Discount Factor; (e) with respect to any Escrow Advances (Non-Judicial States), the product of (i) the Receivables Balance of the Eligible Receivables related to such Escrow Advances and (ii) the applicable Variable Funding Note Discount Factor; (f) with respect to any Corporate Advances (Judicial States), the product of (i) the Receivables Balance of the Eligible Receivables related to such Corporate Advances and (ii) the applicable Variable Funding Note Discount Factor; (g) with respect to any Corporate Advances (Non-Judicial States), the product of (i) the Receivables Balance of the Eligible Receivables related to such Corporate Advances and (ii) the applicable Variable Funding Note Discount Factor. For purposes of determining the Variable Funding Note Collateral Value, a Receivable shall be deemed unreimbursed until the cash reimbursement thereof is deposited into the Reimbursement Account; (h) with respect to any Legacy Deferred Servicing Fees (Judicial States), the product of (i) the Receivables Balance of the Eligible Receivables related to such Legacy Deferred Servicing Fees (Judicial States) and (ii) the applicable Variable Funding Note Discount Factor; and (i) with respect to any Legacy Deferred Servicing Fees (Non-Judicial States), the product of (i) the Receivables Balance of the Eligible Receivables related to such Legacy Deferred Servicing Fees (Non-Judicial States) and (ii) the applicable Variable Funding Note Discount Factor.

For purposes of determining Variable Funding Note Collateral Value, a Receivable shall be deemed unreimbursed until the cash reimbursement thereof is deposited into the Reimbursement Account.

Notwithstanding any provisions to the contrary herein, the “Variable Funding Note Collateral Value” shall be $0.00 in respect of any Receivable that:

(i) is not an Eligible Receivable; or

(ii) the Receivables Balance of such Receivable:

(A) when added to the aggregate Receivables Balance of all Receivables relating to the related Securitization Trust, causes the related UPB Ratio to exceed [***]; or

(B) when added to the aggregate Receivables Balance already outstanding with respect to the related Mortgage Loan or REO property, causes the related Market Value Ratio to exceed (i) with respect to a Non-Backstopped Receivable, [***] or (ii) with respect to any Receivable other than a Non-Backstopped Receivable, [***]; or

(C) with respect to a Non-Backstopped Receivable, when added to the aggregate Receivables Balance already outstanding with respect to the related Mortgage Loan, causes the aggregate Receivables Balance thereof to exceed the product of (a) [***] and (b)

2

*** Note: Confidential treatment has been requested with respect to the information contained within the [***] marking. Such portions have been omitted from this filing and have been filed separately with the Securities and Exchange Commission.

the aggregate Receivables Balance attributable to Delinquency Advances outstanding with respect to such Mortgage Loan; or

(D) [reserved]; or

(E) with respect to a Sublimit Receivable, when added to the aggregate Receivables Balance already outstanding with respect to Sublimit Receivables, causes the aggregate Receivables Balance with respect to Sublimit Receivables to exceed the lesser of (i) [***] million and (ii) [***] of the Note Principal Balance; or

(F) with respect to any Receivable that is attributable to a Servicing Contract and, with respect to any Subserviced Securitization Trust, Related Servicing Contract for which the underlying Mortgage Loans (i) have an unpaid principal balance less than [***], or (ii) contain fewer than 50 mortgage, as of the end of the most recently concluded calendar month (any such agreement, a “Low Threshold Servicing Contract”), when added to the aggregate Receivables Balance of all Receivables outstanding with respect to Low Threshold Servicing Contracts, causes the aggregate Receivables Balance attributable to Low Threshold Servicing Contracts to exceed [***] of the Receivables Balance of the Aggregate Receivables; or

(G) with respect to any Receivable that is attributable to a Servicing Contract or, with respect to any Subserviced Securitization Trust, Related Servicing Contract for which the underlying Mortgage Loans have (i) an unpaid principal balance greater than or equal to [***] but less than [***], or (ii) contain at least 50 but less than 125 mortgage loans, as of the end of the most recently concluded calendar month (a “Middle Threshold Servicing Contract”), when added to the aggregate Receivables Balance of all Receivables outstanding with respect to Middle Threshold Servicing Contracts, does not cause the aggregate Receivables Balance attributable to Middle Threshold Servicing Contracts to exceed [***] of the Receivables Balance of the Aggregate Receivables; or

(H) when added to the aggregate Receivables Balance outstanding with respect to the related Servicing Contract, does not cause the aggregate Receivables Balance attributable to such Servicing Contract to exceed [***] of the Receivables Balance of the Aggregate Receivables.”

““Variable Funding Note Discount Factor”:

A. As of the date hereof and ending upon the earlier to occur of (a) March 31, 2013 and (b) the issuance of term notes with respect to a servicing advance facility collateralized by Collateral (among other collateral) subject to the Lien of this Indenture (including but not limited to Eligible Receivables) with a funded amount under the related term note securitization documents equal to at least $400,000,000 (a “Term Note Securitization”):

I.  With respect to any Receivables other than Sublimit Receivables, (A) with respect to Pool-Level Advances, [***], (B) with respect to Loan-Level Delinquency Advances (Non-Judicial States), [***], (C) with respect to Loan-Level Delinquency Advances (Judicial States),

3

*** Note: Confidential treatment has been requested with respect to the information contained within the [***] marking. Such portions have been omitted from this filing and have been filed separately with the Securities and Exchange Commission.

[***], (D) with respect to Escrow Advances (Non-Judicial States), [***],(E) with respect to Escrow Advances (Judicial States), [***], (F) with respect to Corporate Advances (Non-Judicial States), [***], (G) with respect to Corporate Advances (Judicial States), [***], (H) with respect to any Legacy Deferred Servicing Fees (Non-Judicial States), [***], and (I) with respect to any Legacy Deferred Servicing Fees (Judicial States), [***],

II.  With respect to any Non-FIFO Receivables, (A) with respect to Pool-Level Advances, [***], (B) with respect to Loan-Level Delinquency Advances (Non-Judicial States), [***], (C) with respect to Loan-Level Delinquency Advances (Judicial States), [***], (D) with respect to Escrow Advances (Non-Judicial States), [***], (E) with respect to Escrow Advances (Judicial States), [***], (F) with respect to Corporate Advances (Non-Judicial States), [***], (G) with respect to Corporate Advances (Judicial States), [***], (H) with respect to any Legacy Deferred Servicing Fees (Non-Judicial States), [***], and (I) with respect to any Legacy Deferred Servicing Fees (Judicial States), [***].

III.  With respect to any Non-Backstopped Receivables, (A) with respect to Pool-Level Advances, [***], (B) with respect to Loan-Level Delinquency Advances (Non-Judicial States), [***], (C) with respect to Loan-Level Delinquency Advances (Judicial States), [***], (D) with respect to Escrow Advances (Non-Judicial States), [***], (E) with respect to Escrow Advances (Judicial States), [***], (F) with respect to Corporate Advances (Non-Judicial States), [***], (G) with respect to Corporate Advances (Judicial States), [***], (H) with respect to any Legacy Deferred Servicing Fees (Non-Judicial States), [***], (I) with respect to any Legacy Deferred Servicing Fees (Judicial States), [***].

B.  Following the occurrence of a Term Note Securitization on any date prior to March 31, 2013, with respect to any Receivables, the advance rates shall be agreed upon by the Agent in its sole and absolute discretion.

C. If a Term Note Securitization shall not have occurred on or prior to March 31, 2013: 

I.  With respect to any Receivables other than Sublimit Receivables, (A) with respect to Pool-Level Advances, [***], (B) with respect to Loan-Level Delinquency Advances (Non-Judicial States), [***], (C) with respect to Loan-Level Delinquency Advances (Judicial States), [***], (D) with respect to Escrow Advances (Non-Judicial States), [***], (E) with respect to Escrow Advances (Judicial States), [***], (F) with respect to Corporate Advances (Non-Judicial States), [***], (G) with respect to Corporate Advances (Judicial States), [***], (H) with respect to any Legacy Deferred Servicing Fees (Non-Judicial States), [***], and (I) with respect to any Legacy Deferred Servicing Fees (Judicial States), [***].

II.  With respect to any Non-FIFO Receivables, (A) with respect to Pool-Level Advances, [***], (B) with respect to Loan-Level Delinquency Advances (Non-Judicial States), [***], (C) with respect to Loan-Level Delinquency Advances (Judicial States), [***], (D) with respect to Escrow Advances (Non-Judicial States), [***], (E) with respect to Escrow Advances (Judicial States), 64%, (F) with respect to Corporate Advances (Non-Judicial States), [***], (G) with respect to Corporate Advances (Judicial States), [***], (H) with respect to any Legacy Deferred Servicing

4

*** Note: Confidential treatment has been requested with respect to the information contained within the [***] marking. Such portions have been omitted from this filing and have been filed separately with the Securities and Exchange Commission.

Fees (Non-Judicial States), [***], and (I) with respect to any Legacy Deferred Servicing Fees (Judicial States), [***].

III.  With respect to any Non-Backstopped Receivables, (A) with respect to Pool-Level Advances, [***], (B) with respect to Loan-Level Delinquency Advances (Non-Judicial States), [***], (C) with respect to Loan-Level Delinquency Advances (Judicial States), [***], (D) with respect to Escrow Advances (Non-Judicial States), [***], (E) with respect to Escrow Advances (Judicial States), [***], (F) with respect to Corporate Advances (Non-Judicial States), [***], (G) with respect to Corporate Advances (Judicial States), [***], (H) with respect to any Legacy Deferred Servicing Fees (Non-Judicial States), [***], (I) with respect to any Legacy Deferred Servicing Fees (Judicial States), [***].

If, on any Funding Date, a Discount Factor Reduction Event shall have occurred and be continuing with respect to the related Securitization Trust, each percentage set forth in this definition with respect to any such Receivables immediately above shall be decreased by an amount equal to the product of (A) the applicable Discount Factor Reduction Percentage and (B) the applicable Discount Factor Proportional Weighting Ratio.”

(b) Section 1.01 of the Indenture is hereby amended by deleting the following definitions:

““Legacy RALI Receivable”: Any Initial Receivable with respect to a RALI Securitization Trust.”

““RALI Receivable”: Any Receivable (other than a Legacy RALI Receivable) generated from an Advance made with respect to a RALI Securitization Trust.”

““RALI Securitization Trust”: Any of RALI 2006-QO3, RALI 2006-QO4, RALI 2006-QO6, RALI 2006-QO8 or RALI 2007-QH3.”

5

*** Note: Confidential treatment has been requested with respect to the information contained within the [***] marking. Such portions have been omitted from this filing and have been filed separately with the Securities and Exchange Commission.

Section 3.Omnibus Change. The parties hereto agree that, with respect to each Transaction Document (as defined in the Indenture), any and all references to “Legacy RALI Receivable,” “RALI Receivable,” and “RALI Securitization Trust” in the terms and provisions of such Transaction Document shall be of no further force and effect.

Section 4.Effective Date. This Amendment shall become effective as of November 30, 2012 (the “Effective Date”) upon the execution and delivery of this Amendment by all parties hereto.

Section 5.Waiver. Nationstar and Credit Suisse AG, Cayman Islands Branch and Alpine Securitization Corp. as the Required Noteholders (who are also the Holders of 100% of the Notes) hereby waive and instruct the Indenture Trustee to waive the following: (i) Section 8.02 of the Indenture requiring the delivery of a Tax Opinion with respect to this Amendment; and (ii) Section 8.04 of the Indenture requiring the delivery of an Opinion of Counsel stating that the execution of this Amendment is authorized or permitted by the Indenture.

Section 6.Expenses.

The Issuer and Seller hereby agree that in addition to any costs otherwise required to be paid pursuant to the Transaction Documents, the Issuer and Seller shall pay the reasonable and documented legal fees and out-of-pocket expenses of legal counsel to the Agent, the Noteholders, the Owner Trustee and the Indenture Trustee incurred in connection with the consummation of this Amendment and all other documents executed or delivered in connection therewith.

Section 7. Ratification of the Indenture.

The parties hereto ratify all terms of the existing Indenture other than those amended hereby, and ratify those provisions as amended hereby.

Section 8. Successors and Assigns.

This Amendment shall be binding upon the parties hereto and their respective successors and assigns.

Section 9. Governing Law.

THIS AMENDMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE SUBSTANTIVE LAWS OF THE STATE OF NEW YORK (WITHOUT REGARD TO CHOICE OF LAW PRINCIPLES EXCEPT AS PROVIDED IN SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW) AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

6

*** Note: Confidential treatment has been requested with respect to the information contained within the [***] marking. Such portions have been omitted from this filing and have been filed separately with the Securities and Exchange Commission.

Section 9. Counterparts.

The Amendment may be executed in any number of counterparts, each of which when so executed shall be deemed to be an original, but all of such counterparts shall together constitute but one and the same instrument.

Section 10. Entire Agreement.

The Indenture, as amended by this Amendment, constitutes the entire agreement among the parties hereto with respect to the subject matter hereof, and fully supersedes any prior or contemporaneous agreements relating to such subject matter.

7

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed by their respective signatories thereunto duly authorized and their respective signatures duly attested all as of the day and year first above written.

NATIONSTAR ADVANCE FUNDING TRUST 2012-C, as Issuer

By: Nationstar Mortgage LLC, as its Administrator

By: /s/ Amar Patel

Name:Amar Patel

Title: Executive Vice President

WELLS FARGO BANK, N. A.,

as Indenture Trustee and not in its individual capacity

By: /s/ Mark DeFabio

Name: Mark DeFabio

Title: Vice President

Consented and Agreed to as of the date first above written:

CREDIT SUISSE AG, NEW YORK BRANCH

as Agent

By: /s/ Jason Ruchelsman

Name: Jason Ruchelsman

Title:Vice President

By: /s/ Jason Muncy

Name:Jason Muncy

Title:Vice President

CREDIT SUISSE AG, CAYMAN ISLANDS BRANCH

as Committed Purchaser

By: /s/ Jason Ruchelsman

Name:Jason Ruchelsman

Title: Authorized Signatory

By: Jason D. Muncy

Name:Jason D. Muncy

Title:Authorized Signatory

ALPINE SECURITIZATION CORP.

as Conduit Purchaser

By: Credit Suisse AG, New York Branch,

as its attorney-in-fact

By: /s/ Jason Ruchelsman

Name:Jason Ruchelsman

Title: Vice President

By: /s/ Jason Muncy

Name:Jason Muncy

Title: Vice President

NATIONSTAR MORTGAGE LLC

as Seller

By: /s/ Amar Patel

Name: Amar Patel

Title: Executive Vice President

EX-4.4

Exhibit 4.4

CONFIDENTIAL TREATMENT REQUESTED

===================================================================

NATIONSTAR ADVANCE FUNDING TRUST 2012-C,

as Issuer

and

WELLS FARGO BANK, N. A.,

as Indenture Trustee

__________

AMENDMENT NO. 5

Dated as of March 29, 2013

to the

INDENTURE

Dated as of June 26, 2012

__________

NATIONSTAR ADVANCE FUNDING TRUST 2012-C

Servicer Advance Receivables Backed Notes, Series 2012-C

===================================================================

This Amendment No. 5, dated as of March 29, 2013 (this “Amendment”), to the Indenture, dated as of June 26, 2012 (as amended, restated or otherwise modified as of the date hereof, the “Indenture”), is made by and between NATIONSTAR ADVANCE FUNDING TRUST 2012-C, a Delaware statutory trust, as issuer (the “Issuer”), and WELLS FARGO BANK, N.A., a national banking association, not in its individual capacity, but solely as indenture trustee (the “Indenture Trustee”).

WHEREAS, pursuant to Section 8.02 of the Indenture, with the consent of the Required Noteholders, Nationstar (for so long as it holds any interest in the trust), the Issuer, the Indenture Trustee, and each Hedge Provider may enter into one or more amendments to the Indenture, for the purpose of adding any provisions thereto, changing in any manner or eliminating any of the provisions thereof, or modifying in any manner the rights of the Noteholders thereunder;

WHEREAS, the parties hereto have agreed to amend the Indenture in accordance with the provisions of Section 8.02 of the Indenture and the terms of this Amendment;

WHEREAS, as of the date hereof, there are no Hedge Providers;

WHEREAS, Credit Suisse AG, Cayman Islands Branch, and Alpine Securitization Corp. hold at least 66 2/3% in aggregate of the Commitments set forth in the Note Purchase Agreement and are the Holders of 100% of the Notes; and

NOW, THEREFORE, pursuant to the provisions of the Indenture concerning amendment thereof, and in consideration of the amendments, agreements and other provisions herein contained and of certain other good and valuable consideration the receipt and sufficiency of which is hereby acknowledged by the parties hereto, it is hereby agreed between the parties hereto, as follows:

Section 1. Defined Terms.

As used in this Amendment, capitalized terms have the meanings assigned thereto in the Indenture.

Section 2. Amendments to the Indenture.

Section 1.01 of the Indenture is hereby amended by the addition of the following definitions and the deletion of, in their entirety, the existing definitions of the same terms:

““Variable Funding Note Discount Factor”:

A. As of the date hereof and ending upon the earlier to occur of (a) May 15, 2013 and (b) the issuance of term notes with respect to a servicing advance facility collateralized by Collateral (among other collateral) subject to the Lien of this Indenture (including but not limited to Eligible Receivables) with a funded amount under the related term note securitization documents equal to at least $400,000,000 (a “Term Note Securitization”):

I.  With respect to any Receivables other than Sublimit Receivables, (A) with respect to Pool-Level Advances, [***], (B) with respect to Loan-Level Delinquency Advances (Non-Judicial States), [***], (C) with respect to Loan-Level Delinquency Advances (Judicial States),

[***], (D) with respect to Escrow Advances (Non-Judicial States), [***], (E) with respect to Escrow Advances (Judicial States), [***], (F) with respect to Corporate Advances (Non-Judicial States), [***], (G) with respect to Corporate Advances (Judicial States), [***], (H) with respect to any Legacy Deferred Servicing Fees (Non-Judicial States), [***], and (I) with respect to any Legacy Deferred Servicing Fees (Judicial States), [***].

II.  With respect to any Non-FIFO Receivables, (A) with respect to Pool-Level Advances, [***], (B) with respect to Loan-Level Delinquency Advances (Non-Judicial States), [***], (C) with respect to Loan-Level Delinquency Advances (Judicial States), [***], (D) with respect to Escrow Advances (Non-Judicial States), [***], (E) with respect to Escrow Advances (Judicial States), [***], (F) with respect to Corporate Advances (Non-Judicial States), [***], (G) with respect to Corporate Advances (Judicial States), [***], (H) with respect to any Legacy Deferred Servicing Fees (Non-Judicial States), [***], and (I) with respect to any Legacy Deferred Servicing Fees (Judicial States), [***].

III.  With respect to any Non-Backstopped Receivables, (A) with respect to Pool-Level Advances, [***], (B) with respect to Loan-Level Delinquency Advances (Non-Judicial States), [***], (C) with respect to Loan-Level Delinquency Advances (Judicial States), [***], (D) with respect to Escrow Advances (Non-Judicial States), [***], (E) with respect to Escrow Advances (Judicial States), [***], (F) with respect to Corporate Advances (Non-Judicial States), [***], (G) with respect to Corporate Advances (Judicial States), [***], (H) with respect to any Legacy Deferred Servicing Fees (Non-Judicial States), [***], (I) with respect to any Legacy Deferred Servicing Fees (Judicial States), [***].

B.  Following the occurrence of a Term Note Securitization on any date prior to May 15, 2013, with respect to any Receivables, the advance rates shall be agreed upon by the Agent in its sole and absolute discretion.

C. If a Term Note Securitization shall not have occurred on or prior to May 15, 2013: 

I.  With respect to any Receivables other than Sublimit Receivables, (A) with respect to Pool-Level Advances, [***], (B) with respect to Loan-Level Delinquency Advances (Non-Judicial States), [***], (C) with respect to Loan-Level Delinquency Advances (Judicial States), [***], (D) with respect to Escrow Advances (Non-Judicial States), [***], (E) with respect to Escrow Advances (Judicial States), [***], (F) with respect to Corporate Advances (Non-Judicial States), [***], (G) with respect to Corporate Advances (Judicial States), [***], (H) with respect to any Legacy Deferred Servicing Fees (Non-Judicial States), [***], and (I) with respect to any Legacy Deferred Servicing Fees (Judicial States), [***].

II.  With respect to any Non-FIFO Receivables, (A) with respect to Pool-Level Advances, [***], (B) with respect to Loan-Level Delinquency Advances (Non-Judicial States), [***], (C) with respect to Loan-Level Delinquency Advances (Judicial States), [***], (D) with respect to Escrow Advances (Non-Judicial States), [***], (E) with respect to Escrow Advances (Judicial States), [***], (F) with respect to Corporate Advances (Non-Judicial States), [***], (G) with respect to Corporate Advances (Judicial States), [***], (H) with respect to any Legacy Deferred

2

*** Note: Confidential treatment has been requested with respect to the information contained within the [***] marking. Such portions have been omitted from this filing and have been filed separately with the Securities and Exchange Commission.

Servicing Fees (Non-Judicial States), [***], and (I) with respect to any Legacy Deferred Servicing Fees (Judicial States), [***].

III.  With respect to any Non-Backstopped Receivables, (A) with respect to Pool-Level Advances, [***], (B) with respect to Loan-Level Delinquency Advances (Non-Judicial States), [***], (C) with respect to Loan-Level Delinquency Advances (Judicial States), [***], (D) with respect to Escrow Advances (Non-Judicial States),[***], (E) with respect to Escrow Advances (Judicial States), [***], (F) with respect to Corporate Advances (Non-Judicial States), [***], (G) with respect to Corporate Advances (Judicial States), [***], (H) with respect to any Legacy Deferred Servicing Fees (Non-Judicial States), [***], (I) with respect to any Legacy Deferred Servicing Fees (Judicial States), [***].

If, on any Funding Date, a Discount Factor Reduction Event shall have occurred and be continuing with respect to the related Securitization Trust, each percentage set forth in this definition with respect to any such Receivables immediately above shall be decreased by an amount equal to the product of (A) the applicable Discount Factor Reduction Percentage and (B) the applicable Discount Factor Proportional Weighting Ratio."

Section 3.Effective Date. This Amendment shall become effective as of March 29, 2013 (the “Effective Date”) upon the execution and delivery of this Amendment by all parties hereto.

Section 4.Waiver. Nationstar and Credit Suisse AG, Cayman Islands Branch and Alpine Securitization Corp. as the Required Noteholders (who are also the Holders of 100% of the Notes) hereby waive and instruct the Indenture Trustee to waive the following: (i) Section 8.02 of the Indenture requiring the delivery of a Tax Opinion with respect to this Amendment; and (ii) Section 8.04 of the Indenture requiring the delivery of an Opinion of Counsel stating that the execution of this Amendment is authorized or permitted by the Indenture.

Section 5.Expenses.

The Issuer and Seller hereby agree that in addition to any costs otherwise required to be paid pursuant to the Transaction Documents, the Issuer and Seller shall pay the reasonable and documented legal fees and out-of-pocket expenses of legal counsel to the Agent, the Noteholders, the Owner Trustee and the Indenture Trustee incurred in connection with the consummation of this Amendment and all other documents executed or delivered in connection therewith.

Section 6.Ratification of the Indenture.

The parties hereto ratify all terms of the existing Indenture other than those amended hereby, and ratify those provisions as amended hereby.

3

*** Note: Confidential treatment has been requested with respect to the information contained within the [***] marking. Such portions have been omitted from this filing and have been filed separately with the Securities and Exchange Commission.

Section 7. Successors and Assigns.

This Amendment shall be binding upon the parties hereto and their respective successors and assigns.

Section 8. Governing Law.

THIS AMENDMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE SUBSTANTIVE LAWS OF THE STATE OF NEW YORK (WITHOUT REGARD TO CHOICE OF LAW PRINCIPLES EXCEPT AS PROVIDED IN SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW) AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

Section 9. Counterparts.

The Amendment may be executed in any number of counterparts, each of which when so executed shall be deemed to be an original, but all of such counterparts shall together constitute but one and the same instrument.

Section 10. Entire Agreement.

The Indenture, as amended by this Amendment, constitutes the entire agreement among the parties hereto with respect to the subject matter hereof, and fully supersedes any prior or contemporaneous agreements relating to such subject matter.

4

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed by their respective signatories thereunto duly authorized and their respective signatures duly attested all as of the day and year first above written.

NATIONSTAR ADVANCE FUNDING TRUST 2012-C, as Issuer

By: Nationstar Mortgage LLC, as its Administrator

By: /s/ Amar Patel

Name:Amar Patel

Title: Executive Vice President

WELLS FARGO BANK, N. A.,

as Indenture Trustee and not in its individual capacity

By: /s/ Mark DeFabio

Name: Mark DeFabio

Title: Vice President

Consented and Agreed to as of the date first above written:

CREDIT SUISSE AG, NEW YORK BRANCH

as Agent

By: Michelangelo Raimondi

Name: Michelangelo Raimondi

Title:Associate

By: /s/ Jason Muncy

Name:Jason Muncy

Title:Vice President

CREDIT SUISSE AG, CAYMAN ISLANDS BRANCH

as Committed Purchaser

By: /s/ Michelangelo Raimondi

Name:Michelangelo Raimondi

Title: Authorized Signatory

By: /s/ Jason D. Muncy

Name:Jason D. Muncy

Title:Authorized Signatory

ALPINE SECURITIZATION CORP.

as Conduit Purchaser

By: Credit Suisse AG, New York Branch,

as its attorney-in-fact

By: /s/ Michelangelo Raimondi

Name:Michelangelo Raimondi

Title: Associate

By: /s/ Jason Muncy

Name:Jason Muncy

Title: Vice President

NATIONSTAR MORTGAGE LLC

as Seller

By: /s/ Amar Patel

Name: Amar Patel

Title: Executive Vice President

EX-31.1

Exhibit 31.1

Certification Pursuant to Rules 13a-14(a) and 15d-14(a) as Adopted Pursuant to Section

302 of the Sarbanes-Oxley Act of 2002

I, Jay Bray, certify that:

1. I have reviewed this quarterly report on Form 10-Q for the quarter ended March 31, 2013 of Nationstar Mortgage Holdings Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

c. Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:	May 7, 2013
/s/ Jay Bray
Jay Bray
Chief Executive Officer

EX-31.2

Exhibit 31.2

Certification Pursuant to Rules 13a-14(a) and 15d-14(a) as Adopted Pursuant to Section

302 of the Sarbanes-Oxley Act of 2002

I, David C. Hisey, certify that:

1. I have reviewed this quarterly report on Form 10-Q for the quarter ended March 31, 2013 of Nationstar Mortgage Holdings Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

c. Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:	May 7, 2013
/s/ David C. Hisey
David C. Hisey
Chief Financial Officer

EX-32.1

Exhibit 32.1

Certification Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the

Sarbanes-Oxley Act of 2002

In connection with the quarterly report of Nationstar Mortgage Holdings Inc. (the “Company”) on Form 10-Q for the quarter ended March 31, 2013, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Jay Bray, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, to my knowledge, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date:	May 7, 2013
/s/ Jay Bray
Jay Bray
Chief Executive Officer

EX-32.2

Exhibit 32.2

Certification Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the

Sarbanes-Oxley Act of 2002

In connection with the quarterly report of Nationstar Mortgage Holdings Inc. (the “Company”) on Form 10-Q for the quarter ended March 31, 2013, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, David C. Hisey, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, to my knowledge, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date:	May 7, 2013
/s/ David C. Hisey
David C. Hisey
Chief Financial Officer

XML

General and Administrative Expenses (Tables)

3 Months Ended

Mar. 31, 2013

General and Administrative Expense [Abstract]

General and Administrative Expenses

General and administrative expenses consist of the following for the dates indicated (in thousands):

	For the three months ended
	March 31, 2013		March 31, 2012
Servicing	$	47,772	$	11,079
Outsourcing	19,517		2,056
Legal and professional fees	17,333		5,102
Loan processing charges	11,564		1,065
Depreciation and amortization	3,901		1,531
Postage	3,850		1,314
Telecommunications and technology	3,304		1,251
Travel	3,229		821
Equipment	3,167		1,320
Dues and fees	2,870		918
Advertising	2,112		742
Stationary and office supplies	1,558		994
Other	5,465		919
Total general and administrative expenses	$	125,642	$	29,112

XML

Mortgage Loans Held for Sale and Investment - Reconciliation to Cash Flow (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Loans Receivable Held-for-sale, Net, Reconciliation to Cash Flow [Roll Forward]
Mortgage loans held for sale - beginning balance	$ 1,480,537	$ 458,626
Mortgage loans originated and purchased, net of fees	3,781,116	1,189,942
Cost of loans sold, net of fees	(3,549,535)	(1,270,007)
Loans Receivable Held-for-Sale, Reconciliation to Cash Flow, Transfer from Held-for-sale to Held-for-investment due to Bankruptcy and Foreclosures	8,409
Transfer of mortgage loans held for sale to held for investment		0
Mortgage loans held for sale - ending balance	$ 1,703,709	$ 378,561

XML

Variable Interest Entities and Securitizations - Securitization Trusts (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012	Dec. 31, 2012
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items]
Total mortgage servicing rights at fair value	$ 1,289,643		$ 635,860
Variable Interest Entity, Not Primary Beneficiary
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items]
Total collateral balances	4,031,005		4,134,513
Total certificate balances	4,039,553		4,136,316
Total mortgage servicing rights at fair value	32,922		30,940
Principal Amount of Loans 60 Days or More Past Due	1,179,325		936,006
Credit Losses	$ 64,858	$ 79,751

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Indebtedness - Notes Payable Summary (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2013	Dec. 31, 2012
Debt Instrument
Outstanding	$ 3,409,886	$ 3,601,586
Collateral Pledged	3,824,539	4,121,154
Servicing Segment | Notes Payable, Other | MBS Advance Financing Facility
Debt Instrument
Outstanding	174,965	185,817
Collateral Pledged	192,278	206,622
Servicing Segment | Notes Payable, Other | Securities Repurchase Facility (2011)
Debt Instrument
Outstanding	11,774	11,774
Collateral Pledged	55,603	55,603
Servicing Segment | Notes Payable, Other | MSR Note
Debt Instrument
Outstanding	3,239	4,627
Collateral Pledged	11,299	12,328
Servicing Segment | Notes Payable, Other | MBS Advance Financing Facility 2012 [Member]
Debt Instrument
Outstanding	60,012	0
Collateral Pledged	68,992	0
Servicing Segment | Notes Payable to Banks | ABS Advance Financing Facility (2010)
Debt Instrument
Outstanding	194,217	194,833
Collateral Pledged	237,865	233,208
Servicing Segment | Notes Payable to Banks | Agency Advance Financing Facility (2011-1)
Debt Instrument
Outstanding	575,035	476,091
Collateral Pledged	608,663	549,284
Servicing Segment | Notes Payable to Banks | AW Agency Advance Financing Facility (2012)
Debt Instrument
Outstanding	0	100,000
Collateral Pledged	0	135,343
Servicing Segment | Notes Payable to Banks | C ABS Advance Financing Facility (2012)
Debt Instrument
Outstanding	574,437	657,027
Collateral Pledged	653,676	742,238
Servicing Segment | Notes Payable to Banks | R ABS Advance Financing Facility (2012)
Debt Instrument
Outstanding	326,821	374,739
Collateral Pledged	376,374	428,758
Servicing Segment | Notes Payable to Banks | W ABS Advance Financing Facility (2012)
Debt Instrument
Outstanding	424,503	492,235
Collateral Pledged	497,745	566,332
Servicing Segment | Notes Payable to Banks | Reverse Participations Financing Facility
Debt Instrument
Outstanding	104,799	65,943
Collateral Pledged	127,424	76,455
Originations Segment | Notes Payable, Other | Warehouse Facility $300 Million
Debt Instrument
Outstanding	128,900
Collateral Pledged	133,081
Originations Segment | Notes Payable, Other | Warehouse Facility $150 Million
Debt Instrument
Outstanding		224,790
Collateral Pledged		241,867
Originations Segment | Notes Payable, Other | ASAP Plus Facility
Debt Instrument
Outstanding	57,329	124,572
Collateral Pledged	55,704	124,596
Originations Segment | Notes Payable to Banks | Warehouse Facility $750 Million [Member]
Debt Instrument
Outstanding	495,751
Collateral Pledged	517,002
Originations Segment | Notes Payable to Banks | Warehouse Facility $375 Million
Debt Instrument
Outstanding		245,287
Collateral Pledged		285,281
Originations Segment | Notes Payable to Banks | Warehouse Facility $750 Million (2011) [Member]
Debt Instrument
Outstanding	197,257
Originations Segment | Notes Payable to Banks | Warehouse Facility $250 Million (2011)
Debt Instrument
Outstanding		356,104
Collateral Pledged	204,617	371,836
Originations Segment | Notes Payable to Banks | Warehouse Facility $300 Million (2009)
Debt Instrument
Outstanding	80,847
Collateral Pledged	84,216
Originations Segment | Notes Payable to Banks | Warehouse Facility $100 Million (2009)
Debt Instrument
Outstanding		87,747
Collateral Pledged		$ 91,403

XML

Mortgage Loans Held for Sale and Investment - Mortgage Loans Held for Investment (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total mortgage loans held for investment, subject to nonrecourse debt - legacy assets, net	$ 235,915	$ 238,907
Mortgage Loans Held for Investment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Mortgage loans held for investment, subject to nonrecourse debt - legacy assets, net - unpaid principal balance	348,822	354,154
Transfer discount - accretable	(18,889)	(19,749)	(22,392)
Transfer discount - non-accretable	(88,812)	(91,108)
Allowance for loan losses	(5,206)	(4,390)	(5,824)
Total mortgage loans held for investment, subject to nonrecourse debt - legacy assets, net	$ 235,915	$ 238,907

XML

Indebtedness Indebtedness - Fair Value Sensitivity Analysis (Details) (USD $)
In Thousands, unless otherwise specified

3 Months Ended

Mar. 31, 2013

Mar. 31, 2013

Excess Spread Financing

Dec. 31, 2012

Excess Spread Financing

Mar. 31, 2013

100 Basis Points

Excess Spread Financing

Dec. 31, 2012

100 Basis Points

Excess Spread Financing

Mar. 31, 2013

Two Hundred Basis Points [Member]

Excess Spread Financing

Dec. 31, 2012

Two Hundred Basis Points [Member]

Excess Spread Financing

Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items]

Schedule of Sensitivity Analysis of Fair Value, Transferor's Interests in Transferred Financial Assets [Table Text Block]

The following table shows the hypothetical effect on the fair value of the MSRs using various unfavorable variations of the expected levels of certain key assumptions used in valuing these assets at March 31, 2013 and December 31, 2012 (in thousands):

	Discount Rate						Total Prepayment Speeds						Credit Losses
	100 bps Adverse Change			200 bps Adverse Change			10% Adverse Change			20% Adverse Change			10% Adverse Change			20% Adverse Change
March 31, 2013
Mortgage servicing rights	$	(30,092	)	$	(63,907	)	$	(96,409	)	$	(189,467	)	$	(95,440	)	$	(192,032	)
December 31, 2012
Mortgage servicing rights	$	(17,060	)	$	(34,419	)	$	(66,037	)	$	(124,995	)	$	(77,072	)	$	(157,433	)

Sensitivity Analysis of Fair Value, Transferor's Interests in Transferred Financial Assets, Impact of Other than 10 or 20 Percent Adverse Change in Discount Rate

$ 16,647

$ 7,978

$ 31,505

$ 16,404

Sensitivity Analysis of Fair Value, Transferor's Interests in Transferred Financial Assets, Impact of 10 Percent Adverse Change in Prepayment Speed

43,956

10,654

Sensitivity Analysis of Fair Value, Transferor's Interests in Transferred Financial Assets, Impact of 20 Percent Adverse Change in Prepayment Speed

63,970

22,240

Sensitivity Analysis of Fair Value, Transferor's Interests in Transferred Financial Assets, Impact of 10 Percent Adverse Change in Expected Credit Losses

9,144

5,538

Sensitivity Analysis of Fair Value, Transferor's Interests in Transferred Financial Assets, Impact of 20 Percent Adverse Change in Expected Credit Losses

$ 13,937

$ 11,075

XML

Nature of Business, Basis of Presentation and Material Transaction Nature of Business, Basis of Presentation and Material Transaction (Details) (USD $)	0 Months Ended
	Feb. 24, 2012
Schedule of Capitalization, Equity [Line Items]
Number of Direct Wholly-Owned Subsidiaries	2
Common Stock
Schedule of Capitalization, Equity [Line Items]
Share Price	$ 14.00
Stock Issued During Period, Shares, New Issues	19,166,667

XML

Mortgage Loans Held for Sale and Investment (Tables)

3 Months Ended

Mar. 31, 2013

Mortgage Loans Held for Sale and Investment [Abstract]

Schedule of Mortgage Loans Held-for-Sale

Mortgage loans held for sale consist of the following (in thousands):

	March 31, 2013		December 31, 2012
Mortgage loans held for sale – unpaid principal balance	$	1,646,387	$	1,426,182
Mark-to-market adjustment	57,322		54,355
Total mortgage loans held for sale	$	1,703,709	$	1,480,537

Reconciliation of Mortgage Loans Held-for-Sale to Cash Flow

A reconciliation of the changes in mortgage loans held for sale to the amounts presented in the consolidated statements of cash flows for the dates indicated is presented in the following table (in thousands):

	For the three months ended
	March 31, 2013			March 31, 2012
Mortgage loans held for sale – beginning balance	$	1,480,537		$	458,626
Mortgage loans originated and purchased, net of fees	3,781,116			1,189,942
Proceeds on sale of and payments of mortgage loans held for sale	(3,549,535		)	(1,270,007		)
Transfer of mortgage loans held for sale to held for investment due to bankruptcy and pending foreclosures	(8,409		)	—
Mortgage loans held for sale – ending balance	$	1,703,709		$	378,561

Schedule of Loans Held for Investment

Mortgage loans held for investment, subject to nonrecourse debt—Legacy Assets, net as of the dates indicated include (in thousands):

	March 31, 2013			December 31, 2012
Mortgage loans held for investment, subject to nonrecourse debt - Legacy Assets, net – unpaid principal balance	$	348,822		$	354,154
Transfer discount
Accretable	(18,889		)	(19,749		)
Non-accretable	(88,812		)	(91,108		)
Allowance for loan losses	(5,206)			(4,390		)
Total mortgage loans held for investment, subject to nonrecourse debt - Legacy Assets, net	$	235,915		$	238,907

Changes in Accretable Yield on Mortgage Loans Held for Investment

The changes in accretable yield on loans transferred to mortgage loans held for investment, subject to nonrecourse debt- Legacy Assets were as follows (in thousands):

	Three months ended March 31, 2013			Year ended December 31, 2012
Accretable Yield
Balance at the beginning of the period	$	19,749		$	22,392
Additions	—			—
Accretion	(852		)	(3,548		)
Reclassifications from (to) nonaccretable discount	(8		)	905
Disposals	—			—
Balance at the end of the period	$	18,889		$	19,749

Allowance for Loan Losses

The changes in the allowance for loan losses on mortgage loans held for investment, subject to nonrecourse debt-Legacy Assets, net were as follows (in thousands) for the dates indicated:

	Three months ended March 31, 2013
	Performing			Non-Performing			Total
Balance at the beginning of the period	$	771		$	3,619		$	4,390
Provision for loan losses	90			825			915
Charge-offs	(55		)	(44		)	(99		)
Balance at the end of the period	$	806		$	4,400		$	5,206
Ending balance – Collectively evaluated for impairment	$	266,854		$	81,968		$	348,822

	Year ended December 31, 2012
	Performing			Non-Performing			Total
Balance at the beginning of the period	$	1,641		$	4,183		$	5,824
Provision for loan losses	1,365			525			1,890
Recoveries on loans previously charged-off	—			—			—
Charge-offs	(2,235		)	(1,089		)	(3,324		)
Balance at the end of the period	$	771		$	3,619		$	4,390
Ending balance – Collectively evaluated for impairment	$	260,219		$	93,935		$	354,154

Mortgage Loans by Credit Quality Indicator

The following table provides the outstanding unpaid principal balance of Nationstar’s mortgage loans held for investment by credit quality indicators as of dates indicated. Performing loans refer to loans that are less than 90 days delinquent. Non-performing loans refer to loans that are greater than 90 days delinquent.

	March 31, 2013		December 31, 2012
	(in thousands)
Credit Quality by Delinquency Status
Performing	$	266,854	$	260,219
Non-Performing	81,968		93,935
Total	$	348,822	$	354,154
Credit Quality by Loan-to-Value Ratio
Less than 60	$	38,677	$	39,436
Less than 70 and more than 60	16,685		16,581
Less than 80 and more than 70	22,954		20,890
Less than 90 and more than 80	26,521		27,988
Less than 100 and more than 90	30,918		32,570
Greater than 100	213,067		216,689
Total	$	348,822	$	354,154

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General and Administrative Expenses (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
General and Administrative Expense [Abstract]
Servicing	$ 47,772	$ 11,079
Outsourcing	19,517	2,056
Professional Fees	17,333	5,102
Loan Processing Fee	11,564	1,065
Depreciation and amortization	3,901	1,531
Postage	3,850	1,314
Communications and Information Technology	3,304	1,251
Travel	3,229	821
Equipment	3,167	1,320
Dues and Fees Expense	2,870	918
Advertising Expense	2,112	742
Stationary and Office Supplies	1,558	994
Insurance, taxes, and other	5,465	919
Total general and administrative expense	$ 125,642	$ 29,112

XML

Indebtedness - Unsecured Senior Notes (Details) (USD $)												3 Months Ended
	Mar. 31, 2013	Dec. 31, 2012	Feb. 07, 2013 Notes Payable, Other Senior Notes 6 Point 5 Percent Due 2021 [Member]	Mar. 31, 2013 Unsecured Senior Notes	Mar. 31, 2013 Unsecured Senior Notes Unsecured Senior Notes 10.875% Due April 2015	Dec. 31, 2012 Unsecured Senior Notes Unsecured Senior Notes 10.875% Due April 2015	Mar. 31, 2013 Unsecured Senior Notes Unsecured Senior Notes 9.625% Due May 2019	Dec. 31, 2012 Unsecured Senior Notes Unsecured Senior Notes 9.625% Due May 2019	Mar. 31, 2013 Unsecured Senior Notes Unsecured Senior Notes Seven Point Eight Seven Five Percent Due Oct 202 [Member]	Dec. 31, 2012 Unsecured Senior Notes Unsecured Senior Notes Seven Point Eight Seven Five Percent Due Oct 202 [Member]	Mar. 31, 2013 Unsecured Senior Notes Unsecured Senior Notes Six Point Five Percent Due July 2021 [Member]	Mar. 31, 2013 March 2010 Issuance Period Unsecured Senior Notes Unsecured Senior Notes 10.875% Due April 2015	Mar. 31, 2013 Subsequent Event [Member] Notes Payable, Other Senior Notes 6 Point 5 Percent Due 2021 [Member]	Feb. 07, 2013 Subsequent Event [Member] Notes Payable, Other Senior Notes 6 Point 5 Percent Due 2021 [Member]
Debt Instrument
Unsecured Debt	$ 1,669,146,000	$ 1,062,635,000			$ 282,046,000	$ 281,676,000	$ 379,896,000	$ 380,232,000	$ 400,704,000	$ 400,727,000	$ 606,500,000
Principal amount				1,660,000,000	285,000,000,000		375,000,000,000		400,000,000,000		600,000,000,000		200,000,000.0	400,000,000.0
Debt issuance premium													6,500,000
Net cash proceeds												$ 606,500,000
Interest rate			6.50%		10.875%		9.625%		7.875%		6.50%

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Share-based Compensation - Restricted Stock Rollforward (Details) (USD $) In Millions, except Share data, unless otherwise specified	3 Months Ended		1 Months Ended	3 Months Ended	9 Months Ended
	Mar. 31, 2013	Sep. 30, 2012	Mar. 31, 2012 2012 Plan Restricted Stock	Mar. 31, 2013 2012 Plan Restricted Stock	Dec. 31, 2012 2012 Plan Restricted Stock	Mar. 31, 2013 2012 Plan Restricted Stock	Dec. 31, 2011 2012 Plan Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Amount to Recognize in Year Four		$ 0.2
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Restricted Stock outstanding at March 31, 2012						1,403,000	1,293,000
Restricted Stock outstanding at March 31, 2012, Remaining Contractual Term			1 year 11 months 7 days	3 years 0 months 0 days	2 years 1 month 0 days
Granted			1,277,000	288,000	69,000
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value			$ 14.00	$ 37.60	$ 29.95
Forfeited				(16,000)	(53,000)
Restricted Stock unvested and expected to vest				923,000
Treasury Stock, Shares, Acquired	(162,000)
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested and Payable, Number				0

XML

Mortgage Loans Held for Sale and Investment - Allowance (Details) (Mortgage Loans Held for Investment, USD $)	3 Months Ended		12 Months Ended
	Mar. 31, 2013	Mar. 31, 2012	Dec. 31, 2012
Financing Receivable, Allowance for Credit Losses
Transferred loans, provision for loan losses	$ 900,000	$ 800,000
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Balance at the beginning of the period	4,390,000	5,824,000	5,824,000
Provision for loan losses	915,000		1,890,000
Recoveries on loans previously charged off			0
Charge-offs	(99,000)		(3,324,000)
Balance at the end of the period	5,206,000		4,390,000
Ending balance - collectively evaluated for impairment	348,822,000		354,154,000
Performing
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Balance at the beginning of the period	771,000	1,641,000	1,641,000
Provision for loan losses	90,000		1,365,000
Recoveries on loans previously charged off			0
Charge-offs	(55,000)		(2,235,000)
Balance at the end of the period	806,000		771,000
Ending balance - collectively evaluated for impairment	266,854,000		260,219,000
Nonperforming
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Balance at the beginning of the period	3,619,000	4,183,000	4,183,000
Provision for loan losses	825,000		525,000
Recoveries on loans previously charged off			0
Charge-offs	(44,000)		(1,089,000)
Balance at the end of the period	4,400,000		3,619,000
Ending balance - collectively evaluated for impairment	$ 81,968,000		$ 93,935,000

XML

Indebtedness - Excess Spread Financing Debt (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2013	Dec. 31, 2012
Debt Instrument
Excess spread financing at fair value	$ 498,906	$ 288,089

XML

Fair Value Measurements - Fair Value by Balance Sheet Line Item (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2013	Dec. 31, 2012
Financial assets:
Derivative instruments	$ 182,589	$ 152,189
Financial liabilities:
Excess spread financing at fair value	498,906	288,089
Level 1
Financial assets:
Cash and cash equivalents	220,039	152,649
Restricted cash	360,467	393,190
Mortgages loans held for sale	0	0
Mortgage loans held for investment, subject to nonrecourse debt - Legacy assets	0	0
Reverse mortgage interests	0	0
Derivative instruments	0	0
Financial liabilities:
Notes payable	0	0
Unsecured senior notes	1,806,057	1,151,997
Derivative financial instruments	0	0
Nonrecourse debt - Legacy assets	0	0
Excess spread financing at fair value	0	0
Participating interest financing	0	0
Level 2
Financial assets:
Cash and cash equivalents	0	0
Restricted cash	0	0
Mortgages loans held for sale	1,703,709	1,480,537
Mortgage loans held for investment, subject to nonrecourse debt - Legacy assets	0	0
Reverse mortgage interests	1,034,509	805,650
Derivative instruments	182,589	152,189
Financial liabilities:
Notes payable	0	0
Unsecured senior notes	0	0
Derivative financial instruments	26,895	20,026
Nonrecourse debt - Legacy assets	0	0
Excess spread financing at fair value	0	0
Participating interest financing	747,998	593,741
Level 3
Financial assets:
Cash and cash equivalents	0	0
Restricted cash	0	0
Mortgages loans held for sale	0	0
Mortgage loans held for investment, subject to nonrecourse debt - Legacy assets	202,618	220,755
Reverse mortgage interests	0	0
Derivative instruments	0	0
Financial liabilities:
Notes payable	3,409,886	3,601,586
Unsecured senior notes	0	0
Derivative financial instruments	0	0
Nonrecourse debt - Legacy assets	100,066	102,492
Excess spread financing at fair value	498,906	288,089
Participating interest financing	0	0
Carrying Amount
Financial assets:
Cash and cash equivalents	220,039	152,649
Restricted cash	360,467	393,190
Mortgages loans held for sale	1,703,709	1,480,537
Mortgage loans held for investment, subject to nonrecourse debt - Legacy assets	235,915	238,907
Reverse mortgage interests	978,652	750,273
Derivative instruments	182,589	152,189
Financial liabilities:
Notes payable	3,409,886	3,601,586
Unsecured senior notes	1,669,146	1,062,635
Derivative financial instruments	26,895	20,026
Nonrecourse debt - Legacy assets	98,388	100,620
Excess spread financing at fair value	498,906	288,089
Participating interest financing	745,263	580,836
Fair Value, Measurements, Recurring | Level 1
Financial assets:
Mortgages loans held for sale	0	0
Fair Value, Measurements, Recurring | Level 2
Financial assets:
Mortgages loans held for sale	1,703,709	1,480,537
Fair Value, Measurements, Recurring | Level 3
Financial assets:
Mortgages loans held for sale	0	0
Fair Value, Measurements, Recurring | Estimate of Fair Value, Fair Value Disclosure [Member]
Financial assets:
Mortgages loans held for sale	1,703,709	1,480,537
Fair Value, Measurements, Recurring | Forward Contracts | Level 1
Financial assets:
Derivative instruments	0	0
Financial liabilities:
Derivative financial instruments	0
Fair Value, Measurements, Recurring | Forward Contracts | Level 2
Financial assets:
Derivative instruments	1,918	888
Financial liabilities:
Derivative financial instruments	20,306	11,974
Fair Value, Measurements, Recurring | Forward Contracts | Level 3
Financial assets:
Derivative instruments	0	0
Financial liabilities:
Derivative financial instruments	0
Fair Value, Measurements, Recurring | Forward Contracts | Estimate of Fair Value, Fair Value Disclosure [Member]
Financial assets:
Derivative instruments	1,918	888
Financial liabilities:
Derivative financial instruments	20,306	11,974
Fair Value, Measurements, Recurring | Loan Purchase Commitments [Member] | Level 1
Financial assets:
Derivative instruments	0	0
Financial liabilities:
Derivative financial instruments	0	0
Fair Value, Measurements, Recurring | Loan Purchase Commitments [Member] | Level 2
Financial assets:
Derivative instruments	497	1,253
Financial liabilities:
Derivative financial instruments	20	86
Fair Value, Measurements, Recurring | Loan Purchase Commitments [Member] | Level 3
Financial assets:
Derivative instruments	0	0
Financial liabilities:
Derivative financial instruments	0	0
Fair Value, Measurements, Recurring | Loan Purchase Commitments [Member] | Estimate of Fair Value, Fair Value Disclosure [Member]
Financial assets:
Derivative instruments	497	1,253
Financial liabilities:
Derivative financial instruments	$ 20	$ 86

XML

Income Taxes Income Tax Expense (Benefit) (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Current Federal Tax Expense (Benefit)	$ 21,851	$ 2,794
Current State and Local Tax Expense (Benefit)	2,681	351
Current Income Tax Expense (Benefit)	24,532	3,145
Deferred Federal Income Tax Expense (Benefit)	12,457	0
Deferred State and Local Income Tax Expense (Benefit)	1,388	0
Deferred Income Tax Expense (Benefit)	13,845	0
Income Tax Expense (Benefit)	$ 38,377	$ 3,145
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate	38.00%	5.90%

XML

Fair Value Measurements Fair Value Measurement - Fair Value Assumption (Details) (Excess Spread Financing)	3 Months Ended	12 Months Ended
	Mar. 31, 2013	Dec. 31, 2012
Assumption for Fair Value as of Balance Sheet Date of Assets or Liabilities that relate to Transferor's Continuing Involvement
Assumption for Fair Value of Assets or Liabilities that relate to Transferor's Continuing Involvement, Prepayment Speed	15.00%	14.00%
Assumption for Fair Value of Assets or Liabilities that relate to Transferor's Continuing Involvement, Weighted Average Life	4 years 2 months 0 days
Assumption for Fair Value of Assets or Liabilities that relate to Transferor's Continuing Involvement, Discount Rate	13.10%	15.00%
Minimum
Assumption for Fair Value as of Balance Sheet Date of Assets or Liabilities that relate to Transferor's Continuing Involvement
Assumption for Fair Value of Assets or Liabilities that relate to Transferor's Continuing Involvement, Prepayment Speed	9.19%	9.40%
Assumption for Fair Value of Assets or Liabilities that relate to Transferor's Continuing Involvement, Weighted Average Life	3 years	3 years
Assumption for Fair Value of Assets or Liabilities that relate to Transferor's Continuing Involvement, Discount Rate	10.26%	13.60%
Maximum
Assumption for Fair Value as of Balance Sheet Date of Assets or Liabilities that relate to Transferor's Continuing Involvement
Assumption for Fair Value of Assets or Liabilities that relate to Transferor's Continuing Involvement, Prepayment Speed	21.07%	22.40%
Assumption for Fair Value of Assets or Liabilities that relate to Transferor's Continuing Involvement, Weighted Average Life	4 years 10 months	4 years 6 months
Assumption for Fair Value of Assets or Liabilities that relate to Transferor's Continuing Involvement, Discount Rate	15.38%	15.50%

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Indebtedness - Participating Interest Financing (Details) (USD $)			3 Months Ended
	Mar. 31, 2013	Dec. 31, 2012	Mar. 31, 2013 Participating Interest Financing
Debt Instrument
Interest rate, minimum			0.53%
Interest rate, maximum			7.17%
Participating Interest Financing	$ 745,300,000	$ 580,800,000
Participating interest financing	$ 745,263,000	$ 580,836,000

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Indebtedness - Servicing Segment Notes Payable (Details) (USD $)			12 Months Ended			3 Months Ended		1 Months Ended	3 Months Ended				3 Months Ended			3 Months Ended										3 Months Ended
	Mar. 31, 2013	Dec. 31, 2012	Dec. 31, 2012 Servicing Segment Notes Payable, Other MBS Advance Financing Facility	Apr. 01, 2013 Servicing Segment Notes Payable, Other MBS Advance Financing Facility	Mar. 31, 2013 Servicing Segment Notes Payable, Other MBS Advance Financing Facility	Mar. 31, 2013 Servicing Segment Notes Payable, Other Securities Repurchase Facility (2011)	Dec. 31, 2012 Servicing Segment Notes Payable, Other Securities Repurchase Facility (2011)	Oct. 31, 2009 Servicing Segment Notes Payable, Other MSR Note	Mar. 31, 2013 Servicing Segment Notes Payable, Other MSR Note	Dec. 31, 2012 Servicing Segment Notes Payable, Other MSR Note	Mar. 31, 2013 Servicing Segment Notes Payable, Other MBS Advance Financing Facility 2012 [Member]	Dec. 31, 2012 Servicing Segment Notes Payable, Other MBS Advance Financing Facility 2012 [Member]	Mar. 31, 2013 Servicing Segment Notes Payable to Banks Agency Advance Financing Facility (2011) [Member]	Jan. 31, 2013 Servicing Segment Notes Payable to Banks Agency Advance Financing Facility (2011) [Member]	Dec. 31, 2012 Servicing Segment Notes Payable to Banks Agency Advance Financing Facility (2011) [Member]	Mar. 31, 2013 Servicing Segment Notes Payable to Banks ABS Advance Financing Facility (2010)	Dec. 31, 2012 Servicing Segment Notes Payable to Banks ABS Advance Financing Facility (2010)	Mar. 31, 2013 Servicing Segment Notes Payable to Banks AW Agency Advance Financing Facility (2012)	Dec. 31, 2012 Servicing Segment Notes Payable to Banks AW Agency Advance Financing Facility (2012)	Mar. 31, 2013 Servicing Segment Notes Payable to Banks W ABS Advance Financing Facility (2012)	Dec. 31, 2012 Servicing Segment Notes Payable to Banks W ABS Advance Financing Facility (2012)	Mar. 31, 2013 Servicing Segment Notes Payable to Banks R ABS Advance Financing Facility (2012) [Member]	Dec. 31, 2012 Servicing Segment Notes Payable to Banks R ABS Advance Financing Facility (2012) [Member]	Mar. 31, 2013 Servicing Segment Notes Payable to Banks C ABS Advance Financing Facility (2012)	Dec. 31, 2012 Servicing Segment Notes Payable to Banks C ABS Advance Financing Facility (2012)	Mar. 31, 2013 Servicing Segment Notes Payable to Banks Reverse Participations Financing Facility	Dec. 31, 2012 Servicing Segment Notes Payable to Banks Reverse Participations Financing Facility	Mar. 31, 2013 Minimum Servicing Segment Notes Payable to Banks MBS Advance Financing Facility	Mar. 31, 2013 Maximum Servicing Segment Notes Payable, Other MBS Advance Financing Facility	Mar. 31, 2013 Maximum Servicing Segment Notes Payable to Banks R ABS Advance Financing Facility (2012) [Member]	Mar. 31, 2013 Maximum Servicing Segment Notes Payable to Banks C ABS Advance Financing Facility (2012)	Dec. 31, 2012 Borrowing Capacity in Period One [Member] Servicing Segment Notes Payable, Other MBS Advance Financing Facility 2012 [Member]	Dec. 31, 2012 Borrowing Capacity in Period Two [Member] Servicing Segment Notes Payable, Other MBS Advance Financing Facility 2012 [Member]	Dec. 31, 2012 Borrowing Capacity in Period Three [Member] Servicing Segment Notes Payable, Other MBS Advance Financing Facility 2012 [Member]
Debt Instrument
Term of agreement			1 year					4 years
Maximum borrowing capacity				$ 775,000,000.0	$ 325,000,000								$ 600,000,000			$ 300,000,000		$ 100,000,000		$ 500,000,000		$ 400,000,000		$ 700,000,000		$ 150,000,000
Extension period						90 days
Variable interest rate basis			LIBOR			LIBOR			LIBOR				LIBOR			LIBOR										LIBOR
Debt Instrument, Face Amount														300,000,000.0
Line of Credit Facility, Maximum Borrowing Capacity																																125,000,000	100,000,000	50,000,000
Collateral Pledged	$ 3,824,539,000	$ 4,121,154,000	$ 206,622,000		$ 192,278,000	$ 55,603,000	$ 55,603,000		$ 11,299,000	$ 12,328,000	$ 68,992,000	$ 0	$ 608,663,000		$ 549,284,000	$ 237,865,000	$ 233,208,000	$ 0	$ 135,343,000	$ 497,745,000	$ 566,332,000	$ 376,374,000	$ 428,758,000	$ 653,676,000	$ 742,238,000	$ 127,424,000	$ 76,455,000
Debt Instrument, Basis Spread on Variable Rate						3.50%			2.50%			3.50%				3.00%										4.00%		2.50%	4.00%	8.00%	4.25%

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Business Segment Reporting

3 Months Ended

Mar. 31, 2013

Segment Reporting [Abstract]

Business Segment Reporting

19. Business Segment Reporting

Nationstar currently conducts business in two separate operating segments: Servicing and Originations. The Servicing segment provides loan servicing on Nationstar’s total servicing portfolio, including the collection of principal and interest payments and the assessment of ancillary fees related to the servicing of mortgage loans. The Originations segment involves the origination, packaging, and sale of agency mortgage loans into the secondary markets via whole loan sales or securitizations. Nationstar reports the activity not related to either operating segment in the Legacy Portfolio and Other column. The Legacy Portfolio and Other column includes primarily all subprime mortgage loans originated in the latter portion of 2006 and during 2007 or acquired from Nationstar’s predecessor.

Nationstar’s segments are based upon Nationstar’s organizational structure which focuses primarily on the services offered. The accounting policies of each reportable segment are the same as those of Nationstar except for 1) expenses for consolidated back-office operations and general overhead-type expenses such as executive administration and accounting and 2) revenues generated on inter-segment services performed. Expenses are allocated to individual segments based on the estimated value of services performed, including total revenue contributions, personnel headcount, and the equity invested in each segment. Revenues generated or inter-segment services performed are valued based on similar services provided to external parties.

To reconcile to Nationstar’s consolidated results, certain inter-segment revenues and expenses are eliminated in the “Eliminations” column in the following tables.

The following tables are a presentation of financial information by segment for the periods indicated (in thousands):

	Three months ended March 31, 2013
	Servicing			Originations			Operating Segments			Legacy Portfolio and Other			Eliminations			Consolidated
REVENUES:
Servicing fee income	$	206,460		$	—		$	206,460		$	555		$	(9,419	)	$	197,596
Other fee income	39,065			5,896			44,961			(82		)				44,879
Total fee income	245,525			5,896			251,421			473			(9,419		)	242,475
Gain/(loss) on mortgage loans held for sale	(98		)	179,793			179,695			(92		)	8,984			188,587
Total revenues	245,427			185,689			431,116			381			(435		)	431,062
Total expenses and impairments	147,609			111,902			259,511			9,060			—			268,571
Other income (expense):
Interest income	13,380			10,979			24,359			4,814			435			29,608
Interest expense	(71,321		)	(16,759		)	(88,080		)	(4,294		)	—			(92,374		)
Gain on interest rate swaps and caps	795			—			795			473			—			1,268
Total other income (expense)	(57,146		)	(5,780		)	(62,926		)	993			435			(61,498		)
Income (loss) before taxes	$	40,672		$	68,007		$	108,679		$	(7,686	)	$	—		$	100,993
Depreciation and amortization	$	2,306		$	816		$	3,122		$	779		$	—		$	3,901
Total assets	6,378,129			2,155,114			8,533,243			352,322			—			8,885,565

	Three months ended March 31, 2012
	Servicing			Originations			Operating Segments			Legacy Portfolio and Other			Eliminations			Consolidated
REVENUES:
Servicing fee income	$	86,040		$	—		$	86,040		$	617		$	(467	)	$	86,190
Other fee income	7,419			(19		)	7,400			(30		)	—			7,370
Total fee income	93,459			(19		)	93,440			587			(467		)	93,560
Gain on mortgage loans held for sale	—			70,500			70,500			—			12			70,512
Total revenues	93,459			70,481			163,940			587			(455		)	164,072
Total expenses and impairments	59,230			28,474			87,704			8,883			(10		)	96,577
Other income (expense):
Interest income	2,385			3,541			5,926			4,808			467			11,201
Interest expense	(16,928		)	(3,777		)	(20,705		)	(4,253		)	(22		)	(24,980		)
Loss on equity method investment	(117		)	—			(117		)	—			—			(117		)
Gain (loss) on interest rate swaps and caps	38			—			38			(306		)	—			(268		)
Total other income (expense)	(14,622		)	(236		)	(14,858		)	249			445			(14,164		)
Income (loss) before taxes	$	19,607		$	41,771		$	61,378		$	(8,047	)	$	—		$	53,331
Depreciation and amortization	$	860		$	382		$	1,242		$	289		$	—		$	1,531
Total assets	1,402,327			512,418			1,914,745			264,017			—			2,178,762

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Consolidated Statement of Cash Flows-Supplemental Disclosure (Details) (USD $)	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Supplemental Cash Flow Elements [Abstract]
Interest paid	$ 51,800,000	$ 14,000,000
Income taxes paid	$ 46,100,000	$ 0

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Business Segment Reporting (Tables)

3 Months Ended

Mar. 31, 2013

Segment Reporting [Abstract]

Schedule of Segment Reporting Information

The following tables are a presentation of financial information by segment for the periods indicated (in thousands):

	Three months ended March 31, 2013
	Servicing			Originations			Operating Segments			Legacy Portfolio and Other			Eliminations			Consolidated
REVENUES:
Servicing fee income	$	206,460		$	—		$	206,460		$	555		$	(9,419	)	$	197,596
Other fee income	39,065			5,896			44,961			(82		)				44,879
Total fee income	245,525			5,896			251,421			473			(9,419		)	242,475
Gain/(loss) on mortgage loans held for sale	(98		)	179,793			179,695			(92		)	8,984			188,587
Total revenues	245,427			185,689			431,116			381			(435		)	431,062
Total expenses and impairments	147,609			111,902			259,511			9,060			—			268,571
Other income (expense):
Interest income	13,380			10,979			24,359			4,814			435			29,608
Interest expense	(71,321		)	(16,759		)	(88,080		)	(4,294		)	—			(92,374		)
Gain on interest rate swaps and caps	795			—			795			473			—			1,268
Total other income (expense)	(57,146		)	(5,780		)	(62,926		)	993			435			(61,498		)
Income (loss) before taxes	$	40,672		$	68,007		$	108,679		$	(7,686	)	$	—		$	100,993
Depreciation and amortization	$	2,306		$	816		$	3,122		$	779		$	—		$	3,901
Total assets	6,378,129			2,155,114			8,533,243			352,322			—			8,885,565

	Three months ended March 31, 2012
	Servicing			Originations			Operating Segments			Legacy Portfolio and Other			Eliminations			Consolidated
REVENUES:
Servicing fee income	$	86,040		$	—		$	86,040		$	617		$	(467	)	$	86,190
Other fee income	7,419			(19		)	7,400			(30		)	—			7,370
Total fee income	93,459			(19		)	93,440			587			(467		)	93,560
Gain on mortgage loans held for sale	—			70,500			70,500			—			12			70,512
Total revenues	93,459			70,481			163,940			587			(455		)	164,072
Total expenses and impairments	59,230			28,474			87,704			8,883			(10		)	96,577
Other income (expense):
Interest income	2,385			3,541			5,926			4,808			467			11,201
Interest expense	(16,928		)	(3,777		)	(20,705		)	(4,253		)	(22		)	(24,980		)
Loss on equity method investment	(117		)	—			(117		)	—			—			(117		)
Gain (loss) on interest rate swaps and caps	38			—			38			(306		)	—			(268		)
Total other income (expense)	(14,622		)	(236		)	(14,858		)	249			445			(14,164		)
Income (loss) before taxes	$	19,607		$	41,771		$	61,378		$	(8,047	)	$	—		$	53,331
Depreciation and amortization	$	860		$	382		$	1,242		$	289		$	—		$	1,531
Total assets	1,402,327			512,418			1,914,745			264,017			—			2,178,762

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Indebtedness - Legacy Assets (Details) (USD $) In Millions, unless otherwise specified	Nov. 30, 2009	Mar. 31, 2013 Legacy Asset [Member]	Dec. 31, 2012 Legacy Asset [Member]	Mar. 31, 2013 Nonrecourse Debt-Legacy Assets	Dec. 31, 2012 Nonrecourse Debt-Legacy Assets	Mar. 31, 2013 Secured Debt Nonrecourse Debt-Legacy Assets	Mar. 31, 2013 Securities Pledged as Collateral [Member]	Dec. 31, 2012 Securities Pledged as Collateral [Member]
Debt Instrument
Nonrecourse Debt Legacy Assets		$ 98.4	$ 100.6
Interest rate						7.50%
Unpaid principal balance on outstanding notes	222.0						328.5	336.9
Debt Instrument, Principal Amount Outstanding				$ 114.4	$ 117.1

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Guarantor Financial Statement Information - Consolidating Balance Sheets (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2013	Dec. 31, 2012	Mar. 31, 2012	Dec. 31, 2011
Assets
Cash and cash equivalents	$ 220,039	$ 152,649	$ 355,994	$ 62,445
Restricted cash	360,467	393,190
Accounts receivable, net	3,614,827	3,043,606
Mortgage loans held for sale	1,703,709	1,480,537	378,561	458,626
Mortgage loans held for investment, subject to nonrecourse debt - Legacy Asset, net	235,915	238,907
Participating interest in reverse mortgages	978,652	750,273
Receivables from affiliates	8,927	12,604
Mortgage servicing rights - fair value	1,289,643	635,860
Investment in subsidiaries	0	0
Mortgage servicing rights - amortized cost	10,941	10,973
Property and equipment, net	77,407	75,026
REO, net	15,487	10,467
Other assets	369,551	322,051
Total assets	8,885,565	7,126,143	2,178,762
Liabilities and shareholders' equity
Notes payable	3,409,886	3,601,586
Unsecured senior notes	1,669,146	1,062,635
Payables and accrued liabilities	1,529,898	631,431
Payables to affiliates	0	0
Derivative financial instruments	26,895	20,026
Mortgage Servicing Liability	82,931	83,238
Nonrecourse debt-Legacy Assets	98,388	100,620
Excess spread financing - fair value	498,906	288,089
Participating interest financing	745,263	580,836
Total liabilities	8,061,313	6,368,461
Total liabilities and equity	8,885,565	7,126,143
Stockholders' Equity Attributable to Parent	819,262	757,682		281,309
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	824,252	757,682
Parent Company
Assets
Cash and cash equivalents	0	0	355,717	62,201
Restricted cash	0	0
Accounts receivable, net	0	0
Mortgage loans held for sale	0	0
Mortgage loans held for investment, subject to nonrecourse debt - Legacy Asset, net	0	0
Participating interest in reverse mortgages	0	0
Receivables from affiliates	0	0
Mortgage servicing rights - fair value	0	0
Investment in subsidiaries	799,342	728,908
Mortgage servicing rights - amortized cost	0	0
Property and equipment, net	0	0
REO, net	0	0
Other assets	31,464	28,774
Total assets	830,806	757,682
Liabilities and shareholders' equity
Notes payable	0
Unsecured senior notes	0
Payables and accrued liabilities	0
Payables to affiliates	6,554
Derivative financial instruments	0
Mortgage Servicing Liability	0
Nonrecourse debt-Legacy Assets	0
Excess spread financing - fair value	0
Participating interest financing	0	0
Total liabilities	6,554	0
Total liabilities and equity	830,806	757,682
Stockholders' Equity Attributable to Parent	824,252	757,682
Issuer
Assets
Cash and cash equivalents	209,286	152,248	277	244
Restricted cash	194,768	145,657
Accounts receivable, net	3,410,255	3,040,666
Mortgage loans held for sale	1,703,709	1,480,537
Mortgage loans held for investment, subject to nonrecourse debt - Legacy Asset, net	16,717	14,700
Participating interest in reverse mortgages	978,652
Receivables from affiliates	0	0
Mortgage servicing rights - fair value	1,289,643	635,860
Investment in subsidiaries	174,679	149,188
Mortgage servicing rights - amortized cost	10,941
Property and equipment, net	76,102	74,191
REO, net	12,791	8,428
Other assets	337,538	303,737
Total assets		6,766,458
Liabilities and shareholders' equity
Notes payable	1,314,873	1,306,557
Unsecured senior notes	1,669,146	1,062,635
Payables and accrued liabilities	1,525,800	640,369
Payables to affiliates	1,756,912	2,063,766
Derivative financial instruments	21,908	12,060
Mortgage Servicing Liability	82,931	83,238
Nonrecourse debt-Legacy Assets	0	0
Excess spread financing - fair value	498,906	288,089
Participating interest financing	745,263	580,836
Total liabilities	7,615,739	6,037,550
Total liabilities and equity	8,415,081	6,766,458
Stockholders' Equity Attributable to Parent	799,342	728,908
Issuer
Assets
Cash and cash equivalents	209,286
Total assets	8,415,081
Guarantor (Subsidiaries)
Assets
Cash and cash equivalents	753	401	0	0
Restricted cash	18,769	3
Accounts receivable, net	7,666	1,826
Mortgage loans held for sale	0	0
Mortgage loans held for investment, subject to nonrecourse debt - Legacy Asset, net	0	0
Participating interest in reverse mortgages	0
Receivables from affiliates	102,364	92,373
Mortgage servicing rights - fair value	0	0
Investment in subsidiaries	0	0
Mortgage servicing rights - amortized cost	0
Property and equipment, net	1,305	835
REO, net	0	0
Other assets	7,569	1,829
Total assets	138,426	97,267
Liabilities and shareholders' equity
Notes payable	0	0
Unsecured senior notes	0	0
Payables and accrued liabilities	7,853	1,815
Payables to affiliates	0	0
Derivative financial instruments	0	0
Mortgage Servicing Liability	0
Nonrecourse debt-Legacy Assets	0	0
Excess spread financing - fair value	0	0
Participating interest financing	0	0
Total liabilities	7,853	1,815
Total liabilities and equity	138,426	97,267
Stockholders' Equity Attributable to Parent	130,573	95,452
Non-Guarantor (Subsidiaries)
Assets
Cash and cash equivalents	10,000	0	0	0
Restricted cash	146,930	247,530
Accounts receivable, net	196,906	1,114
Mortgage loans held for sale	0	0
Mortgage loans held for investment, subject to nonrecourse debt - Legacy Asset, net	219,198	224,207
Participating interest in reverse mortgages	0
Receivables from affiliates	1,670,029	1,983,997
Mortgage servicing rights - fair value	0	0
Investment in subsidiaries	0	0
Mortgage servicing rights - amortized cost	0
Property and equipment, net	0	0
REO, net	2,696	2,039
Other assets	0	1,847
Total assets	2,245,759	2,460,734
Liabilities and shareholders' equity
Notes payable	2,095,013	2,295,029
Unsecured senior notes	0	0
Payables and accrued liabilities	3,265	3,383
Payables to affiliates	0	0
Derivative financial instruments	4,987	7,966
Mortgage Servicing Liability	0
Nonrecourse debt-Legacy Assets	98,388	100,620
Excess spread financing - fair value	0	0
Participating interest financing	0	0
Total liabilities	2,201,653	2,406,998
Total liabilities and equity	2,245,759	2,460,734
Stockholders' Equity Attributable to Parent	44,106	53,736
Eliminations
Assets
Cash and cash equivalents	0	0
Restricted cash	0	0
Accounts receivable, net	0	0
Mortgage loans held for sale	0	0
Mortgage loans held for investment, subject to nonrecourse debt - Legacy Asset, net	0	0
Participating interest in reverse mortgages	0
Receivables from affiliates	(1,763,466)	(2,063,766)
Mortgage servicing rights - fair value	0	0
Investment in subsidiaries	(974,021)	(878,096)
Mortgage servicing rights - amortized cost	0
Property and equipment, net	0	0
REO, net	0	0
Other assets	(7,020)	(14,136)
Total assets	(2,744,507)	(2,955,998)
Liabilities and shareholders' equity
Notes payable	0	0
Unsecured senior notes	0	0
Payables and accrued liabilities	(7,020)	(14,136)
Payables to affiliates	(1,763,466)	(2,063,766)
Derivative financial instruments	0
Mortgage Servicing Liability	0
Nonrecourse debt-Legacy Assets	0	0
Excess spread financing - fair value	0	0
Participating interest financing	0	0
Total liabilities	(1,770,486)	(2,077,902)
Total liabilities and equity	(2,744,507)	(2,955,998)
Stockholders' Equity Attributable to Parent	$ (974,021)	$ (878,096)

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Derivative Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2013

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Instruments

The following tables provide the outstanding notional balances and fair values of outstanding positions for the dates indicated, and recorded gains/(losses) during the periods indicated (in thousands):

	Expiration Dates	Outstanding Notional		Fair Value		Recorded Gains / (Losses)
For the three months ended March 31, 2013
MORTGAGE LOANS HELD FOR SALE
Loan sale commitments	2013	$	324	$	18	$	(3	)
OTHER ASSETS
IRLCs	2013-2014	7,114,578		180,174		30,126
Forward MBS trades	2013	990,702		1,918		1,030
LPCs	2013	60,561		497		(756		)
LIABILITIES
Interest rate swaps and caps	2014-2015	637,852		4,987		1,004
Interest rate swaps on ABS debt	2013-2017	668,985		1,582		264
Forward MBS trades	2013	5,605,889		20,306		(8,332		)
LPCs	2013	2,837		20		66
For the year ended December 31, 2012
MORTGAGE LOANS HELD FOR SALE
Loan sale commitments	2013	$	445	$	21	$	(613	)
OTHER ASSETS
IRLCs	2013	4,921,963		150,048		138,746
Forward MBS trades	2013	977,900		888		888
LPCs	2013	112,624		1,253		1,253
LIABILITIES
Interest rate swaps and caps	2013-2015	726,168		6,120		420
Interest rate swaps on ABS debt (1)	2013-2017	654,192		1,846		(1,414		)
Forward MBS trades	2013	3,964,721		11,974		(6,144		)
LPCs	2013	78,839		86		(86		)

⁽¹⁾  In March 2012, Nationstar received interest rate swaps from FIF as a part of the reorganization.

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Accounts Receivable Accquired Servicing Advances (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Jun. 30, 2012
Accounts, Notes, Loans and Financing Receivable [Line Items]
Service Advances, Discount		$ 81.8
Accretion of Service Advances Discount	$ 6.1

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Other Assets - Equity Method Investment (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Schedule of Equity Method Investments [Line Items]
Loss on equity method investments	$ 0	$ 117

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Mortgage Servicing Rights - MSR's at Fair Value (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended	12 Months Ended
	Mar. 31, 2013	Dec. 31, 2012
Servicing Asset at Fair Value, Amount [Roll Forward]
Fair value at the end of the period	$ 1,289,643	$ 635,860
Mortgage Servicing Rights
Servicing Asset at Fair Value, Amount [Roll Forward]
Fair value at the beginning of the period	635,860	251,050
Servicing resulting from transfers of financial assets	31,268	58,607
Purchases of servicing assets	632,174	394,445
Changes in fair value due to changes in valuation inputs or assumptions used in the valuation model	43,361	5,500
Other changes in fair value	(53,020)	(73,742)
Fair value at the end of the period	1,289,643	635,860
Principal Amount Outstanding of Loans Held-in-portfolio [Abstract]
Principal amount outstanding on loans managed and securitized	221,844,260	131,124,384
Mortgage Servicing Rights | Credit Sensitive
Principal Amount Outstanding of Loans Held-in-portfolio [Abstract]
Principal amount outstanding on loans managed and securitized	201,730,585	114,629,399
Mortgage Servicing Rights | Interest Rate Sensitive
Principal Amount Outstanding of Loans Held-in-portfolio [Abstract]
Principal amount outstanding on loans managed and securitized	$ 20,113,675	$ 16,494,985
Minimum
Servicing Assets at Fair Value [Line Items]
Servicing fee, percentage of unpaid principal balance		0.25%
Maximum
Servicing Assets at Fair Value [Line Items]
Servicing fee, percentage of unpaid principal balance		0.50%

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Variable Interest Entities and Securitizations - Assets and Liabilities of Consolidated VIEs (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2013	Dec. 31, 2012
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items]
Reverse Mortgage Interest, Unpaid Principal Balance, Securitized	$ 695,723	$ 542,037
Participating interest financing	745,263	580,836
Residential Mortgage
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items]
Assets	3,035,028	3,672,091
Liabilities	2,946,489	2,985,914
Residential Mortgage | Restricted Cash
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items]
Assets	145,908	247,531
Residential Mortgage | Accounts Receivable
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items]
Assets	1,971,502	2,656,277
Residential Mortgage | Mortgage Loans Held for Investment
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items]
Assets	219,198	224,207
Residential Mortgage | Real Estate Owned
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items]
Assets	2,697	2,039
Residential Mortgage | Notes Payable
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items]
Liabilities	2,095,013	2,294,925
Residential Mortgage | Payables and Accrued Liabilities
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items]
Liabilities	2,838	3,415
Residential Mortgage | Derivative Financial Instruments
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items]
Liabilities	4,987	6,118
Residential Mortgage | Nonrecourse Debt-Legacy Assets
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items]
Liabilities	$ 98,388	$ 100,620

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Variable Interest Entities and Securitizations

3 Months Ended

Mar. 31, 2013

Variable Interest Entities and Securitizations [Abstract]

Variable Interest Entities and Securitizations

Variable Interest Entities and Securitizations

Nationstar has been the transferor in connection with a number of securitizations or asset-backed financing arrangements, from which Nationstar has continuing involvement with the underlying transferred financial assets. Nationstar aggregates these securitizations or asset-backed financing arrangements into two groups: 1) securitizations of residential mortgage loans, that were accounted for as sales and 2) financings accounted for as secured borrowings.

On securitizations of residential mortgage loans, Nationstar’s continuing involvement typically includes acting as servicer for the mortgage loans held by the trust and holding beneficial interests in the trust. Nationstar’s responsibilities as servicer include, among other things, collecting monthly payments, maintaining escrow accounts, providing periodic reports and managing insurance in exchange for a contractually specified servicing fee.

Nationstar also maintains various agreements with special purpose entities (SPEs), under which Nationstar transfers mortgage loans and/or servicing advance receivables on residential mortgage loans in exchange for cash. These SPEs issue debt supported by collections on the transferred mortgage loans and/or servicing advance receivables. These transfers do not qualify for sale treatment because Nationstar continues to retain control over the transferred assets. As a result, Nationstar accounts for these transfers as financings and continues to carry the transferred assets and recognizes the related liabilities on Nationstar’s consolidated balance sheets. Collections on the mortgage loans and/or servicing advance receivables pledged to the SPEs are used to repay principal and interest and to pay the expenses of the entity. The holders of these beneficial interests issued by these SPEs do not have recourse to Nationstar and can only look to the assets of the SPEs themselves for satisfaction of the debt.

A variable interest entity (VIE) is an entity that has either a total equity investment that is insufficient to permit the entity to finance its activities without additional subordinated financial support or whose equity investors lack the characteristics of a controlling financial interest. A VIE is consolidated by its primary beneficiary, which is the entity that, through its variable interests has both the power to direct the activities of a VIE that most significantly impact the VIE's economic performance and the obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE.

Nationstar consolidates the SPEs created for the purpose of issuing debt supported by collections on loans and servicing advance receivables that have been transferred to the SPEs as VIEs, and Nationstar is the primary beneficiary of these VIEs. Nationstar consolidates the assets and liabilities of the VIEs into its consolidated financial statements.

A summary of the assets and liabilities of Nationstar’s transactions with VIEs included in the Company’s consolidated financial statements as of March 31, 2013 and December 31, 2012 is presented in the following tables (in thousands):

	March 31, 2013		December 31, 2012
	Transfers Accounted for as Secured Borrowings		Transfers Accounted for as Secured Borrowings
ASSETS
Restricted cash	$	145,908	$	247,531
Reverse mortgage interests	695,723		542,037
Accounts receivable	1,971,502		2,656,277
Mortgage loans held for investment, subject to nonrecourse debt	219,198		224,207
REO	2,697		2,039
Total Assets	$	3,035,028	$	3,672,091
LIABILITIES
Notes payable	$	2,095,013	$	2,294,925
Payables and accrued liabilities	2,838		3,415
Derivative financial instruments	4,987		6,118
Nonrecourse debt–Legacy Assets	98,388		100,620
Participating interest financing	745,263		580,836
Total Liabilities	$	2,946,489	$	2,985,914

A summary of the outstanding collateral and certificate balances for securitization trusts, including any retained beneficial interests and MSRs, that were not consolidated by Nationstar for the periods indicated are as follows (in thousands):

	March 31, 2013		December 31, 2012
Total collateral balances	$	4,031,005	$	4,134,513
Total certificate balances	4,039,553		4,136,316
Total mortgage servicing rights at fair value	32,922		30,940

Nationstar has not retained any variable interests in the unconsolidated securitization trusts that were outstanding as of March 31, 2013 or December 31, 2012, and therefore does not have a significant maximum exposure to loss related to these unconsolidated VIEs. A summary of mortgage loans transferred to unconsolidated securitization trusts that are 60 days or more past due and the credit losses incurred in the unconsolidated securitization trusts are presented below (in thousands):

	For the three months ended
	March 31, 2013				March 31, 2012
	Principal Amount of Loans 60 Days or More Past Due		Credit Losses		Principal Amount of Loans 60 Days or More Past Due		Credit Losses
Total securitization trusts	$	1,179,325	$	64,858	$	936,006	$	79,751

Certain cash flows received from securitization trusts related to the transfers of mortgage loans accounted for as sales for the dates indicated were as follows (in thousands):

	For the three months ended
	March 31, 2013				March 31, 2012
	Servicing Fees Received		Loan Repurchases		Servicing Fees Received		Loan Repurchases
Total securitization trusts	$	6,791	$	—	$	7,861	$	—

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Mortgage Servicing Rights - Fair Value Sensitivity Analysis (Details) (Mortgage Servicing Rights, USD $) In Thousands, unless otherwise specified	9 Months Ended	12 Months Ended
	Sep. 30, 2012	Dec. 31, 2011	Mar. 31, 2013	Dec. 31, 2012
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items]
Total Prepayment Speeds, 10% Adverse Change			$ (96,409)	$ 66,037
Total Prepayment Speeds, 20% Adverse Change			(189,467)	124,995
Credit Losses, 10% Adverse Change			(95,440)	77,072
Credit Losses, 20% Adverse Change			(192,032)	157,433
100 Basis Points
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items]
Percentage change of discount rate	1.00%	1.00%
Discount Rate, Adverse Change			(30,092)	17,060
Two Hundred Basis Points [Member]
Sensitivity Analysis of Fair Value of Interests Continued to be Held by Transferor, Servicing Assets or Liabilities, Impact of Adverse Change in Assumption [Line Items]
Percentage change of discount rate	2.00%	2.00%
Discount Rate, Adverse Change			$ (63,907)	$ 34,419

XML

Guarantor Financial Statement Information (Tables)

3 Months Ended

Mar. 31, 2013

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Consolidating Balance Sheets

NATIONSTAR MORTGAGE HOLDINGS INC. CONSOLIDATING BALANCE SHEET MARCH 31, 2013 (IN THOUSANDS)
Assets	Nationstar Inc.		Issuer		Guarantor (Subsidiaries)		Non-Guarantor (Subsidiaries)		Eliminations			Consolidated
Cash and cash equivalents	$	—	$	209,286	$	753	$	10,000	$	—		$	220,039
Restricted cash	—		194,768		18,769		146,930		—			360,467
Accounts receivable, net	—		3,410,255		7,666		196,906		—			3,614,827
Mortgage loans held for sale	—		1,703,709		—		—		—			1,703,709
Mortgage loans held for investment, subject to nonrecourse debt–Legacy Asset, net	—		16,717		—		219,198		—			235,915
Participating interest in reverse mortgages	—		978,652		—		—		—			978,652
Receivables from affiliates	—		—		102,364		1,670,029		(1,763,466		)	8,927
Mortgage servicing rights – fair value	—		1,289,643		—		—		—			1,289,643
Investment in subsidiaries	799,342		174,679		—		—		(974,021		)	—
Mortgage servicing rights – amortized cost	—		10,941		—		—		—			10,941
Property and equipment, net	—		76,102		1,305		—		—			77,407
REO, net	—		12,791		—		2,696		—			15,487
Other assets	31,464		337,538		7,569		—		(7,020		)	369,551
Total assets	$	830,806	$	8,415,081	$	138,426	$	2,245,759	$	(2,744,507	)	$	8,885,565
Liabilities and stockholders’ equity
Notes payable	$	—	$	1,314,873	$	—	$	2,095,013	$	—		$	3,409,886
Unsecured senior notes	—		1,669,146		—		—		—			1,669,146
Payables and accrued liabilities	—		1,525,800		7,853		3,265		(7,020		)	1,529,898
Payables to affiliates	6,554		1,756,912		—		—		(1,763,466		)	—
Derivative financial instruments	—		21,908		—		4,987		—			26,895
Mortgage Servicing Liability	—		82,931		—		—		—			82,931
Nonrecourse debt–Legacy Assets	—		—		—		98,388		—			98,388
Excess spread financing - at fair value	—		498,906		—		—		—			498,906
Participating interest financing	—		745,263		—		—		—			745,263
Total liabilities	6,554		7,615,739		7,853		2,201,653		(1,770,486		)	8,061,313
Total stockholders’ equity	824,252		799,342		130,573		44,106		(974,021		)	824,252
Total liabilities and stockholders’ equity	$	830,806	$	8,415,081	$	138,426	$	2,245,759	$	(2,744,507	)	$	8,885,565

NATIONSTAR MORTGAGE HOLDINGS INC. CONSOLIDATING BALANCE SHEET DECEMBER 31, 2012 (IN THOUSANDS)
	Nationstar Inc.		Issuer (Parent)		Guarantor (Subsidiaries)		Non-Guarantor (Subsidiaries)		Eliminations			Consolidated
Assets
Cash and cash equivalents	$	—	$	152,248	$	401	$	—	$	—		$	152,649
Restricted cash	—		145,657		3		247,530		—			393,190
Accounts receivable, net	—		3,040,666		1,826		1,114		—			3,043,606
Mortgage loans held for sale	—		1,480,537		—		—		—			1,480,537
Mortgage loans held for investment, subject to nonrecourse debt–Legacy Asset, net	—		14,700		—		224,207		—			238,907
Participating interest in reverse mortgages	—		750,273		—		—		—			750,273
Receivables from affiliates	—		—		92,373		1,983,997		(2,063,766		)	12,604
Mortgage servicing rights – fair value	—		635,860		—		—		—			635,860
Investment in subsidiaries	728,908		149,188		—		—		(878,096		)	—
Mortgage servicing rights - amortized cost	—		10,973		—		—		—			10,973
Property and equipment, net	—		74,191		835		—		—			75,026
REO, net	—		8,428		—		2,039		—			10,467
Other assets	28,774		303,737		1,829		1,847		(14,136		)	322,051
Total assets	$	757,682	$	6,766,458	$	97,267	$	2,460,734	$	(2,955,998	)	$	7,126,143
Liabilities and members’ equity
Notes payable	$	—	$	1,306,557	$	—	$	2,295,029	$	—		$	3,601,586
Unsecured senior notes	—		1,062,635		—		—		—			1,062,635
Payables and accrued liabilities	—		640,369		1,815		3,383		(14,136		)	631,431
Payables to affiliates	—		2,063,766		—		—		(2,063,766		)	—
Derivative financial instruments	—		12,060		—		7,966					20,026
Mortgage Servicing Liability	—		83,238		—		—		—			83,238
Nonrecourse debt–Legacy Assets	—		—		—		100,620		—			100,620
Excess spread financing – fair value	—		288,089		—		—		—			288,089
Participating interest financing	—		580,836		—		—		—			580,836
Total liabilities	—		6,037,550		1,815		2,406,998		(2,077,902		)	6,368,461
Total members’ equity	757,682		728,908		95,452		53,736		(878,096		)	757,682
Total liabilities and members’ equity	$	757,682	$	6,766,458	$	97,267	$	2,460,734	$	(2,955,998	)	$	7,126,143

Consolidating Statements of Operations

NATIONSTAR MORTGAGE LLC CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) FOR THE THREE MONTHS ENDED MARCH 31, 2012 (IN THOUSANDS)
	Issuer			Guarantor (Subsidiaries)			Non-Guarantor (Subsidiaries)			Eliminations			Consolidated
Revenues:
Servicing fee income	$	84,171		$	—		$	2,486		$	(467	)	$	86,190
Other fee income	—			7,255			115			—			7,370
Total fee income	84,171			7,255			2,601			(467		)	93,560
Gain on mortgage loans held for sale	70,512			—			—			—			70,512
Total Revenues	154,683			7,255			2,601			(467		)	164,072
Expenses and impairments:
Salaries, wages and benefits	59,583			2,082			—			—			61,665
General and administrative	26,026			566			2,520			—			29,112
Provision for loan losses	461			—			292			—			753
Loss on foreclosed real estate	—			—			2,265			—			2,265
Occupancy	2,782			—			—			—			2,782
Total expenses and impairments	88,852			2,648			5,077			—			96,577
Other income / (expense):
Interest income	5,887			—			4,847			467			11,201
Interest expense	(18,195		)	—			(6,785		)	—			(24,980		)
Loss on equity method investments	—			(117		)	—			—			(117		)
Gain/(loss) on interest rate swaps and caps	(306		)	—			38			—			(268		)
Gain / (loss) from subsidiaries	114			—			—			(114		)	—
Total other income / (expense)	(12,500		)	(117		)	(1,900		)	353			(14,164		)
Income before taxes	53,331			4,490			(4,376		)	(114		)	53,331
Income tax expense/(benefit)	21,273			—			—			—			21,273
Net Income	$	32,058		$	4,490		$	(4,376	)	$	(114	)	$	32,058

NATIONSTAR MORTGAGE HOLDINGS INC. CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) FOR THE THREE MONTHS ENDED MARCH 31, 2013 (IN THOUSANDS)
	Nationstar Inc.		Issuer			Guarantor (Subsidiaries)		Non-Guarantor (Subsidiaries)			Eliminations			Consolidated
Revenues:
Servicing fee income	$	—	$	207,015		$	—	$	—		$	(9,419	)	$	197,596
Other fee income	—		6,234			38,517		128			—			44,879
Total fee income	—		213,249			38,517		128			(9,419		)	242,475
Gain on mortgage loans held for sale	—		179,603			—		—			8,984			188,587
Total Revenues	—		392,852			38,517		128			(435		)	431,062
Expenses and impairments:
Salaries, wages and benefits	—		128,588			6,399		—			—			134,987
General and administrative	—		116,403			9,239		—			—			125,642
Provision for loan losses	—		—			—		915			—			915
Loss on foreclosed real estate and other	—		296			—		796			—			1,092
Occupancy	—		5,784			151		—			—			5,935
Total expenses and impairments	—		251,071			15,789		1,711			—			268,571
Other income (expense):
Interest income	—		25,424			—		3,749			435			29,608
Interest expense	—		(69,608		)	—		(22,766		)	—			(92,374		)
Gain/(Loss) on interest rate swaps and caps	—		263			—		1,005			—			1,268
Gain/(loss) from subsidiaries	62,616		3,133			—		—			(65,749		)	—
Total other income (expense)	62,616		(40,788		)	—		(18,012		)	(65,314		)	(61,498		)
Income before taxes	62,616		100,993			22,728		(19,595		)	(65,749		)	100,993
Income tax expense/(benefit)	—		38,377			—		—			—			38,377
Net income/(loss) and comprehensive income/(loss)	$	62,616	$	62,616		$	22,728	$	(19,595	)	$	(65,749	)	$	62,616

Consolidating Statements of Cash Flows

NATIONSTAR MORTGAGE HOLDINGS INC. CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE THREE MONTHS ENDED MARCH 31, 2013 (IN THOUSANDS)
	Nationstar Inc.			Issuer			Guarantor (Subsidiaries)			Non-Guarantor (Subsidiaries)			Eliminations			Consolidated
Operating activities:
Net income/(loss)	$	62,616		$	62,616		$	22,728		$	(19,595	)	$	(65,749	)	$	62,616
Adjustments to reconcile net income/(loss) to net cash provided by/(used in) operating activities:
(Gain)/loss from subsidiaries	(62,616		)	(3,133		)	—			—			65,749			—
Share-based compensation	—			2,858			—			—			—			2,858
Provision for loan losses	—			—			—			915			—			915
Loss on foreclosed real estate and other	—			296			—			796			—			1,092
(Gain)/loss on ineffectiveness on interest rate swaps and cap	—			(263		)	—			(1,005		)	—			(1,268		)
Fair value changes in excess spread financing	—			23,891			—			—			—			23,891
Depreciation and amortization	—			3,850			51			—			—			3,901
Change in fair value of mortgage servicing rights	—			9,659			—			—			—			9,659
Amortization/accretion of mortgage servicing rights at amortized cost	—			(275		)	—			—			—			(275		)
Amortization (accretion) of premiums/discounts	—			9,589			—			(80		)	—			9,509
Gain on mortgage loans held for sale	—			(179,603		)	—			—			(8,984		)	(188,587		)
Mortgage loans originated and purchased, net of fees	—			(3,781,116		)	—			—			—			(3,781,116		)
Proceeds on sale of and payments of mortgage loans held for sale	—			3,682,566			—			3,309			8,984			3,694,859
Net tax effect of stock grants	(2,660		)	—			—			—			—			(2,660		)
Changes in assets and liabilities:
Accounts receivable, including servicing advances, net	—			282,727			(5,840		)	(195,793		)	—			81,094
Receivables from/(payables to) affiliates	6,584			(320,843		)	2,402			315,534			—			3,677
Reverse mortgage funded advances	—			(178,181		)	—			—			—			(178,181		)
Other assets	(2,690		)	4,631			(5,740		)	—			(5,477		)	(9,276		)
Payable and accrued liabilities	2,660			(127,198		)	6,038			8,076			5,477			(104,947		)
Net cash provided by/(used in) operating activities	3,894			(507,929		)	19,639			112,157			—			(372,239		)

	Nationstar Inc.			Issuer			Guarantor (Subsidiaries)			Non-Guarantor (Subsidiaries)			Eliminations		Consolidated
Investing activities:
Property and equipment additions, net of disposals	—			(5,761		)	(521		)	—			—		(6,282		)
Deposit on reverse mortgage servicing rights, net	—			(50,198		)	—			—			—		(50,198		)
Deposit on / purchase of mortgage servicing rights, net of liabilities incurred	—			(266,625		)	—			—			—		(266,625		)
Loan repurchases from Ginnie Mae	—			(8,815		)	—			—			—		(8,815		)
Proceeds from sales of REO	—			4,157			—			—			—		4,157
Net cash used in investing activities	—			(327,242		)	(521		)	—			—		(327,763		)
Financing activities:
Issuance of Senior Unsecured Notes	—			599,269			—			—			—		599,269
Transfers to/from restricted cash	—			(49,111		)	(18,766		)	100,600			—		32,723
Issuance of participating interest financing	—			166,646			—			—			—		166,646
Issuance of excess spread financing	—			192,730			—			—			—		192,730
Increase (decrease) in notes payable, net	—			8,316			—			(200,016		)	—		(191,700		)
Repayment of nonrecourse debt–Legacy assets	—			—			—			(2,612		)	—		(2,612		)
Repayment of excess servicing spread financing	—			(20,881		)	—			—			—		(20,881		)
Net tax benefit for stock grants issued	2,660			—			—			—			—		2,660
Contributions from joint venture members to noncontrolling interests	—			4,990			—			—			—		4,990
Redemption of shares for stock vesting	(6,554		)	—			—			—			—		(6,554		)
Cash settlement on derivative financial instruments	—			—			—			(129		)	—		(129		)
Debt financing costs	—			(9,750		)	—			—			—		(9,750		)
Net cash provided by/(used in) financing activities	(3,894		)	892,209			(18,766		)	(102,157		)	—		767,392
Net increase/(decrease) in cash	—			57,038			352			10,000			—		67,390
Cash and cash equivalents at beginning of period	—			152,248			401			—			—		152,649
Cash and cash equivalents at end of period	$	—		$	209,286		$	753		$	10,000		$	—	$	220,039

NATIONSTAR MORTGAGE LLC CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE THREE MONTHS ENDED MARCH 31, 2012 (IN THOUSANDS)
	Issuer (Parent)			Guarantor (Subsidiaries)			Non-Guarantor (Subsidiaries)			Eliminations			Consolidated
Operating activities:
Net income/(loss)	$	32,058		$	4,490		$	(4,376	)	$	(114	)	$	32,058
Adjustments to reconcile net income/(loss) to net cash provided by/(used in) operating activities:
(Gain)/loss from subsidiaries	(114		)	—			—			114			—
Share-based compensation	2,395			—			—			—			2,395
(Gain)/loss on sale of mortgage loans	(70,512		)	—			—			—			(70,512		)
Provision for loan losses	461			—			292			—			753
Loss on foreclosed real estate and other	—			—			2,265			—			2,265
Loss on equity method investments	117			—			—			—			117
(Gain)/loss on ineffectiveness on interest rate swaps and cap	306			—			(38		)	—			268
Fair value changes in excess spread financing	4,852			—			—			—			4,852
Depreciation and amortization	1,531			—			—			—			1,531
Change in fair value of mortgage servicing rights	(495		)	—			—			—			(495		)
Accretion of mortgage servicing liability	(633		)	—			—			—			(633		)
Amortization (accretion) of premiums/discounts	2,685			—			(763		)	—			1,922
Mortgage loans originated and purchased, net of fees	(1,189,942		)	—			—			—			(1,189,942		)
Cost of loans sold and principal payments and prepayments, and other changes in mortgage loans originated as held for sale, net of fees	1,297,338			—			5,758			—			1,303,096
Changes in assets and liabilities:
Accounts receivable	(238,752		)	(10		)	279,447			—			40,685
Receivables from/(payables to) affiliates	302,346			(4,447		)	(297,093		)	—			806
Reverse funded advances due to securitization	(112,738		)	—			—			—			(112,738		)
Other assets	(5,620		)	—			—			—			(5,620		)
Accounts payable and accrued liaibilities	98,546			—			28,779			—			127,325
Net cash provided by/(used in) operating activities	123,829			33			14,271			—			138,133

	Issuer (Parent)			Guarantor (Subsidiaries)		Non-Guarantor (Subsidiaries)			Eliminations		Consolidated
Investing activities:
Property and equipment additions, net of disposals	(2,564		)	—		—			—		(2,564		)
Deposit on / purchase of mortgage servicing rights, net of liabilities incurred	(347		)	—		—			—		(347		)
Repurchases of REO from Ginnie Mae	(2,426		)	—		—			—		(2,426		)
Proceeds from sales of REO	4,816			—		(1,861		)	—		2,955
Net cash provided by/(used in) investing activities	(521		)	—		(1,861		)	—		(2,382		)
Financing activities:
Transfers to/from restricted cash	(82,358		)	—		(8,593		)	—		(90,951		)
Issuance of participating interest financing	115,438			—		—			—		115,438
Increase (decrease) in notes payable, net	(104,743		)	—		(682		)	—		(105,425		)
Repayment of nonrecourse debt–Legacy assets	—			—		(3,135		)	—		(3,135		)
Repayment of excess servicing spread financing	(2,123		)	—		—			—		(2,123		)
Contribution of parent	246,700			—		—			—		246,700
Debt financing costs	(2,706		)	—		—			—		(2,706		)
Net cash provided by/(used in) financing activities	170,208			—		(12,410		)	—		157,798
Net increase/(decrease) in cash	293,516			33		—			—		293,549
Cash and cash equivalents at beginning of period	62,201			244		—			—		62,445
Cash and cash equivalents at end of period	$	355,717		$	277	$	—		$	—	$	355,994

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Subsequent Events

3 Months Ended

Mar. 31, 2013

Subsequent Events [Abstract]

Subsequent Events

23. Subsequent Events

In April 2013, Nationstar entered into an agreement with Freddie Mac to purchase certain mortgage servicing rights and related servicing receivables. Under the terms of this agreement, Nationstar agreed to purchase the rights to service residential mortgage loans with a total UPB of approximately $22 billion and approximately $239 million of related servicing advance receivables. All of the related mortgage loans are owned, insured, or guaranteed by Freddie Mac. The aggregate purchase price is approximately $372 million, which is expected to be funded through cash on hand and the proceeds of a co-investment by Newcastle Investment Corp., and certain funds managed by Fortress which is expected to close in the second quarter of 2013. Nationstar expects to board a portion of these loans onto the servicing system during the second quarter of 2013; with the remaining portion to be subserviced.

In May 2013, Nationstar entered into an agreement to purchase the loan origination operations and related assets of Greenlight Financial Services (Greenlight), a residential mortgage originator. This acquisition is intended to provide channel expansion, increased origination opportunities, and an added source of servicing asset creation for Nationstar. Closing of the transaction is subject to certain customary closing conditions and the transaction is expected to close during the second quarter of 2013. The assets to be acquired will consist of property and equipment, intellectual property (including the Greenlight trademark), and certain other assets. Certain post-closing liabilities related to these assets will also be assumed as part of the transaction. The purchase price for these assets is up to $75 million, subject to certain contingencies. Due to the timing of this transaction, the data necessary to provide the supplemental pro forma information required by ASC 805-10-50-2 is not yet available as of the issuance date of these financial statements and accompanying notes. Nationstar expects to file the required supplemental pro forma information on Form 8-K with the SEC subsequent to the consummation of this transaction.

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Related Party Disclosures

3 Months Ended

Mar. 31, 2013

Related Party Transactions [Abstract]

Related Party Disclosure

Related Party Disclosure

In March 2011, Nationstar entered into a limited partnership agreement with ANC Acquisition LLC (ANC). ANC was the parent company of National Real Estate Information Services, LP (NREIS), which through the ANC partnership Nationstar held a non-controlling interest in NREIS, an ancillary real estate services and vendor management company that directly and indirectly provided title agency settlement or valuation services for loan originations and default management. As Nationstar was able to exercise significant influence, but not control, over the policies and procedures of the entity, and Nationstar owned less than 50% of the voting interests, Nationstar applied the equity method of accounting. In March 2012 as part of the initial public offering restructuring, Nationstar assumed FIF’s 13% ownership in NREIS, increasing the total Nationstar investment to 35%. Nationstar disbursed servicing-related advances of $0.01 million and $4.72 million for the three months ended March 31, 2013 and 2012, respectively.

Through the third quarter of 2012, Nationstar had recognized its portion of NREIS' loss on equity method investment of $1.3 million. During the fourth quarter of 2012, the management of NREIS made the decision to wind down its operations due to continuing poor financial results. Because of the decision to wind down operations and the financial condition of NREIS, Nationstar recorded additional losses amounting to $9.0 million. In addition to its initial investment, Nationstar, during May 2012, advanced NREIS $2.0 million for future services. Nationstar determined that these deposits would not be recovered and fully impaired this additional deposit. In order to effect an orderly wind down of the operation, Nationstar, together with the majority owners of ANC, agreed to fund a portion of the expected wind down costs. As such, Nationstar recorded $2.3 million of losses in excess of its investment at December 31, 2012. There were no losses incurred for the three months ended March 31, 2013.

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Related Party Disclosures (Details) (USD $)			3 Months Ended					3 Months Ended
	Mar. 31, 2013	Dec. 31, 2012	Mar. 31, 2013 NREIS	Mar. 31, 2012 NREIS	May 31, 2012 NREIS	Mar. 31, 2013 Springleaf [Member]	Dec. 31, 2012 Springleaf [Member]	Mar. 31, 2013 Newcastle	Mar. 31, 2012 Newcastle	Mar. 31, 2013 Loan Subservicing Agreement	Dec. 31, 2012 Loan Subservicing Agreement	Mar. 31, 2013 Loan Subservicing Agreement Springleaf [Member] agreement	Mar. 31, 2013 Securitized Mortgage Loans [Member] Springleaf [Member] agreement	Mar. 31, 2013 Securitized Mortgage Loans [Member] Newcastle loan_portfolio
Related Party Transaction [Line Items]
Principal Amount Outstanding on Loans Managed and Securitized or Asset-backed Financing Arrangement						$ 3,300,000,000		$ 1,000,000,000	$ 1,100,000,000	$ 42,700,000,000	$ 45,700,000,000
Due from Affiliates	8,927,000	12,604,000				800,000	700,000
Number of Loan Portfolios Covered in Service Contract												8	7	2
Mortgage Servicing Fee, Percentage of Unpaid Principal Balance								0.50%
Servicing-related advances			0	4,700,000
Advances to Affiliate					$ 2,000,000

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Mortgage Loans Held for Sale and Investment - Accretable Yield (Details) (Mortgage Loans Held for Investment, USD $) In Thousands, unless otherwise specified	3 Months Ended	12 Months Ended
	Mar. 31, 2013	Dec. 31, 2012
Mortgage Loans Held for Investment
Accretable Yield Movement Schedule [Roll Forward]
Balance at the beginning of the period	$ 19,749	$ 22,392
Additions	0	0
Accretion	(852)	(3,548)
Reclassifications from (to) nonaccretable discount	(8)	905
Disposals	0	0
Balance at the end of the period	$ 18,889	$ 19,749

XML

Nature of Business, Basis of Presentation and Material Transaction (Details) (Common Stock)	1 Months Ended
	Mar. 31, 2012
Common Stock
Schedule of Capitalization, Equity [Line Items]
Number of shares issued to FIF as part of Reorganization	70,000,000

XML

Nature of Business, Basis of Presentation and Material Transaction (Policies)

3 Months Ended

Mar. 31, 2013

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Consolidation, Policy

The consolidated financial statements include the accounts of Nationstar Inc., its wholly-owned subsidiaries, and other entities in which the Company has a controlling financial interest, and those variable interest entities (VIEs) where Nationstar Inc.'s wholly-owned subsidiaries are the primary beneficiaries. Nationstar Inc. applies the equity method of accounting to investments when the entity is not a VIE and Nationstar Inc. is able to exercise significant influence, but not control, over the policies and procedures of the entity but owns less than 50% of the voting interests. Intercompany balances and transactions have been eliminated. Results of operations, assets and liabilities of VIEs are included from the date that Nationstar Inc. became the primary beneficiary through the date Nationstar Inc. ceases to be the primary beneficiary.

Basis of Accounting, Policy

The interim consolidated financial statements are unaudited; however, in the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation of the results of the interim periods have been included. The consolidated interim financial statements of Nationstar Inc. have been prepared in accordance with generally accepted accounting principles for interim information and in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X as promulgated by the Securities and Exchange Commission (SEC). Accordingly, the financial statements do not include all of the information and footnotes required by accounting principles generally accepted in the United States (GAAP) for complete financial statements and should be read in conjunction with the audited consolidated financial statements and notes thereto included in Nationstar Inc.'s Annual Report on Form 10-K filed on March 15, 2013.

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Variable Interest Entities and Securitizations (Tables)

3 Months Ended

Mar. 31, 2013

Variable Interest Entities and Securitizations [Abstract]

Schedule of Assets and Liabilities of VIEs Included in Financial Statements

A summary of the assets and liabilities of Nationstar’s transactions with VIEs included in the Company’s consolidated financial statements as of March 31, 2013 and December 31, 2012 is presented in the following tables (in thousands):

	March 31, 2013		December 31, 2012
	Transfers Accounted for as Secured Borrowings		Transfers Accounted for as Secured Borrowings
ASSETS
Restricted cash	$	145,908	$	247,531
Reverse mortgage interests	695,723		542,037
Accounts receivable	1,971,502		2,656,277
Mortgage loans held for investment, subject to nonrecourse debt	219,198		224,207
REO	2,697		2,039
Total Assets	$	3,035,028	$	3,672,091
LIABILITIES
Notes payable	$	2,095,013	$	2,294,925
Payables and accrued liabilities	2,838		3,415
Derivative financial instruments	4,987		6,118
Nonrecourse debt–Legacy Assets	98,388		100,620
Participating interest financing	745,263		580,836
Total Liabilities	$	2,946,489	$	2,985,914

Unconsolidated Securitization Trusts

A summary of the outstanding collateral and certificate balances for securitization trusts, including any retained beneficial interests and MSRs, that were not consolidated by Nationstar for the periods indicated are as follows (in thousands):

	March 31, 2013		December 31, 2012
Total collateral balances	$	4,031,005	$	4,134,513
Total certificate balances	4,039,553		4,136,316
Total mortgage servicing rights at fair value	32,922		30,940

A summary of mortgage loans transferred to unconsolidated securitization trusts that are 60 days or more past due and the credit losses incurred in the unconsolidated securitization trusts are presented below (in thousands):

	For the three months ended
	March 31, 2013				March 31, 2012
	Principal Amount of Loans 60 Days or More Past Due		Credit Losses		Principal Amount of Loans 60 Days or More Past Due		Credit Losses
Total securitization trusts	$	1,179,325	$	64,858	$	936,006	$	79,751

Cash Flow Receieved from Securitization Trusts

Certain cash flows received from securitization trusts related to the transfers of mortgage loans accounted for as sales for the dates indicated were as follows (in thousands):

	For the three months ended
	March 31, 2013				March 31, 2012
	Servicing Fees Received		Loan Repurchases		Servicing Fees Received		Loan Repurchases
Total securitization trusts	$	6,791	$	—	$	7,861	$	—

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Recent Accounting Developments

3 Months Ended

Mar. 31, 2013

Accounting Changes and Error Corrections [Abstract]

Significant Accounting Policies [Text Block]

Recent Accounting Developments

Accounting Standards Update No 2013-01, Balance Sheet: Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities (ASU 2013-01) was created to address issues caused when putting Accounting Standard Update 2011-11 into place and eliminate diversity in practice. The update clarifies that Accounting Standard Update 2011-11 applies to entities that are accounting for derivatives under ASC 815 including bifurcated embedded derivatives, repurchase agreements and reverse repurchase agreements, and securities borrowing and securities lending transactions that are offset under ASC 210-20-45 or ASC 815-10-45, an enforceable master netting arrangement or similar agreement. The Company adopted ASU 2013-01 on January 1, 2013. The adoption of ASU 2013-01 did not have a material impact on our financial condition, liquidity or results of operations.

Accounting Standards Update No 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income (ASU 2013-02) was issued to improve reporting of reclassification of items out of accumulated other comprehensive income by requiring entities to report the effect of any significant reclassifications on the respective line items on the income statement when the amount is required to be reclassified in its entirety in the same reporting period. Additionally, for items that are not required to be reclassified completely to net income, the Company will be required to cross reference other disclosures that provide additional information about the amounts. The information provided about amounts that are reclassified out of accumulated other comprehensive income must be reported by component. The amendments of this update were effective beginning December 15, 2012. The adoption of ASU 2013-02 did not have a material impact on our financial condition, liquidity or results of operations.

Recent Accounting Developments

Recent Accounting Developments

Accounting Standards Update No 2013-01, Balance Sheet: Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities (ASU 2013-01) was created to address issues caused when putting Accounting Standard Update 2011-11 into place and eliminate diversity in practice. The update clarifies that Accounting Standard Update 2011-11 applies to entities that are accounting for derivatives under ASC 815 including bifurcated embedded derivatives, repurchase agreements and reverse repurchase agreements, and securities borrowing and securities lending transactions that are offset under ASC 210-20-45 or ASC 815-10-45, an enforceable master netting arrangement or similar agreement. The Company adopted ASU 2013-01 on January 1, 2013. The adoption of ASU 2013-01 did not have a material impact on our financial condition, liquidity or results of operations.

Accounting Standards Update No 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income (ASU 2013-02) was issued to improve reporting of reclassification of items out of accumulated other comprehensive income by requiring entities to report the effect of any significant reclassifications on the respective line items on the income statement when the amount is required to be reclassified in its entirety in the same reporting period. Additionally, for items that are not required to be reclassified completely to net income, the Company will be required to cross reference other disclosures that provide additional information about the amounts. The information provided about amounts that are reclassified out of accumulated other comprehensive income must be reported by component. The amendments of this update were effective beginning December 15, 2012. The adoption of ASU 2013-02 did not have a material impact on our financial condition, liquidity or results of operations.

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Accounts Receivable (Tables)

3 Months Ended

Mar. 31, 2013

Receivables [Abstract]

Schedule of Accounts Receivable

Accounts receivable consist of the following (in thousands):

	March 31, 2013		December 31, 2012
Servicer advances, net of purchase discount	$	3,351,989	$	2,800,690
Accrued servicing fees	101,349		90,231
Receivables from trusts	30,398		39,029
Reverse mortgage - other	13,171		28,448
Accrued interest	3,920		3,801
Other	114,000		81,407
Total accounts receivable	$	3,614,827	$	3,043,606

XML

Fair Value Measurements - Measured on a Recurring Basis (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2013	Dec. 31, 2012
ASSETS
Mortgage servicing rights - fair value	$ 1,289,643	$ 635,860
Derivative instruments	182,589	152,189
Level 1
ASSETS
Mortgages loans held for sale	0	0
Derivative instruments	0	0
LIABILITIES
Derivative financial instruments	0	0
Level 2
ASSETS
Mortgages loans held for sale	1,703,709	1,480,537
Derivative instruments	182,589	152,189
LIABILITIES
Derivative financial instruments	26,895	20,026
Level 3
ASSETS
Mortgages loans held for sale	0	0
Derivative instruments	0	0
LIABILITIES
Derivative financial instruments	0	0
Fair Value, Measurements, Recurring | Total Fair Value
ASSETS
Mortgages loans held for sale	1,703,709	1,480,537
Mortgage servicing rights - fair value	1,289,643	635,860
Total assets	3,175,941	2,268,586
LIABILITIES
Excess spread financing (at fair value)	498,906	288,089
Total liabilities	525,801	308,115
Fair Value, Measurements, Recurring | Level 1
ASSETS
Mortgages loans held for sale	0	0
Mortgage servicing rights - fair value	0	0
Total assets	0	0
LIABILITIES
Excess spread financing (at fair value)	0	0
Total liabilities	0	0
Fair Value, Measurements, Recurring | Level 2
ASSETS
Mortgages loans held for sale	1,703,709	1,480,537
Mortgage servicing rights - fair value	0	0
Total assets	1,886,298	1,632,726
LIABILITIES
Excess spread financing (at fair value)	0	0
Total liabilities	26,895	20,026
Fair Value, Measurements, Recurring | Level 3
ASSETS
Mortgages loans held for sale	0	0
Mortgage servicing rights - fair value	1,289,643	635,860
Total assets	1,289,643	635,860
LIABILITIES
Excess spread financing (at fair value)	498,906	288,089
Total liabilities	498,906	288,089
Interest Rate Lock Commitments | Fair Value, Measurements, Recurring | Total Fair Value
ASSETS
Derivative instruments	180,174	150,048
Interest Rate Lock Commitments | Fair Value, Measurements, Recurring | Level 1
ASSETS
Derivative instruments	0	0
Interest Rate Lock Commitments | Fair Value, Measurements, Recurring | Level 2
ASSETS
Derivative instruments	180,174	150,048
Interest Rate Lock Commitments | Fair Value, Measurements, Recurring | Level 3
ASSETS
Derivative instruments	0	0
Interest Rate Swaps and Caps | Fair Value, Measurements, Recurring | Total Fair Value
LIABILITIES
Derivative financial instruments	4,987	6,120
Interest Rate Swaps and Caps | Fair Value, Measurements, Recurring | Level 1
LIABILITIES
Derivative financial instruments	0	0
Interest Rate Swaps and Caps | Fair Value, Measurements, Recurring | Level 2
LIABILITIES
Derivative financial instruments	4,987	6,120
Interest Rate Swaps and Caps | Fair Value, Measurements, Recurring | Level 3
LIABILITIES
Derivative financial instruments	0	0
Interest Rate Swap | Fair Value, Measurements, Recurring | Total Fair Value
LIABILITIES
Derivative financial instruments	1,582	1,846
Interest Rate Swap | Fair Value, Measurements, Recurring | Level 1
LIABILITIES
Derivative financial instruments	0	0
Interest Rate Swap | Fair Value, Measurements, Recurring | Level 2
LIABILITIES
Derivative financial instruments	1,582	1,846
Interest Rate Swap | Fair Value, Measurements, Recurring | Level 3
LIABILITIES
Derivative financial instruments	0	0
Forward Contracts | Fair Value, Measurements, Recurring | Total Fair Value
ASSETS
Derivative instruments	1,918	888
LIABILITIES
Derivative financial instruments	20,306	11,974
Forward Contracts | Fair Value, Measurements, Recurring | Level 1
ASSETS
Derivative instruments	0	0
LIABILITIES
Derivative financial instruments	0
Forward Contracts | Fair Value, Measurements, Recurring | Level 2
ASSETS
Derivative instruments	1,918	888
LIABILITIES
Derivative financial instruments	20,306	11,974
Forward Contracts | Fair Value, Measurements, Recurring | Level 3
ASSETS
Derivative instruments	0	0
LIABILITIES
Derivative financial instruments	0
Loan Purchase Commitments [Member] | Fair Value, Measurements, Recurring | Total Fair Value
ASSETS
Derivative instruments	497	1,253
LIABILITIES
Derivative financial instruments	20	86
Loan Purchase Commitments [Member] | Fair Value, Measurements, Recurring | Level 1
ASSETS
Derivative instruments	0	0
LIABILITIES
Derivative financial instruments	0	0
Loan Purchase Commitments [Member] | Fair Value, Measurements, Recurring | Level 2
ASSETS
Derivative instruments	497	1,253
LIABILITIES
Derivative financial instruments	20	86
Loan Purchase Commitments [Member] | Fair Value, Measurements, Recurring | Level 3
ASSETS
Derivative instruments	0	0
LIABILITIES
Derivative financial instruments	$ 0	$ 0

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Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2013

Fair Value Disclosures [Abstract]

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The estimated carrying amount and fair value of Nationstar’s financial instruments and other assets and liabilities measured at fair value on a recurring basis is as follows for the dates indicated (in thousands):

			March 31, 2013
			Recurring Fair Value Measurements
	Total Fair Value		Level 1		Level 2		Level 3
ASSETS
Mortgage loans held for sale(1)	$	1,703,709	$	—	$	1,703,709	$	—
Mortgage servicing rights – fair value(1)	1,289,643		—		—		1,289,643
Other assets:
IRLCs	180,174		—		180,174		—
Forward MBS trades	1,918		—		1,918		—
LPCs	497		—		497		—
Total assets	$	3,175,941	$	—	$	1,886,298	$	1,289,643
LIABILITIES
Derivative financial instruments
Interest rate swaps and caps	$	4,987	$	—	$	4,987	$	—
Interest rate swaps on ABS debt	1,582		—		1,582		—
Forward MBS trades	20,306		—		20,306		—
LPCs	20		—		20		—
Excess spread financing (at fair value)	498,906		—		—		498,906
Total liabilities	$	525,801	$	—	$	26,895	$	498,906
			December 31, 2012
			Recurring Fair Value Measurements
	Total Fair Value		Level 1		Level 2		Level 3
ASSETS
Mortgage loans held for sale(1)	$	1,480,537	$	—	$	1,480,537	$	—
Mortgage servicing rights – fair value(1)	635,860		—		—		635,860
Other assets:
IRLCs	150,048		—		150,048		—
Forward MBS trades	888		—		888		—
LPCs	1,253		—		1,253		—
Total assets	$	2,268,586	$	—	$	1,632,726	$	635,860
LIABILITIES
Derivative financial instruments
Interest rate swaps and caps	$	6,120	$	—	$	6,120	$	—
Interest rate swaps on ABS debt	1,846		—		1,846		—
Forward MBS trades	11,974				11,974
LPCs	86		—		86		—
Excess spread financing (at fair value)	288,089		—		—		288,089
Total liabilities	$	308,115	$	—	$	20,026	$	288,089

⁽¹⁾  Based on the nature and risks of these assets and liabilities, the Company has determined that presenting them as a single class is appropriate.

Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation

The table below presents a reconciliation for all of Nationstar’s Level 3 assets and liabilities measured at fair value on a recurring basis for the dates indicated (in thousands):

	ASSETS			LIABILITIES
For the three months ended March 31, 2013	Mortgage servicing rights			Excess spread financing
Beginning balance	$	635,860		$	288,089
Transfers into Level 3	—			—
Transfers out of Level 3	—			—
Total gains or losses
Included in earnings	(9,659		)	23,891
Included in other comprehensive income	—			—
Purchases, issuances, sales and settlements
Purchases	632,174			—
Issuances	31,268			207,581
Sales	—			—
Settlements	—			(20,655		)
Ending balance	$	1,289,643		$	498,906

	ASSETS			LIABILITIES
For the year ended December 31, 2012	Mortgage servicing rights			Excess spread financing
Beginning balance	$	251,050		$	44,595
Transfers into Level 3	—			—
Transfers out of Level 3	—			—
Total gains or losses
Included in earnings	(68,242		)	10,683
Included in other comprehensive income	—			—
Purchases, issuances, sales and settlements
Purchases	394,445			—
Issuances	58,607			272,676
Sales	—			—
Settlements	—			(39,865		)
Ending balance	$	635,860		$	288,089

Fair Value Measurements, Nonrecurring

The table below presents the items which Nationstar measures at fair value on a nonrecurring basis (in thousands).

	Nonrecurring Fair Value Measurements						Total Estimated Fair Value		Total Gain (Loss) Included in Earnings
	Level 1		Level 2		Level 3
Three months ended March 31, 2013
Assets
REO(1)	$	—	$	—	$	15,487	$	15,487	$	(1,092	)
Total assets	$	—	$	—	$	15,487	$	15,487	$	(1,092	)
Year ended December 31, 2012
Assets
REO(1)	$	—	$	—	$	10,467	$	10,467	$	(2,864	)
Total assets	$	—	$	—	$	10,467	$	10,467	$	(2,864	)

⁽¹⁾  Based on the nature and risks of these assets and liabilities, the Company has determined that presenting them as a single class is appropriate

Fair Value, by Balance Sheet Grouping

The table below presents a summary of the estimated carrying amount and fair value of Nationstar’s financial instruments (in thousands).

	March 31, 2013
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3
Financial assets:
Cash and cash equivalents	$	220,039	$	220,039	$	—	$	—
Restricted cash	360,467		360,467		—		—
Mortgage loans held for sale	1,703,709		—		1,703,709		—
Mortgage loans held for investment, subject to nonrecourse debt – Legacy assets	235,915		—		—		202,618
Reverse mortgage interests	978,652		—		1,034,509		—
Derivative instruments	182,589		—		182,589		—
Financial liabilities:
Notes payable	3,409,886		—		—		3,409,886
Unsecured senior notes	1,669,146		1,806,057		—		—
Derivative financial instruments	26,895		—		26,895		—
Nonrecourse debt - Legacy assets	98,388		—		—		100,066
Excess spread financing	498,906		—		—		498,906
Participating interest financing	745,263		—		747,998		—
	December 31, 2012
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3
Financial assets:
Cash and cash equivalents	$	152,649	$	152,649	$	—	$	—
Restricted cash	393,190		393,190		—		—
Mortgage loans held for sale	1,480,537		—		1,480,537		—
Mortgage loans held for investment, subject to nonrecourse debt – Legacy assets	238,907		—		—		220,755
Reverse mortgage interests	750,273		—		805,650		—
Derivative financial instruments	152,189		—		152,189		—
Financial liabilities:
Notes payable	3,601,586		—		—		3,601,586
Unsecured senior notes	1,062,635		1,151,997		—		—
Derivative financial instruments	20,026		—		20,026		—
Nonrecourse debt - Legacy assets	100,620		—		—		102,492
Excess spread financing	288,089		—		—		288,089
Participating interest financing	580,836		—		593,741		—

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Mortgage Loans Held for Sale and Investment - Mortgage Loans Held for Sale (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2013	Dec. 31, 2012	Mar. 31, 2012	Dec. 31, 2011
Mortgage Loans Held for Sale and Investment [Abstract]
Mortgage loans held for sale - unpaid principal balance	$ 1,646,387	$ 1,426,182
Mark-to-market adjustment	57,322	54,355
Total mortgage loans held for sale	$ 1,703,709	$ 1,480,537	$ 378,561	$ 458,626

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Indebtedness - Originations Segment Notes Payable (Details) (Originations Segment, USD $)	3 Months Ended		3 Months Ended					3 Months Ended								3 Months Ended
	Mar. 31, 2013 Notes Payable to Banks Warehouse Facility $375 Million	Jan. 31, 2013 Notes Payable to Banks Warehouse Facility $375 Million	Mar. 31, 2013 Notes Payable to Banks Warehouse Facility $750 Million (2011) [Member]	Mar. 31, 2013 Notes Payable to Banks Warehouse Facility $100 Million (2009)	Feb. 28, 2013 Notes Payable to Banks Warehouse Facility $100 Million (2009)	Apr. 29, 2013 Notes Payable, Other Warehouse Facility $150 Million	Mar. 31, 2013 Notes Payable, Other Warehouse Facility $150 Million	Mar. 31, 2013 Notes Payable, Other Warehouse Facility $150 Million	Mar. 31, 2013 Notes Payable, Other ASAP Plus Facility	Mar. 31, 2013 Minimum Notes Payable to Banks Warehouse Facility $375 Million	Mar. 31, 2013 Minimum Notes Payable to Banks Warehouse Facility $750 Million (2011) [Member]	Mar. 31, 2013 Minimum Notes Payable, Other Warehouse Facility $150 Million	Mar. 31, 2013 Maximum Notes Payable to Banks Warehouse Facility $375 Million	Mar. 31, 2013 Maximum Notes Payable to Banks Warehouse Facility $750 Million (2011) [Member]	Mar. 31, 2013 Maximum Notes Payable, Other Warehouse Facility $150 Million	Mar. 31, 2013 Maximum Notes Payable, Other ASAP Plus Facility
Debt Instrument
Maximum borrowing capacity	$ 750,000,000	$ 375,000,000.0	$ 750,000,000	$ 300,000,000	$ 100,000,000.0	$ 300,000,000.0	$ 150,000,000.0
Debt Instrument, Unused Borrowing Capacity, Amount						$ 300,000,000	$ 150,000,000
Variable interest rate basis	LIBOR		LIBOR	LIBOR				LIBOR	LIBOR
Interest Rate, LIBOR Plus a spread of				2.50%					1.50%	1.75%	2.25%	0.75%	2.50%	3.00%	3.50%
Maturity length																45 days

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Consolidated Balance Sheets (USD $) In Thousands, unless otherwise specified	Mar. 31, 2013	Dec. 31, 2012
Assets
Cash and cash equivalents	$ 220,039	$ 152,649
Restricted cash	360,467	393,190
Accounts receivable	3,614,827	3,043,606
Mortgage loans held for sale	1,703,709	1,480,537
Mortgage loans held for investment, subject to nonrecourse debt - Legacy Assets, net of allowance for loan losses of $6,101 and $5,824, respectively	235,915	238,907
Reverse mortgage interests	978,652	750,273
Receivables from affiliates	8,927	12,604
Mortgage servicing rights - fair value	1,289,643	635,860
Mortgage servicing rights - amortized cost	10,941	10,973
Property and equipment, net of accumulated depreciation of $42,573 and $39,201, respectively	77,407	75,026
Real estate owned (REO), net	15,487	10,467
Other assets	369,551	322,051
Total assets	8,885,565	7,126,143
Liabilities and equity
Notes payable	3,409,886	3,601,586
Unsecured senior notes	1,669,146	1,062,635
Payables and accrued liabilities	1,529,898	631,431
Derivative financial instruments	26,895	20,026
Mortgage servicing liabilities	82,931	83,238
Nonrecourse debt - Legacy Assets	98,388	100,620
Excess spread financing - fair value	498,906	288,089
Participating interest financing	745,263	580,836
Total liabilities	8,061,313	6,368,461
Commitments and contingencies - See Note 18	0	0
Preferred stock at $0.01 par value - 300,000 shares authorized, no shares issued and outstanding	0	0
Common stock at $0.01 par value - 1,000,000 shares authorized, 89,167 shares issued and outstanding	908	905
Additional paid-in-capital	561,571	556,056
Retained earnings	267,903	205,287
Treasury Stock, Value	(6,554)	0
Common stock held by subsidiary	(4,566)	(4,566)
Total equity	819,262	757,682
Stockholders' Equity Attributable to Noncontrolling Interest	4,990	0
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	824,252	757,682
Total liabilities and equity	$ 8,885,565	$ 7,126,143

XML

Nature of Business, Basis of Presentation and Material Transaction - Material Transaction (Details) (USD $)	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012	Dec. 31, 2012	Jun. 30, 2012	Mar. 31, 2013 Mortgage Servicing Right [Member]	Dec. 31, 2012 Mortgage Servicing Right [Member]	Dec. 31, 2011 Mortgage Servicing Right [Member]	Feb. 28, 2013 Residential Mortgage June 2012	Apr. 16, 2013 Subsequent Event [Member] Mortgage Servicing Right [Member]	Jan. 06, 2013 Subsequent Event [Member] Mortgage Servicing Right [Member] mortgage_loan
Mortgaging Servicing Rights
Number of Loans under Mortgage Servicing Agreement										1,300,000
Purchase Price of Loans under Mortgage Servicing Agreement									$ 400,000,000	$ 7,100,000,000
Percentage of Covered Loans Purchased under Mortgage Servicing Agreement										47.00%
Percentage of Noncovered Loans Purchased under Mortgage Servicing Agreement										53.00%
Payments to Acquire Mortgage Servicing Rights (MSR)	266,625,000	347,000
Mortgage servicing rights - fair value	1,289,643,000		635,860,000		1,289,643,000	635,860,000	251,050,000
Accounts Receivable, Net	3,614,827,000		3,043,606,000
Principal amount outstanding on loans managed and securitized					221,844,260,000	131,124,384,000		15,300,000,000	22,000,000,000	215,000,000,000
Service Advances, Net	3,351,989,000		2,800,690,000	1,700,000,000					200,000,000	5,800,000,000
Issuance of excess spread financing	$ 192,730,000	$ 0

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Guarantor Financial Statement Information - Details (Details) (USD $)	Mar. 31, 2013 subsidiary
Debt Instrument
Guarantor Subsidiary, Ownership Percentage	100.00%
Number of Subsidiaries as Guarantors of Unsecured Debt	2
Unsecured Senior Notes
Debt Instrument
Principal amount	1,700,000,000

XML

Unaudited Consolidated Statements of Cash Flows (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Operating activities
Net income	$ 62,616	$ 50,186
Adjustments to reconcile net income to net cash (used in) / provided by operating activities:
Share-based compensation	2,858	2,395
Gain on mortgage loans held for sale	(188,587)	(70,512)
Provision for loan losses	915	753
Loss on foreclosed real estate	1,092	(2,265)
Loss on equity method investments	0	117
(Gain) / loss on derivatives including ineffectiveness on interest rate swaps and caps	(1,268)	268
Fair value changes in excess spread financing	23,891	4,852
Depreciation and amortization	3,901	1,531
Fair value changes in mortgage servicing rights	9,659	(495)
Amortizable/Accretion of mortgage servicing rights at amortized cost	(275)	(633)
Amortization of debt discount	9,509
Amortization of discounts	9,509	1,922
Mortgage loans originated and purchased, net of fees	(3,781,116)	(1,189,942)
Cost of loans sold and principal payments and prepayments, and other changes in mortgage loans originated as held for sale, net of fees	3,694,859	1,303,096
Changes in assets and liabilities:
Accounts receivable, net	81,094	40,685
Excess Tax Benefit (Tax Deficiency) from Share-based Compensation, Operating Activities	(2,660)
Receivables from affiliates	3,677	806
Reverse mortgage interests	(178,181)	(112,738)
Other assets	(9,276)	(8,471)
Payables and accrued liabilities	(104,947)	109,198
Net cash (used in)/provided by operating activities	(372,239)	135,283
Investing activities
Property and equipment additions, net of disposals	(6,282)	(2,564)
Cash proceeds from assumption of reverse mortgage servicing obligations, net	(50,198)	0
Purchase of forward mortgage servicing rights, net of liabilities incurred	(266,625)	(347)
Loan Repurchases from Ginnie Mae	(8,815)	(2,426)
Proceeds from sales of REO	4,157	2,955
Net cash (used in) / provided by investing activities	(327,763)	(2,382)
Financing activities
Issuance of Senior Unsecured Notes, net	599,269	0
Transfers (to) / from restricted cash, net	32,723	(90,951)
Issuance of common stock, net of IPO issuance costs	0	249,550
Issuance of participating interest financing	166,646	115,438
Issuance of excess spread financing	192,730	0
Increase (decrease) in notes payable	(191,700)	(105,425)
Repayment of nonrecourse debt - Legacy assets	(2,612)	(3,135)
Repayment of excess servicing spread financing	(20,881)	(2,123)
Debt financing costs	(9,750)	(2,706)
Excess Tax Benefit (Tax Deficiency) from Share-based Compensation, Financing Activities	(6,554)	0
Payments for (Proceeds from) Derivative Instrument, Financing Activities	(129)	0
Proceeds from Noncontrolling Interests	4,990	0
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense	2,660	0
Net cash provided by / (used in) financing activities	767,392	160,648
Net increase / (decrease) in cash and cash equivalents	67,390	293,549
Cash and cash equivalents at beginning of period	152,649	62,445
Cash and cash equivalents at end of period	220,039	355,994
Supplemental disclosures of non-cash activities
Transfer of mortgage loans held for investment to REO at fair value	1,454	1,340
Mortgage servicing rights resulting from sale or securitization of mortgage loans	31,268	13,066
Tax related share-based settlement of common stock	6,554	0
Liabilities incurred from acquired servicer advances	$ 365,567	$ 811

XML

Commitments and Contingencies - Other Contingencies (Details) (Loan Subservicing Agreement, USD $) In Millions, unless otherwise specified	Mar. 31, 2013
Maximum
Mortgage Servicing Rights [Line Items]
Incentive fees	$ 2.5
Loss Sharing Agreement [Member]
Mortgage Servicing Rights [Line Items]
Loss Contingency, Range of Possible Loss, Maximum	$ 10.0

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Mortgage Loans Held for Sale and Investment - Reverse Mortgage Interests (Details) (USD $)	3 Months Ended	12 Months Ended
	Mar. 31, 2013	Dec. 31, 2012	Feb. 28, 2013
Servicing Assets at Fair Value [Line Items]
Reserve Mortgage, Participants Age	62 years
Purchase price paid reverse mortgage			$ 50,200,000
Reverse Mortgage Interest, Unpaid Principal Balance, Securitized	695,723,000	542,037,000
Reverse Mortgage Interest, Unpaid Principal Balance, Unsecuritized	283,491,000	208,699,000
Provision for Loan Losses, Reverse Mortgage Interest	600,000	500,000
Reverse mortgage interests	978,652,000	750,273,000
Reverse Mortgage Interest, Valuation Allowance	(562,000)	(463,000)
Reverse Mortgages
Servicing Assets at Fair Value [Line Items]
Principal Amount Outstanding on Loans Managed and Securitized or Asset-backed Financing Arrangement	$ 28,200,000,000		$ 83,100,000,000

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Guarantor Financial Statement Information - Consolidating Statements of Cash Flow (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		12 Months Ended
	Mar. 31, 2013	Mar. 31, 2012	Dec. 31, 2012	Dec. 31, 2011
Condensed Financial Statements
Share-based Compensation	$ 2,858	$ 2,395
Payments for (Proceeds from) Productive Assets	(6,282)	(2,564)
Payments to Acquire Mortgage Servicing Rights (MSR)	(266,625)	(347)
Proceeds from Sale of Real Estate Owned	4,157	2,955
Operating activities
Net income	62,616	50,186	205,287
Adjustments to reconcile net income/(loss) to net cash provided by/(used in) operating activities:
Gain on mortgage loans held for sale	(188,587)	(70,512)
Provision for loan losses	915	753
Loss on foreclosed real estate and other	1,092	(2,265)
Income (Loss) from Equity Method Investments	0	(117)
Gain Loss on Derivatives Including Ineffectiveness on Interest Rate Swaps and Caps	(1,268)	268
Fair value changes in excess spread financing	23,891	4,852
Depreciation and amortization	3,901	1,531
Change in fair value on mortgage servicing rights	9,659	(495)
Accretion of mortgage servicing liability	(275)	(633)
Amortization of Debt Discount (Premium)	9,509
Amortization of premiums/(discounts)	9,509	1,922
Payments for Origination and Purchases of Loans Held-for-sale	(3,781,116)	(1,189,942)
Cost of loans sold and principal payments and prepayments, and other changes in mortgage loans originated as held for sale, net of fees	3,694,859	1,303,096
Changes in assets and liabilities:
Accounts receivable	81,094	40,685
Receivables from/(payables to) affiliates	3,677	806
Excess Tax Benefit (Tax Deficiency) from Share-based Compensation, Operating Activities	(2,660)
Reverse funded advances due to securitization	(178,181)	(112,738)
Other assets	(9,276)	(8,471)
Intercompany Gains (Losses)	0
Increase (Decrease) in Accounts Payable and Accrued Liabilities	(104,947)	109,198
Investing activities
Cash Proceeds from assumption of reverse mortgage servicing obligations, net	(50,198)	0
Repurchases of REO from Ginnie Mae	(8,815)	(2,426)
Net cash (used in) / provided by investing activities	(327,763)	(2,382)
Proceeds from (Repayments of) Restricted Cash, Financing Activities	32,723	(90,951)
Financing activities
Issuance of Senior Unsecured Notes	599,269	0
Issuance of common stock, net of IPO issuance costs	0	249,550
Proceeds from Mortgage Backed Securities Notes Payable	(166,646)	(115,438)
Proceeds from (Repayments of) Secured Debt	(191,700)	(105,425)
Repayment of Nonrecourse Debt Legacy Assets	(2,612)	(3,135)
Issuance of excess spread financing	192,730	0
Repayment of excess servicing spread financing	(20,881)	(2,123)
Payments of Financing Costs	(9,750)	(2,706)
Excess Tax Benefit (Tax Deficiency) from Share-based Compensation, Financing Activities	(6,554)	0
Payments for (Proceeds from) Derivative Instrument, Financing Activities	(129)	0
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense	2,660	0
Proceeds from Noncontrolling Interests	4,990	0
Net Cash Provided by (Used in) Financing Activities	767,392	160,648
Net increase / (decrease) in cash and cash equivalents	67,390	293,549
Cash and cash equivalents at beginning of period	152,649	62,445	62,445
Cash and cash equivalents at end of period	220,039	355,994	152,649
Net Cash Provided by (Used in) Operating Activities	(372,239)	135,283
Parent Company
Condensed Financial Statements
Share-based Compensation	0
Payments for (Proceeds from) Productive Assets	0
Payments to Acquire Mortgage Servicing Rights (MSR)	0
Proceeds from Sale of Real Estate Owned	0
Operating activities
Net income	62,616
Adjustments to reconcile net income/(loss) to net cash provided by/(used in) operating activities:
Gain on mortgage loans held for sale	0
Provision for loan losses	0
Loss on foreclosed real estate and other	0
Gain Loss on Derivatives Including Ineffectiveness on Interest Rate Swaps and Caps	0
Fair value changes in excess spread financing	0
Depreciation and amortization	0
Change in fair value on mortgage servicing rights	0
Accretion of mortgage servicing liability	0
Amortization of Debt Discount (Premium)	0
Payments for Origination and Purchases of Loans Held-for-sale	0
Cost of loans sold and principal payments and prepayments, and other changes in mortgage loans originated as held for sale, net of fees	0
Changes in assets and liabilities:
Accounts receivable	0
Receivables from/(payables to) affiliates	6,584
Excess Tax Benefit (Tax Deficiency) from Share-based Compensation, Operating Activities	(2,660)
Reverse funded advances due to securitization	0
Other assets	(2,690)
Intercompany Gains (Losses)	62,616
Increase (Decrease) in Accounts Payable and Accrued Liabilities	2,660
Investing activities
Cash Proceeds from assumption of reverse mortgage servicing obligations, net	0
Repurchases of REO from Ginnie Mae	0
Net cash (used in) / provided by investing activities	0
Proceeds from (Repayments of) Restricted Cash, Financing Activities	0
Financing activities
Issuance of Senior Unsecured Notes	0
Proceeds from Mortgage Backed Securities Notes Payable	0
Proceeds from (Repayments of) Secured Debt	0
Repayment of Nonrecourse Debt Legacy Assets	0
Issuance of excess spread financing	0
Repayment of excess servicing spread financing	0
Payments of Financing Costs	0
Excess Tax Benefit (Tax Deficiency) from Share-based Compensation, Financing Activities	(6,554)
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense			2,660
Net Cash Provided by (Used in) Financing Activities	(3,894)
Net increase / (decrease) in cash and cash equivalents	0			293,516
Cash and cash equivalents at beginning of period	0	62,201	62,201
Cash and cash equivalents at end of period	0	355,717	0	62,201
Net Cash Provided by (Used in) Operating Activities	3,894
Issuer
Condensed Financial Statements
Share-based Compensation	2,858	2,395
Payments for (Proceeds from) Productive Assets	(5,761)	(2,564)
Payments to Acquire Mortgage Servicing Rights (MSR)	(266,625)	(347)
Proceeds from Sale of Real Estate Owned	4,157	4,816
Operating activities
Net income	62,616	32,058
Adjustments to reconcile net income/(loss) to net cash provided by/(used in) operating activities:
Gain on mortgage loans held for sale	(179,603)	(70,512)
Provision for loan losses	0	461
Loss on foreclosed real estate and other	296	0
Income (Loss) from Equity Method Investments		0
Gain Loss on Derivatives Including Ineffectiveness on Interest Rate Swaps and Caps	(263)	306
Fair value changes in excess spread financing	23,891	4,852
Depreciation and amortization	3,850	1,531
Change in fair value on mortgage servicing rights	9,659	(495)
Accretion of mortgage servicing liability	(275)	(633)
Amortization of Debt Discount (Premium)	9,589	2,685
Payments for Origination and Purchases of Loans Held-for-sale	(3,781,116)	(1,189,942)
Cost of loans sold and principal payments and prepayments, and other changes in mortgage loans originated as held for sale, net of fees	3,682,566	1,297,338
Changes in assets and liabilities:
Accounts receivable	282,727	(238,752)
Receivables from/(payables to) affiliates	(320,843)	302,346
Excess Tax Benefit (Tax Deficiency) from Share-based Compensation, Operating Activities	0
Reverse funded advances due to securitization	(178,181)	(112,738)
Other assets	4,631	(5,620)
Intercompany Gains (Losses)	3,133	114
Increase (Decrease) in Accounts Payable and Accrued Liabilities	(127,198)	98,546
Investing activities
Repurchases of REO from Ginnie Mae	(8,815)	(2,426)
Net cash (used in) / provided by investing activities		(521)
Proceeds from (Repayments of) Restricted Cash, Financing Activities	(49,111)	(82,358)
Financing activities
Issuance of Senior Unsecured Notes	599,269
Proceeds from Mortgage Backed Securities Notes Payable	166,646	(115,438)
Proceeds from (Repayments of) Secured Debt	8,316	(104,743)
Repayment of Nonrecourse Debt Legacy Assets	0	0
Issuance of excess spread financing	192,730	(2,123)
Repayment of excess servicing spread financing	(20,881)
Contributions of parent		246,700
Payments of Financing Costs	(9,750)			(2,706)
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense			0
Proceeds from Noncontrolling Interests	4,990
Net Cash Provided by (Used in) Financing Activities		170,208
Net increase / (decrease) in cash and cash equivalents	57,038			33
Cash and cash equivalents at beginning of period	152,248	244	244
Cash and cash equivalents at end of period	209,286	277	152,248	244
Net Cash Provided by (Used in) Operating Activities	(507,929)	123,829
Issuer
Operating activities
Net income	62,616
Adjustments to reconcile net income/(loss) to net cash provided by/(used in) operating activities:
Gain on mortgage loans held for sale	(179,603)
Provision for loan losses	0
Loss on foreclosed real estate and other	296
Changes in assets and liabilities:
Intercompany Gains (Losses)	3,133
Investing activities
Cash Proceeds from assumption of reverse mortgage servicing obligations, net	(50,198)
Net cash (used in) / provided by investing activities	(327,242)
Financing activities
Net Cash Provided by (Used in) Financing Activities	892,209
Cash and cash equivalents at end of period	209,286
Guarantor (Subsidiaries)
Condensed Financial Statements
Share-based Compensation	0	0
Payments for (Proceeds from) Productive Assets	(521)	0
Payments to Acquire Mortgage Servicing Rights (MSR)	0	0
Proceeds from Sale of Real Estate Owned	0	0
Operating activities
Net income	22,728	4,490
Adjustments to reconcile net income/(loss) to net cash provided by/(used in) operating activities:
Gain on mortgage loans held for sale	0	0
Provision for loan losses	0	0
Loss on foreclosed real estate and other	0	0
Income (Loss) from Equity Method Investments		(117)
Gain Loss on Derivatives Including Ineffectiveness on Interest Rate Swaps and Caps	0
Fair value changes in excess spread financing	0
Depreciation and amortization	51	0
Change in fair value on mortgage servicing rights	0	0
Accretion of mortgage servicing liability	0
Amortization of Debt Discount (Premium)	0	0
Payments for Origination and Purchases of Loans Held-for-sale	0	0
Cost of loans sold and principal payments and prepayments, and other changes in mortgage loans originated as held for sale, net of fees	0	0
Changes in assets and liabilities:
Accounts receivable	(5,840)	(10)
Receivables from/(payables to) affiliates	2,402	(4,447)
Excess Tax Benefit (Tax Deficiency) from Share-based Compensation, Operating Activities	0
Reverse funded advances due to securitization	0	0
Other assets	(5,740)	0
Intercompany Gains (Losses)	0	0
Increase (Decrease) in Accounts Payable and Accrued Liabilities	6,038	0
Investing activities
Cash Proceeds from assumption of reverse mortgage servicing obligations, net	0
Repurchases of REO from Ginnie Mae	0	0
Net cash (used in) / provided by investing activities	(521)	0
Proceeds from (Repayments of) Restricted Cash, Financing Activities	(18,766)	0
Financing activities
Issuance of Senior Unsecured Notes	0
Proceeds from Mortgage Backed Securities Notes Payable	0	0
Proceeds from (Repayments of) Secured Debt	0	0
Repayment of Nonrecourse Debt Legacy Assets	0	0
Issuance of excess spread financing	0	0
Repayment of excess servicing spread financing	0
Contributions of parent		0
Payments of Financing Costs	0			0
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense			0
Net Cash Provided by (Used in) Financing Activities	(18,766)	0
Net increase / (decrease) in cash and cash equivalents	352			0
Cash and cash equivalents at beginning of period	401	0	0
Cash and cash equivalents at end of period	753	0	401	0
Net Cash Provided by (Used in) Operating Activities	19,639	33
Non-Guarantor (Subsidiaries)
Condensed Financial Statements
Share-based Compensation	0	0
Payments for (Proceeds from) Productive Assets	0	0
Payments to Acquire Mortgage Servicing Rights (MSR)	0	0
Proceeds from Sale of Real Estate Owned	0	(1,861)
Operating activities
Net income	(19,595)	(4,376)
Adjustments to reconcile net income/(loss) to net cash provided by/(used in) operating activities:
Gain on mortgage loans held for sale	0	0
Provision for loan losses	915	292
Loss on foreclosed real estate and other	796	2,265
Income (Loss) from Equity Method Investments		0
Gain Loss on Derivatives Including Ineffectiveness on Interest Rate Swaps and Caps	(1,005)	(38)
Fair value changes in excess spread financing	0
Depreciation and amortization	0	0
Change in fair value on mortgage servicing rights	0	0
Accretion of mortgage servicing liability	0
Amortization of Debt Discount (Premium)	(80)	(763)
Payments for Origination and Purchases of Loans Held-for-sale	0	0
Cost of loans sold and principal payments and prepayments, and other changes in mortgage loans originated as held for sale, net of fees	3,309	5,758
Changes in assets and liabilities:
Accounts receivable	(195,793)	279,447
Receivables from/(payables to) affiliates	315,534	(297,093)
Excess Tax Benefit (Tax Deficiency) from Share-based Compensation, Operating Activities	0
Reverse funded advances due to securitization	0	0
Other assets	0	0
Intercompany Gains (Losses)	0	0
Increase (Decrease) in Accounts Payable and Accrued Liabilities	8,076	28,779
Investing activities
Cash Proceeds from assumption of reverse mortgage servicing obligations, net	0
Repurchases of REO from Ginnie Mae	0	0
Net cash (used in) / provided by investing activities	0	(1,861)
Proceeds from (Repayments of) Restricted Cash, Financing Activities	100,600	(8,593)
Financing activities
Issuance of Senior Unsecured Notes	0
Proceeds from Mortgage Backed Securities Notes Payable	0	0
Proceeds from (Repayments of) Secured Debt	(200,016)	(682)
Repayment of Nonrecourse Debt Legacy Assets	(2,612)	(3,135)
Issuance of excess spread financing	0	0
Repayment of excess servicing spread financing	0
Contributions of parent		0
Payments of Financing Costs	0			0
Payments for (Proceeds from) Derivative Instrument, Financing Activities	(129)
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense			0
Net Cash Provided by (Used in) Financing Activities	(102,157)	(12,410)
Net increase / (decrease) in cash and cash equivalents	10,000			0
Cash and cash equivalents at beginning of period	0	0	0
Cash and cash equivalents at end of period	10,000	0	0	0
Net Cash Provided by (Used in) Operating Activities	112,157	14,271
Eliminations
Condensed Financial Statements
Share-based Compensation	0	0
Payments for (Proceeds from) Productive Assets	0	0
Payments to Acquire Mortgage Servicing Rights (MSR)	0	0
Proceeds from Sale of Real Estate Owned	0	0
Operating activities
Net income	(65,749)	(114)
Adjustments to reconcile net income/(loss) to net cash provided by/(used in) operating activities:
Gain on mortgage loans held for sale	(8,984)	0
Provision for loan losses	0	0
Loss on foreclosed real estate and other	0	0
Income (Loss) from Equity Method Investments		0
Gain Loss on Derivatives Including Ineffectiveness on Interest Rate Swaps and Caps	0
Fair value changes in excess spread financing	0
Depreciation and amortization	0	0
Change in fair value on mortgage servicing rights	0	0
Accretion of mortgage servicing liability	0
Amortization of Debt Discount (Premium)	0	0
Payments for Origination and Purchases of Loans Held-for-sale	0	0
Cost of loans sold and principal payments and prepayments, and other changes in mortgage loans originated as held for sale, net of fees	8,984	0
Changes in assets and liabilities:
Accounts receivable	0	0
Receivables from/(payables to) affiliates	0	0
Excess Tax Benefit (Tax Deficiency) from Share-based Compensation, Operating Activities	0
Reverse funded advances due to securitization	0	0
Other assets	(5,477)	0
Intercompany Gains (Losses)	(65,749)	(114)
Increase (Decrease) in Accounts Payable and Accrued Liabilities	5,477
Investing activities
Cash Proceeds from assumption of reverse mortgage servicing obligations, net	0
Repurchases of REO from Ginnie Mae	0	0
Net cash (used in) / provided by investing activities	0	0
Proceeds from (Repayments of) Restricted Cash, Financing Activities	0	0
Financing activities
Issuance of Senior Unsecured Notes	0
Proceeds from Mortgage Backed Securities Notes Payable	0	0
Proceeds from (Repayments of) Secured Debt	0	0
Repayment of Nonrecourse Debt Legacy Assets	0	0
Issuance of excess spread financing	0	0
Repayment of excess servicing spread financing	0
Contributions of parent		0
Payments of Financing Costs	0			0
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense			0
Net Cash Provided by (Used in) Financing Activities	0	0
Net increase / (decrease) in cash and cash equivalents	0
Cash and cash equivalents at beginning of period	0
Cash and cash equivalents at end of period	0		0
Net Cash Provided by (Used in) Operating Activities	0	0
Nationstar Mortgage LLC
Condensed Financial Statements
Share-based Compensation		2,395
Payments for (Proceeds from) Productive Assets		(2,564)
Payments to Acquire Mortgage Servicing Rights (MSR)		(347)
Proceeds from Sale of Real Estate Owned		2,955
Operating activities
Net income		32,058
Adjustments to reconcile net income/(loss) to net cash provided by/(used in) operating activities:
Gain on mortgage loans held for sale		(70,512)
Provision for loan losses		753
Loss on foreclosed real estate and other		(2,265)
Income (Loss) from Equity Method Investments		(117)
Gain Loss on Derivatives Including Ineffectiveness on Interest Rate Swaps and Caps		268
Fair value changes in excess spread financing		4,852
Depreciation and amortization		1,531
Change in fair value on mortgage servicing rights		(495)
Accretion of mortgage servicing liability		(633)
Amortization of Debt Discount (Premium)		1,922
Payments for Origination and Purchases of Loans Held-for-sale		(1,189,942)
Cost of loans sold and principal payments and prepayments, and other changes in mortgage loans originated as held for sale, net of fees		1,303,096
Changes in assets and liabilities:
Accounts receivable		40,685
Receivables from/(payables to) affiliates		806
Reverse funded advances due to securitization		(112,738)
Other assets		(5,620)
Intercompany Gains (Losses)		0
Increase (Decrease) in Accounts Payable and Accrued Liabilities		127,325
Investing activities
Repurchases of REO from Ginnie Mae		(2,426)
Net cash (used in) / provided by investing activities		(2,382)
Proceeds from (Repayments of) Restricted Cash, Financing Activities		(90,951)
Financing activities
Proceeds from Mortgage Backed Securities Notes Payable		(115,438)
Proceeds from (Repayments of) Secured Debt		(105,425)
Repayment of Nonrecourse Debt Legacy Assets		(3,135)
Issuance of excess spread financing		(2,123)
Contributions of parent		246,700
Payments of Financing Costs		(2,706)
Net Cash Provided by (Used in) Financing Activities		157,798
Net increase / (decrease) in cash and cash equivalents		293,549
Cash and cash equivalents at beginning of period		62,445	62,445
Cash and cash equivalents at end of period		355,994
Net Cash Provided by (Used in) Operating Activities		$ 138,133

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Other Assets (Tables)

3 Months Ended

Mar. 31, 2013

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Schedule of Other Assets

Other assets consisted of the following (in thousands):

	March 31, 2013		December 31, 2012
Derivative financial instruments (see Note 10)	$	182,589	$	152,189
Loans subject to repurchase right from Ginnie Mae	74,645		72,156
Deferred financing costs	57,469		46,780
Deferred tax asset (see Note 13)	9,892		23,737
Margin call deposits	14,152		10,920
Deposits pending on mortgage servicing rights acquisitions	9,986		2,040
Prepaid expenses	9,649		6,083
Other	11,169		8,146
Total other assets	$	369,551	$	322,051

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Other Assets - Others Assets (Details) (USD $)	Mar. 31, 2013	Jan. 31, 2013	Dec. 31, 2012
Other Assets [Line Items]
Business Acquisition, Purchase Price Allocation, Goodwill Amount		$ 7,500,000
Other Assets
Interest rate locks	182,589,000		152,189,000
Loans subject to repurchase right from Ginnie Mae	74,645,000		72,156,000
Deferred financing costs	57,469,000		46,780,000
Deferred Tax Assets, Net	9,892,000		23,737,000
Margin call deposits	14,152,000		10,920,000
Prepaid expenses	9,649,000		6,083,000
Escrow Deposit	9,986,000		2,040,000
Other	11,169,000		8,146,000
Total other assets	369,551,000		322,051,000
Business Acquisition, Cost of Acquired Entity, Purchase Price		$ 13,000,000

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Earnings Per Share

3 Months Ended

Mar. 31, 2013

Earnings Per Share [Abstract]

Earnings Per Share

Earnings Per Share

Net income per share is computed under the provisions of ASC 260, Earnings Per Share. Basic net income per share is computed based on the weighted-average number of common shares outstanding during the period. Diluted net income per share is computed based on the weighted-average number of common shares plus the effect of dilutive potential common shares outstanding during the period using the treasury stock method. Dilutive potential common shares represent outstanding restricted stock.

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Payables and Accrued Liabilities (Tables)

3 Months Ended

Mar. 31, 2013

Payables and Accruals [Abstract]

Schedule of Payables and Accrued Liabilities

Payables and accrued liabilities consist of the following (in thousands):

	March 31, 2013		December 31, 2012
MSR purchases payable including advances (see Note 1)	$	865,487	$	14,243
Reverse mortgage payables	113,601		103,068
Mortgage insurance premiums and reserves	105,563		77,967
Loans subject to repurchase from Ginnie Mae	74,645		72,156
Accrued interest	57,274		31,938
Government sponsored entities	55,740		27,071
Servicing payables	63,651		73,967
Taxes	26,209		50,908
Lease payables	27,170		29,553
Accrued bonus and payroll	27,077		58,083
Repurchase reserves	20,902		18,511
Payables to securitization trusts	19,195		7,946
Legal and professional fees	13,815		27,860
Cancelled lease reserves	6,661		7,188
Other	52,908		30,972
Total payables and accrued liabilities	$	1,529,898	$	631,431

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Guarantor Financial Statement Information - Consolidating Statements of Operations and Comprehensive Income (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		12 Months Ended
	Mar. 31, 2013	Mar. 31, 2012	Dec. 31, 2012
Revenues:
Servicing fee income	$ 197,596	$ 86,190
Other fee income	44,879	7,370
Total fee income	242,475	93,560
Gain on mortgage loans held for sale	188,587	70,512
Total revenues	431,062	164,072
Expenses and impairments:
Salaries, wages and benefits	134,987	61,665
General and administrative	125,642	29,112
Provision for loan losses	915	753
Loss on foreclosed real estate and other	1,092	(2,265)
Occupancy	(5,935)	(2,782)
Total expenses and impairments	268,571	96,577
Other income (expense):
Interest income	29,608	11,201
Interest expense	(92,374)	(24,980)
Gain / (Loss) on interest rate swaps and caps	1,268	(268)
Income before taxes	100,993	53,331
Income tax expense	(38,377)	(3,145)
Income (Loss) from Equity Method Investments	0	(117)
Intercompany Gains (Losses)	0
Nonoperating Income (Expense)	(61,498)	(14,164)
Net Income (Loss) Attributable to Parent	62,616	50,186	205,287
Issuer
Revenues:
Servicing fee income		84,171
Other fee income		0
Total fee income		84,171
Gain on mortgage loans held for sale	179,603	70,512
Total revenues		154,683
Expenses and impairments:
Salaries, wages and benefits		59,583
General and administrative		26,026
Provision for loan losses	0	461
Loss on foreclosed real estate and other	296	0
Occupancy		(2,782)
Total expenses and impairments		88,852
Other income (expense):
Interest income		5,887
Interest expense		18,195
Gain / (Loss) on interest rate swaps and caps		(306)
Income before taxes		53,331
Income tax expense		(21,273)
Income (Loss) from Equity Method Investments		0
Intercompany Gains (Losses)	3,133	114
Nonoperating Income (Expense)		(12,500)
Net Income (Loss) Attributable to Parent	62,616	32,058
Issuer
Revenues:
Servicing fee income	207,015
Other fee income	6,234
Total fee income	213,249
Gain on mortgage loans held for sale	179,603
Total revenues	392,852
Expenses and impairments:
Salaries, wages and benefits	128,588
General and administrative	116,403
Provision for loan losses	0
Loss on foreclosed real estate and other	296
Occupancy	(5,784)
Total expenses and impairments	251,071
Other income (expense):
Interest income	25,424
Interest expense	(69,608)
Gain / (Loss) on interest rate swaps and caps	263
Income before taxes	100,993
Income tax expense	38,377
Intercompany Gains (Losses)	3,133
Nonoperating Income (Expense)	(40,788)
Net Income (Loss) Attributable to Parent	62,616
Guarantor (Subsidiaries)
Revenues:
Servicing fee income	0	0
Other fee income	38,517	7,255
Total fee income	38,517	7,255
Gain on mortgage loans held for sale	0	0
Total revenues	38,517	7,255
Expenses and impairments:
Salaries, wages and benefits	6,399	2,082
General and administrative	9,239	566
Provision for loan losses	0	0
Loss on foreclosed real estate and other	0	0
Occupancy	(151)	0
Total expenses and impairments	15,789	2,648
Other income (expense):
Interest income	0	0
Interest expense	0	0
Gain / (Loss) on interest rate swaps and caps	0	0
Income before taxes	22,728	4,490
Income tax expense	0	0
Income (Loss) from Equity Method Investments		(117)
Intercompany Gains (Losses)	0	0
Nonoperating Income (Expense)	0	(117)
Net Income (Loss) Attributable to Parent	22,728	4,490
Non-Guarantor (Subsidiaries)
Revenues:
Servicing fee income	0	2,486
Other fee income	128	115
Total fee income	128	2,601
Gain on mortgage loans held for sale	0	0
Total revenues	128	2,601
Expenses and impairments:
Salaries, wages and benefits	0	0
General and administrative	0	2,520
Provision for loan losses	915	292
Loss on foreclosed real estate and other	796	2,265
Occupancy	0	0
Total expenses and impairments	1,711	5,077
Other income (expense):
Interest income	3,749	4,847
Interest expense	(22,766)	6,785
Gain / (Loss) on interest rate swaps and caps	1,005	38
Income before taxes	(19,595)	(4,376)
Income tax expense	0	0
Income (Loss) from Equity Method Investments		0
Intercompany Gains (Losses)	0	0
Nonoperating Income (Expense)	(18,012)	(1,900)
Net Income (Loss) Attributable to Parent	(19,595)	(4,376)
Eliminations
Revenues:
Servicing fee income	(9,419)	(467)
Other fee income	0	0
Total fee income	(9,419)	(467)
Gain on mortgage loans held for sale	8,984	0
Total revenues	(435)	(467)
Expenses and impairments:
Salaries, wages and benefits	0	0
General and administrative	0	0
Provision for loan losses	0	0
Loss on foreclosed real estate and other	0	0
Occupancy	0	0
Total expenses and impairments	0	0
Other income (expense):
Interest income	435	467
Interest expense	0	0
Gain / (Loss) on interest rate swaps and caps	0	0
Income before taxes	(65,749)	(114)
Income tax expense	0	0
Income (Loss) from Equity Method Investments		0
Intercompany Gains (Losses)	(65,749)	(114)
Nonoperating Income (Expense)	(65,314)	353
Net Income (Loss) Attributable to Parent	(65,749)	(114)
Nationstar Mortgage LLC
Revenues:
Servicing fee income		86,190
Other fee income		7,370
Total fee income		93,560
Gain on mortgage loans held for sale		70,512
Total revenues		164,072
Expenses and impairments:
Salaries, wages and benefits		61,665
General and administrative		29,112
Provision for loan losses		753
Loss on foreclosed real estate and other		(2,265)
Occupancy		(2,782)
Total expenses and impairments		96,577
Other income (expense):
Interest income		11,201
Interest expense		(24,980)
Gain / (Loss) on interest rate swaps and caps		(268)
Income before taxes		53,331
Income tax expense		(21,273)
Income (Loss) from Equity Method Investments		(117)
Intercompany Gains (Losses)		0
Nonoperating Income (Expense)		(14,164)
Net Income (Loss) Attributable to Parent		32,058
Parent Company
Revenues:
Servicing fee income	0
Other fee income	0
Total fee income	0
Gain on mortgage loans held for sale	0
Total revenues	0
Expenses and impairments:
Salaries, wages and benefits	0
General and administrative	0
Provision for loan losses	0
Loss on foreclosed real estate and other	0
Occupancy	0
Total expenses and impairments	0
Other income (expense):
Interest income	0
Interest expense	0
Gain / (Loss) on interest rate swaps and caps	0
Income before taxes	62,616
Income tax expense	0
Intercompany Gains (Losses)	62,616
Nonoperating Income (Expense)	62,616
Net Income (Loss) Attributable to Parent	$ 62,616

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Commitments and Contingencies

3 Months Ended

Mar. 31, 2013

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

Litigation and Regulatory Matters

In the ordinary course of business, Nationstar Inc. and its subsidiaries are routinely named as defendants in or parties to many pending and threatened legal actions and proceedings, including putative class actions and other litigation. These actions and proceedings are generally based on alleged violations of consumer protection, securities, employment, contract and other laws. The certification of any putative class action could substantially increase our exposure to damages. These actions and proceedings are generally based on alleged violations of consumer protection, securities, employment, contract and other laws, including the Fair Debt Collection Practices Act. Additionally, along with others in our industry, we are subject to repurchase claims and may continue to receive claims in the future, including through securitization vehicles and master servicing arrangements that we have acquired and from our Legacy Portfolio. Certain of the actual or threatened legal actions include claims for substantial compensatory, punitive and/or, statutory damages or claims for an indeterminate amount of damages.

Further, in the ordinary course of business the Company and its subsidiaries can be or are involved in governmental and regulatory examinations, information gathering requests, investigations and proceedings (both formal and informal), regarding the Company’s business, certain of which may result in adverse judgments, settlements, fines, penalties, injunctions or other relief. Such inquiries may include those into servicer foreclosure processes and procedures and lender-placed insurance. In particular, ongoing and other legal proceedings brought under state consumer protection statutes may result in a separate fine for each violation of the statute, which, particularly in the case of class action lawsuits, could result in damages substantially in excess of the amounts we earned form the underlying activities and that could have a material adverse effect on our liquidity and financial position.

The Company seeks to resolve all litigation and regulatory matters in the manner management believes is in the best interest of the Company and contests liability, allegations of wrongdoing and, where applicable, the amount of damages or scope of any penalties or other relief sought as appropriate in each pending matter. On at least a quarterly basis, the Company assesses its liabilities and contingencies in connection with outstanding legal and regulatory proceedings utilizing the latest information available. Where available information indicates that it is probable a liability has been incurred and the Company can reasonably estimate the amount of that loss an accrued liability is established. The actual costs of resolving these proceedings may be substantially higher or lower than the amounts accrued.

When a loss contingency is not both probable and estimable, the Company does not establish an accrued liability. As a litigation or regulatory matter develops, the Company, in conjunction with any outside counsel handling the matter, evaluates on an ongoing basis whether such matter presents a loss contingency that is probable and estimable. If, at the time of evaluation, the loss contingency is not both probable and estimable, the matter will continue to be monitored for further developments that would make such loss contingency both probable and estimable. Once the matter is deemed to be both probable and estimable, the Company will establish an accrued liability and record a corresponding amount to litigation related expense. The Company will continue to monitor the matter for further developments that could affect the amount of the accrued liability that has been previously established. Litigation related expense, which includes the fees paid to external legal service providers, of $3.5 million and $1.6 million for the three months ended March 31, 2013 and March 31, 2012 respectively, were included in general and administrative expense on the consolidated statements of income and comprehensive income.

For a number of matters for which a loss is probable or reasonably possible in future periods, whether in excess of a related accrued liability or where there is no accrued liability, the Company may be able to estimate a range of possible loss. In determining whether it is possible to provide an estimate of loss or range of possible loss, the Company reviews and evaluates its material litigation and regulatory matters on an ongoing basis, in conjunction with any outside counsel handling the matter. For those matters for which an estimate is possible, management currently believes the aggregate range of reasonably possible loss is $1.0 million to $4.8 million in excess of the accrued liability (if any) related to those matters. This estimated range of possible loss is based upon currently available information and is subject to significant judgment, numerous assumptions and known and unknown uncertainties. The matters underlying the estimated range will change from time to time, and actual results may vary substantially from the current estimate. Those matters for which an estimate is not possible are not included within the estimated range. Therefore, this estimated range of possible loss represents what management believes to be an estimate of possible loss only for certain matters meeting these criteria. It does not represent the Company's maximum loss exposure.

Based on current knowledge, and after consultation with counsel, management believes that the current legal accrued liability is appropriate, and the amount of any incremental liability arising from these matters is not expected to have a material adverse effect on the consolidated financial condition of the Company, although the outcome of such proceedings could be material to the Company’s operating results and cash flows for a particular period depending, on among other things, the level of the Company’s revenues or income for such period. However, in the event of significant developments on existing cases, it is possible that the ultimate resolution, if unfavorable, may be material to the Company’s consolidated financial statements.

Loan and Other Commitments

Nationstar enters into IRLCs with prospective borrowers whereby the Company commits to lend a certain loan amount under specific terms and interest rates to the borrower. Nationstar also enters into LPCs with prospective sellers. These loan commitments are treated as derivatives and are carried at fair value (See Note 10 - Derivative Financial Instruments).

Nationstar has certain MSRs related to approximately $28.2 billion of unpaid principal balance in reverse mortgage loans. As servicer for these reverse mortgage loans, among other things, the Company is obligated to make advances to the loan customers as required. At March 31, 2013, the Company’s maximum unfunded advance obligation related to these MSRs was approximately $4.6 billion. Upon funding any portion of these advances, the Company expects to securitize and sell the advances in transactions that will be accounted for as financing arrangements.

Other Contingencies

In June 2011, Nationstar entered into an agreement to subservice loans for a financial services company. Nationstar began to subservice these loans in July and August 2011. This subservicing agreement included, among other things, a loss incentive and sharing arrangement. Under this arrangement, Nationstar can earn incentive fees of up to $2.5 million for successfully mitigating losses within a specific subserviced population of loans. This incentive fee would be recognized when earned. For this same population of loans, Nationstar is subject to loss sharing under certain conditions. Should losses in this population of loans exceed a specified level, Nationstar would be required to share a portion of the losses on such loans up to a maximum of $10.0 million. Losses under this arrangement would be recognized at the point at which Nationstar determines that a liability is expected to be incurred. At March 31, 2013 and December 31, 2012, Nationstar has estimated no liability under this agreement.

During December 2009, Nationstar entered into a strategic relationship with a major mortgage market participant, which

contemplates, among other things, significant mortgage servicing rights and subservicing transfers to Nationstar upon terms to be determined. Under this arrangement, if certain delivery thresholds have been met, the market participant may require Nationstar to establish an operating division or newly created subsidiary with separate, dedicated employees within a specified timeline to service such mortgage servicing rights and subservicing. After a specified time period, this market participant may purchase the subsidiary at an agreed upon price. Since December 2010, all of the required delivery thresholds with this market participant have been met, but the market participant has not required the Company to establish an operating division or newly created subsidiary with separate, dedicated employees.

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Payables and Accrued Liabilities (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2013	Dec. 31, 2012
Payables and Accruals [Abstract]
MSR purchases payable	$ 865,487	$ 14,243
Mortgage insurance premiums and reserves	105,563	77,967
Payables to securitization trusts	19,195	7,946
Loans subject to repurchase from Ginnie Mae	74,645	72,156
Cancelled lease reserves	6,661	7,188
Servicing Liability	63,651	73,967
Legal and professional fees	13,815	27,860
Accrued bonus and payroll	27,077	58,083
Accrued interest	57,274	31,938
Government sponsored entities	55,740	27,071
Repurchase reserves	20,902	18,511
Reverse mortgage payables	113,601	103,068
Taxes	26,209	50,908
Lease Payable	27,170	29,553
Other	52,908	30,972
Total payables and accrued liabilities	$ 1,529,898	$ 631,431

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Nature of Business, Basis of Presentation and Material Transaction

3 Months Ended

Mar. 31, 2013

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Nature of Business, Basis of Presentation and Material Transaction

Nature of Business, Corporate Reorganization, Basis of Presentation and Material Transactions

Nature of Business

Nationstar Mortgage Holdings Inc. (Nationstar Inc. or the Company) is a Delaware corporation. Nationstar Inc. is a holding company that conducts no operating activities and owns no significant assets other than through its interests in its subsidiaries. Through its subsidiaries, Nationstar Inc. is engaged primarily in the servicing of residential mortgage loans for others and the origination and selling or securitization of single-family conforming mortgage loans to government-sponsored entities (GSE) or other third-party investors in the secondary market. Nationstar Mortgage LLC (Nationstar) is the Company's principal operating subsidiary.

Corporate Reorganization

On February 24, 2012, the Company filed a registration statement on Form S-1, for the offering of 19,166,667 shares of its common stock. The registration statement became effective on March 7, 2012. Under the terms of the offering, all of the equity interests in the Company transferred from FIF HE Holdings LLC to two direct, wholly-owned subsidiaries and the Company issued 19,166,667 shares of $0.01 par value common stock at an initial offering price of $14.00 per share. The offering transformed the Company into a publicly-traded company.

In conjunction with the initial public offering of Nationstar Inc., Nationstar became a wholly-owned indirect subsidiary of Nationstar Inc. Prior to the reorganization and initial public offering (Reorganization), Nationstar was a wholly-owned subsidiary of FIF HE Holdings LLC (FIF). Nationstar Inc. was formed solely for the purpose of reorganizing the structure of FIF and Nationstar so that the common stock issuer was a corporation rather than a limited liability company. As such, investors own common stock rather than equity interests in a limited liability company. The Reorganization has been accounted for as a reorganization under common control and, accordingly, there was no change in the basis of the assets and liabilities. As part of the Reorganization, FIF exchanged its equity in Nationstar for 70,000,000 shares of common stock of Nationstar Inc.

Basis of Presentation

The consolidated financial statements include the accounts of Nationstar Inc., its wholly-owned subsidiaries, and other entities in which the Company has a controlling financial interest, and those variable interest entities (VIEs) where Nationstar Inc.'s wholly-owned subsidiaries are the primary beneficiaries. Nationstar Inc. applies the equity method of accounting to investments when the entity is not a VIE and Nationstar Inc. is able to exercise significant influence, but not control, over the policies and procedures of the entity but owns less than 50% of the voting interests. Intercompany balances and transactions have been eliminated. Results of operations, assets and liabilities of VIEs are included from the date that Nationstar Inc. became the primary beneficiary through the date Nationstar Inc. ceases to be the primary beneficiary.

The interim consolidated financial statements are unaudited; however, in the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation of the results of the interim periods have been included. The consolidated interim financial statements of Nationstar Inc. have been prepared in accordance with generally accepted accounting principles for interim information and in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X as promulgated by the Securities and Exchange Commission (SEC). Accordingly, the financial statements do not include all of the information and footnotes required by accounting principles generally accepted in the United States (GAAP) for complete financial statements and should be read in conjunction with the audited consolidated financial statements and notes thereto included in Nationstar Inc.'s Annual Report on Form 10-K filed on March 15, 2013. The results of operations for the three month period ended March 31, 2013, are not necessarily indicative of the results that may be expected for the year ended December 31, 2013. Certain prior period amounts have been reclassified to conform to the current period presentation. Nationstar Inc. evaluated subsequent events through the date these interim consolidated financial statements were issued.

Material First Quarter Transactions

In January 2013, Nationstar entered into a mortgage servicing rights purchase and sale agreement (the Purchase Agreement) with a financial institution. Under the Purchase Agreement, the Company agreed to purchase the rights to service approximately 1.3 million residential mortgage loans with a total UPB of approximately $215 billion, and approximately $5.8 billion of related servicing advance receivables. Approximately 47% of these loans (by UPB) are owned, insured or guaranteed by Fannie Mae, Freddie Mac or Ginnie Mae, and the remaining 53% of these loans are non-conforming loans in private label securitizations.

The aggregate purchase price is approximately $7.1 billion, which is expected to be funded through a combination of cash on hand, the proceeds of a co-investment by Newcastle Investment Corp. (Newcastle), and certain funds managed by Fortress Investment Group LLC (Fortress), the proceeds of advance financing facilities, and/or other issuances of debt. On January 31, 2013, Nationstar closed on the MSRs and associated servicing advance receivables with respect to those loans owned, insured or guaranteed by Fannie Mae and Freddie Mac. On February 1, 2013, Nationstar closed on the MSRs and associated servicing advance receivables with respect to those loans owned, insured or guaranteed by Ginnie Mae. Subject to customary closing conditions, the Company expects to close on the majority of the remaining MSRs in stages during the second or third quarter of 2013. During February 2013, the Company boarded approximately $15.3 billion of the acquired agency portfolio balance with the remaining acquired Fannie Mae, Freddie Mac, and Ginnie Mae portfolios to be completed by June 2013. The remaining private label securitization portfolios are expected to board onto the servicing system through the third quarter of 2013.

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Consolidated Balance Sheets (Parenthetical) (USD $) In Thousands, except Share data, unless otherwise specified	Mar. 31, 2013	Dec. 31, 2012	Feb. 24, 2012
Allowance for loan losses of mortgage loans held for investment, subject to nonrecourse debt	$ 5,206	$ 4,390
Accumulated depreciation of property and equipment	$ 54,026	$ 48,806
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	300,000,000	300,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.01	$ 0.01	$ 0.01
Common stock, shares authorized	1,000,000,000	1,000,000,000
Common Stock, Shares issued	90,769,000	90,480,000
Common Stock, Shares outstanding	90,769,000	90,480,000

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Indebtedness

3 Months Ended

Mar. 31, 2013

Debt Disclosure [Abstract]

Indebtedness

Indebtedness

Notes Payable

A summary of the balances of notes payable for the dates indicated is presented below (in thousands).

	March 31, 2013				December 31, 2012
	Outstanding		Collateral Pledged		Outstanding		Collateral Pledged
Servicing Segment Notes Payable
MBS advance financing facility	$	174,965	$	192,278	$	185,817	$	206,622
Securities repurchase facility (2011)	11,774		55,603		11,774		55,603
2010-ABS advance financing facility	194,217		237,865		194,833		233,208
Nationstar Agency advance financing facility	575,035		608,663		476,091		549,284
MSR note	3,239		11,299		4,627		12,328
2012-AW agency advance financing facility	—		—		100,000		135,343
2012-C ABS advance financing facility	574,437		653,676		657,027		742,238
2012-R ABS advance financing facility	326,821		376,374		374,739		428,758
2012-W ABS advance financing facility	424,503		497,745		492,235		566,332
Reverse participations financing facility	104,799		127,424		65,943		76,455
MBS advance financing facility (2012)	60,012		68,992		—		—
Originations Segment Notes Payable
$750 million warehouse facility	495,751		517,002		245,287		285,281
$150 million warehouse facility	128,900		133,081		224,790		241,867
$750 million warehouse facility (2011)	197,257		204,617		356,104		371,836
$300 million warehouse facility (2009)	80,847		84,216		87,747		91,403
ASAP+ facility	57,329		55,704		124,572		124,596
Total notes payable	$	3,409,886	$	3,824,539	$	3,601,586	$	4,121,154

Servicing Segment Notes Payable

MBS advance financing facility - Nationstar has a one-year committed facility agreement with a GSE, under which Nationstar may transfer to the GSE certain servicing advance receivables against the transfer of funds by the GSE. This facility has the capacity to purchase up to $325.0 million in eligible servicing advance receivables. Effective April 1, 2013, this capacity increased to $775.0 million. The interest rate is based on LIBOR plus a spread of 2.50% to 4.00%. The maturity date of this facility is currently December 2013.

Securities repurchase facility (2011) - In December 2011, Nationstar entered into a securities repurchase facility with a financial services company. The master repurchase agreement (MRA) states that Nationstar may from time to time transfer to the financial services company eligible securities against the transfer of funds by the financial services company, with a simultaneous agreement by the financial services company to transfer such securities to Nationstar at a certain date, or on demand by Nationstar, against the transfer of funds from Nationstar. Additionally, the financial services company may elect to extend the transfer date for an additional 90 days at mutually agreed upon terms. The interest rate is based on LIBOR plus a margin of 3.50%. As of March 31, 2013, Nationstar has pledged the Company’s $55.6 million outstanding retained interest in the outstanding Nonrecourse debt—Legacy Assets securitization which was structured as a financing.

2010-ABS advance financing facility - In November 2010, Nationstar executed the 2010-ABS Advance Financing Facility with a financial institution. This facility has the capacity to purchase up to $300.0 million of advance receivables. The interest rate is based on LIBOR plus a spread of 3.00%. This facility matures in May 2014. This debt is nonrecourse to Nationstar.

Nationstar Agency advance financing facility - In January 2013, Nationstar amended and restated the Agency Advance Financing Facility with a financial institution. This facility has a variable funding note (VFN) with the capacity to borrow up to $600.0 million and the interest rate is based on LIBOR plus a spread of 1.20% to 3.75% depending upon the class of the note. The maturity date of the VFN is October 2013. Nationstar also issued $300.0 million in term notes to institutional investors. The notes have a weighted average interest rate of 1.46% and a weighted average term of 3 years. The VFN and the term notes are secured by servicing advance receivables and the financing is nonrecourse to Nationstar.

MSR note - In connection with an October 2009 MSR acquisition, Nationstar executed a four-year note agreement with a GSE. As collateral for this note, Nationstar has pledged Nationstar’s rights, title, and interest in the acquired servicing portfolio. The interest rate is based on LIBOR plus 2.50%. The maturity date of this facility is October 2013.

2012-AW Agency advance financing facility - In June 2012, Nationstar executed the 2012-AW Agency Advance Financing Facility with a financial institution. This facility had the capacity to borrow up to $100.0 million and the interest rate was based on LIBOR plus a spread of 2.50%. The maturity date of this facility was June 2013. This facility was secured by servicing advance receivables and was nonrecourse to Nationstar. On January 31, 2013, Nationstar terminated this revolving financing facility and repaid all outstanding balances as of the termination date.

2012-C ABS advance financing facility - In June 2012, Nationstar executed the 2012-C ABS Advance Financing Facility with a financial institution. This facility has the capacity to borrow up to $700.0 million and the interest rate is based on LIBOR plus a spread of 3.25% to 4.25%. The maturity date of this facility is November 2013. This facility is secured by servicing advance receivables and is nonrecourse to Nationstar.

2012-R ABS advance financing facility - In June 2012, Nationstar executed the 2012-R ABS Advance Financing Facility with a financial institution. This facility has the capacity to borrow up to $400.0 million and the interest rate is based on LIBOR plus a spread of 3.37% to 8.00%. The maturity date of this facility is June 2014. This facility is secured by servicing advance receivables and is nonrecourse to Nationstar.

2012-W ABS advance financing facility - In June 2012, Nationstar executed the 2012-W ABS Advance Financing Facility with a financial institution. This facility has the capacity to borrow up to $500.0 million and the interest rate is based on LIBOR plus a spread of 3.75%. The maturity date of this facility is June 2013. This facility is secured by servicing advance receivables and is nonrecourse to Nationstar.

Reverse participations and max claim buyouts financing facility - In June 2012, Nationstar executed a reverse participations and max claim buyouts financing facility with a financial institution. This facility has capacity to borrow up to $150.0 million and the interest rate is based on LIBOR plus a spread of 4.00%. The maturity date of this facility is June 2014. This facility is partially secured by reverse mortgage loans.

MBS advance financing facility (2012) - In December 2012, Nationstar executed a MBS Advance Financing Facility with a financial institution. This facility has the capacity to borrow up to $125.0 million through April 14, 2013, $100.0 million for the period April 15, 2013 through July 14, 2013 and $50.0 million for any date thereafter. The interest rate is LIBOR plus a spread of 3.50%. The maturity date of this facility is January 2014. This facility is secured by servicing advance receivables.

Originations Segment Notes Payable

$750 million warehouse facility - In February 2010, as amended, Nationstar executed a MRA with a financial institution, which will expire in January 2014. The MRA states that from time to time Nationstar may enter into transactions, for an aggregate amount of $750.0 million (which amount was increased from $375.0 million in January 2013), in which Nationstar agrees to transfer to the same financial institution certain mortgage loans against the transfer of funds by the same financial institution, with a simultaneous agreement by the same financial institution to transfer such mortgage loans to Nationstar at a date certain, or on demand by Nationstar, against the transfer of funds from Nationstar. The interest rate is based on LIBOR plus a spread ranging from 1.75% to 2.50%.

$150 million warehouse facility - Nationstar has a MRA with a financial services company, as amended, which will expire in April 2014. The facility has a committed amount of $150.0 million (which amount was increased to $300.0 million in April 2013) and an uncommitted amount of $150.0 million (which amount was increased to $300.0 million in April 2013) that can be granted at the discretion of the financial institution. The MRA states that from time to time Nationstar may enter into transactions in which Nationstar agrees to transfer to the financial services company certain mortgage loans or MBS against the transfer of funds by the financial services company, with a simultaneous agreement by the financial services company to transfer such mortgage loans or MBS to Nationstar at a certain date, or on demand by Nationstar, against the transfer of funds from Nationstar. The interest rate is based on LIBOR plus a spread of 0.75% - 3.50%.

$750 million warehouse facility (2011) - In March 2011, as amended, Nationstar executed an MRA with a financial institution, under which Nationstar may enter into transactions, for an aggregate amount of $750.0 million in which Nationstar agrees to transfer to the same financial institution certain mortgage loans and certain securities against the transfer of funds by the same financial institution, with a simultaneous agreement by the same financial institution to transfer such mortgage loans and securities to Nationstar at a date certain, or on demand by Nationstar, against the transfer of funds from Nationstar. The maturity is August 2013 with the interest rate based on LIBOR plus a spread of 2.25% to 3.00%, which varies based on the underlying transferred collateral.

$300 million warehouse facility (2009) - In October 2009, as amended, Nationstar executed a MRA with a financial institution. This MRA states that from time to time Nationstar may enter into transactions, for an aggregate amount of $300.0 million (which amount was increased from $100.0 million in March 2013), in which Nationstar agrees to transfer to the financial institution certain mortgage loans against the transfer of funds by the financial institution, with a simultaneous agreement by the financial institution to transfer such mortgage loans to Nationstar at a certain date, or on demand by Nationstar, against the transfer of funds from Nationstar. The interest rate is based on LIBOR plus a spread of 2.50%. The maturity date of this MRA with the financial institution is March 2014.

ASAP + facility - During 2009, Nationstar began executing As Soon As Pooled Plus agreements with a GSE, under which Nationstar transfers to the GSE eligible mortgage loans that are to be pooled into the GSE MBS against the transfer of funds by the GSE. The interest rate is based on LIBOR plus a spread of 1.50%. These agreements typically have a maturity of up to 45 days.

Unsecured Senior Notes

A summary of the balances of unsecured senior notes is presented below (in thousands):

	March 31, 2013		December 31, 2012
$285 million face value, 10.875% interest rate payable semi-annually, due April 2015	$	282,046	$	281,676
$375 million face value, 9.625% interest rate payable semi-annually, due May 2019	379,896		380,232
$400 million face value, 7.875% interest rate payable semi-annually, due October 2020	400,704		400,727
$600 million face value, 6.500%, interest rate payable semi-annually, due July 2021	606,500		—
Total	$	1,669,146	$	1,062,635

In February 2013, Nationstar completed the offering of $400.0 million of unsecured senior notes, with a maturity date of July 2021. These notes were issued at par. In March 2013, Nationstar completed an additional offering of $200.0 million of the unsecured senior notes due July 2021. These notes were issued with an issue premium of $6.5 million for net cash proceeds before issuance costs of $606.5 million. Under the terms of these unsecured senior notes, we pay interest semiannually to the note holders at an interest rate of 6.500%. These unsecured senior notes were issued in a private placement and have not been registered under the Securities Act of 1933, as amended.

The indentures for the unsecured senior notes contain various covenants and restrictions that limit the Company's, Nationstar's, or certain of its subsidiaries’, ability to incur additional indebtedness, pay dividends, make certain investments, create liens, consolidate, merge or sell substantially all of their assets, or enter into certain transactions with affiliates. The indentures contain certain events of default, including (subject, in some cases, to customary cure periods and materiality thresholds) defaults based on (i) the failure to make payments under the indenture when due, (ii) breach of covenants, (iii) cross-defaults to certain other indebtedness, (iv) certain bankruptcy or insolvency events, (v) material judgments and (vi) invalidity of material guarantees.

The ratios included in the indentures for the senior notes are incurrence-based compared to the customary ratio covenants that are often found in credit agreements that require a company to maintain a certain ratio.

The expected maturities of Nationstar's senior unsecured notes based on contractual maturities are as follows (in thousands).

Year	Amount
2014	$	—
2015	285,000
2016	—
2017	—
2018	—
Thereafter	1,375,000
Total	$	1,660,000

Legacy Asset and Other Financing

Nonrecourse Debt–Legacy Assets

In November 2009, Nationstar completed the securitization of approximately $222.0 million of ABS, which was structured as a secured borrowing. This structure resulted in Nationstar carrying the securitized loans as mortgages on Nationstar’s consolidated balance sheet and recognizing the asset-backed certificates acquired by third parties as nonrecourse debt, totaling approximately $98.4 million and $100.6 million at March 31, 2013, and December 31, 2012, respectively. The principal and interest on these notes are paid using the cash flows from the underlying mortgage loans, which serve as collateral for the debt. The interest rate paid on the outstanding securities is 7.50%, which is subject to an available funds cap. The total outstanding principal balance on the underlying mortgage loans serving as collateral for the debt was approximately $328.5 million and $336.9 million at March 31, 2013 and December 31, 2012, respectively. Accordingly, the timing of the principal payments on this nonrecourse debt is dependent on the payments received on the underlying mortgage loans. The unpaid principal balance on the outstanding notes was $114.4 million and $117.1 million at March 31, 2013 and December 31, 2012, respectively.

Excess Spread Financing Debt at Fair Value

In conjunction with Nationstar's acquisition of certain mortgage servicing rights on various pools of residential mortgage loans (the Portfolios), Nationstar has entered into sale and assignment agreements which are treated as financings with certain entities formed by Newcastle in which Newcastle and/or certain funds managed by Fortress own an interest. Nationstar, in transactions accounted for as financing arrangements, sold to such entities the right to receive a specified percentage of the excess cash flow generated from the Portfolios after receipt of a fixed basic servicing fee per loan.

Nationstar retains all ancillary income associated with servicing the Portfolios and the remaining portion of the excess cash flow after receipt of the fixed basic servicing fee. Nationstar continues to be the servicer of the Portfolios and provides all servicing and advancing functions. Newcastle has no prior or ongoing obligations associated with the Portfolios.

Contemporaneous with the above, Nationstar entered into refinanced loan agreements with Newcastle. Should Nationstar refinance any loan in the Portfolios, subject to certain limitations, Nationstar will be required to transfer the new loan or a replacement loan of similar economic characteristics into the Portfolios. The new or replacement loan will be governed by the same terms set forth in the sale and assignment agreement described above.

Nationstar has elected fair value accounting for these financing agreements.The total carrying amount of the outstanding excess spread financing agreements was $498.9 million and $288.1 million at March 31, 2013 and December 31, 2012, respectively.

The following table shows the hypothetical effect on fair value of excess spread financing using various unfavorable variations of the expected levels of certain key assumptions used in valuing these liabilities at the dates indicated (in thousands):

	Discount Rate				Total Prepayment Speeds				Credit Losses
	100 bps Adverse Change		200 bps Adverse Change		10% Adverse Change		20% Adverse Change		10% Adverse Change		20% Adverse Change
March 31, 2013
Excess spread financing	$	16,647	$	31,505	$	43,956	$	63,970	$	9,144	$	13,937
December 31, 2012
Excess spread financing	$	7,978	$	16,404	$	10,654	$	22,240	$	5,538	$	11,075

As the fair value on the outstanding excess spread financing is linked to the future economic performance of certain acquired MSRs, any adverse changes in the acquired MSRs would inherently benefit the net carrying amount of the excess spread financing, while any beneficial changes in certain key assumptions used in valuing the acquired MSRs would negatively impact the net carrying amount of the excess spread financing.

These sensitivities are hypothetical and should be evaluated with care. The effect on fair value of a 10% variation in assumptions generally cannot be determined because the relationship of the change in assumptions to the fair value may not be linear. Additionally, the impact of a variation in a particular assumption on the fair value is calculated while holding other assumptions constant. In reality, changes in one factor may lead to changes in other factors (e.g., a decrease in total prepayment speeds may result in an increase in credit losses), which could impact the above hypothetical effects.

Participating Interest Financing

Participating interest financing represent the issuance of pools of Home Equity Conversion Mortgage Backed Securities (HMBS) to third-party security holders which are guaranteed by certain GSEs. Nationstar has accounted for the transfer of these advances in the related Home Equity Conversion Mortgages (HECM) loans as secured borrowings, retaining the initial reverse mortgage interests on its balance sheet, and recording the pooled HMBS as participating interest financing liabilities on the Company’s balance sheet. Monthly cash flows generated from the HECM loans are used to service the HMBS. The interest rate is based on the underlying HMBS rate with a range of 0.53% to 7.17%. The participating interest financing was $745.3 million and $580.8 million at March 31, 2013 and December 31, 2012, respectively.

Financial Covenants

As of March 31, 2013, Nationstar was in compliance with its covenants on its borrowing arrangements and credit facilities. These covenants generally relate to Nationstar’s tangible net worth, liquidity reserves, and leverage requirements.

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Commitments and Contingencies - Loan and Other Commitments (Details) (Reverse Mortgages, USD $) In Billions, unless otherwise specified	Mar. 31, 2013
Reverse Mortgages
Mortgage Servicing Rights [Line Items]
Principal amount outstanding on loans managed and securitized	$ 28.2
Unfunded advance obligations	$ 4.6

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Capital Requirements (Details) (USD $) In Millions, unless otherwise specified	Mar. 31, 2013
Mortgage Banking [Abstract]
Minimum Net Worth Required for Compliance	$ 532.9
Minimum Tangible Net Worth Required for Compliance	$ 350.0

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Document and Entity Information	3 Months Ended
	Mar. 31, 2013	Apr. 30, 2013
Document and Entity Information [Abstract]
Entity Registrant Name	Nationstar Mortgage Holdings Inc.
Entity Central Index Key	0001520566
Document Type	10-Q
Document Period End Date	Mar. 31, 2013
Amendment Flag	false
Document Fiscal Year Focus	2013
Document Fiscal Period Focus	Q1
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		90,570,864

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General and Administrative Expenses

3 Months Ended

Mar. 31, 2013

General and Administrative Expense [Abstract]

General and Administrative Expenses

General and Administrative Expenses

General and administrative expenses consist of the following for the dates indicated (in thousands):

	For the three months ended
	March 31, 2013		March 31, 2012
Servicing	$	47,772	$	11,079
Outsourcing	19,517		2,056
Legal and professional fees	17,333		5,102
Loan processing charges	11,564		1,065
Depreciation and amortization	3,901		1,531
Postage	3,850		1,314
Telecommunications and technology	3,304		1,251
Travel	3,229		821
Equipment	3,167		1,320
Dues and fees	2,870		918
Advertising	2,112		742
Stationary and office supplies	1,558		994
Other	5,465		919
Total general and administrative expenses	$	125,642	$	29,112

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Income Taxes (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012	Dec. 31, 2012
Income Tax Disclosure [Abstract]
Valuation allowance on deferred tax asset			$ (45,600)
Income Tax Expense (Benefit)	38,377	3,145
Pretax income	$ 100,993	$ 53,331

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Share-based Compensation Vesting Schedule of Rrestricted Stock (Details) (2012 Plan, Restricted Stock) In Thousands, unless otherwise specified	Mar. 31, 2013
Share-based Compensation Arrangement by Share-based Payment Award
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested and Expected to Vest, Number	923
Current year vesting [Member]
Share-based Compensation Arrangement by Share-based Payment Award
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested and Expected to Vest, Number	20
Vesting in Year One [Member]
Share-based Compensation Arrangement by Share-based Payment Award
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested and Expected to Vest, Number	413
Vesting in Year Two [Member]
Share-based Compensation Arrangement by Share-based Payment Award
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested and Expected to Vest, Number	413
Vesting in Year Three [Member]
Share-based Compensation Arrangement by Share-based Payment Award
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested and Expected to Vest, Number	77

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Unaudited Consolidated Statements of Operations and Comprehensive Income (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Revenues:
Servicing fee income	$ 197,596	$ 86,190
Other fee income	44,879	7,370
Total fee income	242,475	93,560
Gain on mortgage loans held for sale	188,587	70,512
Total revenues	431,062	164,072
Expenses and impairments:
Salaries, wages and benefits	134,987	61,665
General and administrative	125,642	29,112
Provision for loan losses	915	753
Loss on foreclosed real estate	1,092	(2,265)
Occupancy	5,935	2,782
Total expenses and impairments	268,571	96,577
Other income (expense):
Interest income	29,608	11,201
Interest expense	(92,374)	(24,980)
Loss on interest rate swaps and caps	1,268	(268)
Total other income (expense)	(61,498)	(14,164)
Income before taxes	100,993	53,331
Income tax expense	38,377	3,145
Net income	62,616	50,186
Net Income (Loss) Attributable to Noncontrolling Interest	$ 0	$ 0
Earnings per share:
Basic earnings per share (in dollars per share)	$ 0.70	$ 0.67
Diluted earnings per share (in dollars per share)	$ 0.70	$ 0.67
Weighted average shares:
Basic (shares)	89,293	74,388
Dilutive effect of stock awards (shares)	649	173
Diluted (shares)	89,942	74,561
Dividends declared per share (in dollars per share)	$ 0	$ 0

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Mortgage Loans Held for Sale and Investment

3 Months Ended

Mar. 31, 2013

Mortgage Loans Held for Sale and Investment [Abstract]

Mortgage Loans Held for Sale and Investment

Mortgage Loans Held for Sale and Investment

Mortgage loans held for sale

Nationstar maintains a strategy of originating mortgage loan products primarily for the purpose of selling to GSEs or other third party investors in the secondary market. Generally, all newly originated mortgage loans held for sale are delivered to third-party purchasers or securitized shortly after origination.

Nationstar has elected to measure newly originated prime residential mortgage loans held for sale at fair value, as permitted under ASC 825, Financial Instruments. Nationstar estimates fair value by evaluating a variety of market indicators, including recent trades and outstanding forward sales commitments, calculated on an aggregate basis (see Note 14 – Fair Value Measurements). In connection with Nationstar's election to measure mortgage loans held for sale at fair value, Nationstar is not permitted to defer the loan origination fees, net of direct loan origination costs associated with these loans.

Mortgage loans held for sale consist of the following (in thousands):

	March 31, 2013		December 31, 2012
Mortgage loans held for sale – unpaid principal balance	$	1,646,387	$	1,426,182
Mark-to-market adjustment	57,322		54,355
Total mortgage loans held for sale	$	1,703,709	$	1,480,537

Nationstar had no mortgage loans held for sale on a nonaccrual status at March 31, 2013 or December 31, 2012.

A reconciliation of the changes in mortgage loans held for sale to the amounts presented in the consolidated statements of cash flows for the dates indicated is presented in the following table (in thousands):

	For the three months ended
	March 31, 2013			March 31, 2012
Mortgage loans held for sale – beginning balance	$	1,480,537		$	458,626
Mortgage loans originated and purchased, net of fees	3,781,116			1,189,942
Proceeds on sale of and payments of mortgage loans held for sale	(3,549,535		)	(1,270,007		)
Transfer of mortgage loans held for sale to held for investment due to bankruptcy and pending foreclosures	(8,409		)	—
Mortgage loans held for sale – ending balance	$	1,703,709		$	378,561

Mortgage loans held for investment, subject to nonrecourse debt - Legacy Assets, net

Mortgage loans held for investment, subject to nonrecourse debt – Legacy Assets, net principally consist of nonconforming or subprime mortgage loans securitized which serve as collateral for the issued debt. These loans were transferred on October 1, 2009 from mortgage loans held for sale at fair value on the transfer date, as determined by the present value of expected future cash flows, with no valuation allowance recorded. The difference between the undiscounted cash flows expected and the investment in the loan is recognized as interest income on a level-yield method over the life of the loan. Contractually required payments for interest and principal that exceed the undiscounted cash flows expected at transfer are not recognized as a yield adjustment or as a loss accrual or a valuation allowance. Increases in expected cash flows subsequent to the transfer are recognized prospectively through adjustment of the yield on the loans over the remaining life. Decreases in expected cash flows subsequent to transfer are recognized as a valuation allowance.

An allowance for loan losses is established by recording a provision for loan losses in the consolidated statement of income and comprehensive income when management believes a loss has occurred on a loan held for investment. When management determines that a loan held for investment is partially or fully uncollectible, the estimated loss is charged against the allowance for loan losses. Recoveries on losses previously charged to the allowance are credited to the allowance at the time the recovery is collected.

Nationstar accounts for the loans that were transferred to held for investment from held for sale during 2009 in a manner similar to ASC 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality. At the date of transfer, management evaluated such loans to determine whether there was evidence of deterioration of credit quality since acquisition and if it was probable that Nationstar would be unable to collect all amounts due according to the loan’s contractual terms. The transferred loans were aggregated into separate pools of loans based on common risk characteristics (loan delinquency). Nationstar considers expected prepayments, and estimates the amount and timing of undiscounted expected principal, interest, and other cash flows for each aggregated pool of loans. The determination of expected cash flows utilizes internal inputs such as prepayment speeds and credit losses. These internal inputs require the use of judgment and can have a significant impact on the accretion of income and/or valuation allowance. Nationstar determines the excess of the pool’s scheduled contractual principal and contractual interest payments over all cash flows expected as of the transfer date as an amount that should not be accreted (nonaccretable difference). The remaining amount is accreted into interest income over the remaining life of the pool of loans (accretable yield).

Over the life of the transferred loans, management continues to estimate cash flows expected to be collected. Nationstar evaluates at the balance sheet date whether the present value of the loans determined using the effective interest rates has decreased, and if so, records an allowance for loan loss. The present value of any subsequent increase in the transferred loans cash flows expected to be collected is used first to reverse any existing allowance for loan loss related to such loans. Any remaining increase in cash flows expected to be collected are used to adjust the amount of accretable yield recognized on a prospective basis over the remaining life of the loans.

Nationstar accounts for its allowance for loan losses for all other mortgage loans held for investment in accordance with ASC 450-20, Loss Contingencies. The allowance for loan losses represents management’s best estimate of probable losses inherent in the loans held for investment portfolio. Mortgage loans held for investment portfolio is comprised primarily of large groups of homogeneous residential mortgage loans. These loans are evaluated based on the loan’s present delinquency status. The entire allowance is available to absorb probable credit losses from the entire held for investment portfolio.

Mortgage loans held for investment, subject to nonrecourse debt—Legacy Assets, net as of the dates indicated include (in thousands):

	March 31, 2013			December 31, 2012
Mortgage loans held for investment, subject to nonrecourse debt - Legacy Assets, net – unpaid principal balance	$	348,822		$	354,154
Transfer discount
Accretable	(18,889		)	(19,749		)
Non-accretable	(88,812		)	(91,108		)
Allowance for loan losses	(5,206)			(4,390		)
Total mortgage loans held for investment, subject to nonrecourse debt - Legacy Assets, net	$	235,915		$	238,907

The changes in accretable yield on loans transferred to mortgage loans held for investment, subject to nonrecourse debt- Legacy Assets were as follows (in thousands):

	Three months ended March 31, 2013			Year ended December 31, 2012
Accretable Yield
Balance at the beginning of the period	$	19,749		$	22,392
Additions	—			—
Accretion	(852		)	(3,548		)
Reclassifications from (to) nonaccretable discount	(8		)	905
Disposals	—			—
Balance at the end of the period	$	18,889		$	19,749

Nationstar may periodically modify the terms of any outstanding mortgage loans held for investment, subject to nonrecourse debt-Legacy Assets, net for loans that are either in default or in imminent default. Modifications often involve reduced payments by borrowers, modification of the original terms of the mortgage loans, forgiveness of debt and/or increased servicing advances. As a result of the volume of modification agreements entered into, the estimated average outstanding life in this pool of mortgage loans has been extended. Nationstar records interest income on the transferred loans on a level-yield method. To maintain a level-yield on these transferred loans over the estimated extended life, Nationstar reclassified approximately $0.9 million for the year ended December 31, 2012 from nonaccretable discount. Furthermore, Nationstar considers the decrease in principal, interest, and other cash flows expected to be collected arising from the transferred loans as an impairment. Nationstar recorded provisions for loan losses of $0.9 million for the three months ended March 31, 2013, and $0.8 million for the three months ended March 31, 2012.

Nationstar collectively evaluates all mortgage loans held for investment, subject to nonrecourse debt-Legacy Assets, net for impairment. The changes in the allowance for loan losses on mortgage loans held for investment, subject to nonrecourse debt-Legacy Assets, net were as follows (in thousands) for the dates indicated:

	Three months ended March 31, 2013
	Performing			Non-Performing			Total
Balance at the beginning of the period	$	771		$	3,619		$	4,390
Provision for loan losses	90			825			915
Charge-offs	(55		)	(44		)	(99		)
Balance at the end of the period	$	806		$	4,400		$	5,206
Ending balance – Collectively evaluated for impairment	$	266,854		$	81,968		$	348,822

	Year ended December 31, 2012
	Performing			Non-Performing			Total
Balance at the beginning of the period	$	1,641		$	4,183		$	5,824
Provision for loan losses	1,365			525			1,890
Recoveries on loans previously charged-off	—			—			—
Charge-offs	(2,235		)	(1,089		)	(3,324		)
Balance at the end of the period	$	771		$	3,619		$	4,390
Ending balance – Collectively evaluated for impairment	$	260,219		$	93,935		$	354,154

Loan delinquency and loan-to-value ratio (LTV) are common credit quality indicators that Nationstar monitors and utilizes in its evaluation of the adequacy of the allowance for loan losses, of which the primary indicator of credit quality is loan delinquency. LTV refers to the ratio of comparing the loan’s unpaid principal balance to the property’s collateral value. Loan delinquencies and unpaid principal balances are updated monthly based upon collection activity. Collateral values are updated from third-party providers on a periodic basis. The collateral values used to derive the LTVs shown below were obtained at various dates, but the majority were within the last twenty-four months. For an event requiring a decision based at least in part on the collateral value, Nationstar takes its last known value provided by a third party and then adjusts the value based on the applicable home price index.

The following table provides the outstanding unpaid principal balance of Nationstar’s mortgage loans held for investment by credit quality indicators as of dates indicated. Performing loans refer to loans that are less than 90 days delinquent. Non-performing loans refer to loans that are greater than 90 days delinquent.

	March 31, 2013		December 31, 2012
	(in thousands)
Credit Quality by Delinquency Status
Performing	$	266,854	$	260,219
Non-Performing	81,968		93,935
Total	$	348,822	$	354,154
Credit Quality by Loan-to-Value Ratio
Less than 60	$	38,677	$	39,436
Less than 70 and more than 60	16,685		16,581
Less than 80 and more than 70	22,954		20,890
Less than 90 and more than 80	26,521		27,988
Less than 100 and more than 90	30,918		32,570
Greater than 100	213,067		216,689
Total	$	348,822	$	354,154

Reverse mortgage interests

Reverse mortgages (known as Home Equity Conversion Mortgages or HECMs) provide seniors (62 and older) with a loan secured by their home. During 2012, Nationstar acquired reverse mortgage servicing rights and funded but unsecuritized advances from third-parties. Nationstar recorded the assets acquired and obligations assumed at relative fair value on the acquisition date, which included the funded advances and a servicing asset or liability, net of cash paid or received. Any premium or discount associated with the recording of the funded advances is accreted into interest income as the underlying HECMs are liquidated.

As part of the acquisition of the reverse mortgage servicing rights, Nationstar is obligated in its capacity as servicer to fund future borrower advances, which include fees paid to taxing authorities for borrowers' unpaid taxes and insurance, mortgage insurance premiums and payments made to borrowers for line of credit draws on reverse mortgages. In addition, Nationstar capitalizes the servicing fees it earns for servicing the reverse mortgage interests. All advances funded by Nationstar and the acquired funded advances are recorded as reverse mortgage interests on the Company's consolidated balance sheet. Nationstar includes the cash outflow from funding these advances as operating activities and the securitization cash inflow as a financing activity in the consolidated statement of cash flows.

In February 2013, Nationstar acquired certain fixed and adjustable rate reverse mortgage loans with an unpaid principal balance totaling $83.1 billion for a purchase price of $50.2 million. In conjunction with this acquisition, Nationstar entered into an agreement with NIC Reverse Loan LLC, a subsidiary of Newcastle, to sell a participating interest of the acquired reverse mortgage loans. Both Nationstar and NIC Reverse Loan LLC are entitled to the related percentage interest of all amounts received with respect to the reverse mortgage loans, net of payments of servicing fees and the reimbursement to Nationstar of servicing advances. Nationstar receives a fixed payment per loan for servicing these reverse mortgage loans. Nationstar records these reverse mortgage loans as reverse mortgage interests on the Company's consolidated balance sheet.

Nationstar periodically securitizes certain of these funded advances through issuance of Home Equity Conversion Mortgage Backed Securities (HMBS) to third-party security holders which are guaranteed by certain GSEs. These transfers of funded advances into HMBS are accounted for as secured borrowings with the HMBS presented as participating interest financing on the Company's consolidated balance sheet.

Nationstar receives a monthly servicing fee, which is recorded as either interest income or servicing fee income on the consolidated statement of income and comprehensive income based upon if the related advance was either funded by or acquired by Nationstar. Nationstar accounts for outstanding and future reverse mortgage interests as financing receivables in accordance with ASC 310, Receivables. Interest income is accrued monthly based upon the borrower interest rate applied to the HECM outstanding principal balance of reverse mortgage interests. Interest income and other unpaid taxes and fees are capitalized as part of the outstanding principal balance. Interest expense on the participating interest financing is accrued monthly based upon the underlying HMBS rates and is recorded to interest expense in the consolidated statement of income and comprehensive income.

These advances include due and payable advances, which are recovered upon the sale of the subject property, and defaulted advances that can be securitized and sold. As of March 31, 2013 and December 31, 2012, Nationstar had $978.7 million and $750.3 million, respectively, in outstanding reverse mortgage interests.When Nationstar determines that a loss on the advance balance is probable and that the carrying balance may be partially or fully uncollectible, an allowance for loan loss is established by recording a provision for loan losses in the consolidated statement of income and comprehensive income.

Reverse mortgage interests as of the dates indicated include (in thousands):

	March 31, 2013			December 31, 2012
UPB of advances previously securitized by Nationstar	$	695,723		$	542,037
UPB of advances unsecuritized	283,491			208,699
Allowance for losses - reverse mortgage interests	(562		)	(463		)
Total reverse mortgage interests	$	978,652		$	750,273

Nationstar collectively evaluates all reverse mortgage interest assets for impairment. Nationstar recorded a provision for loan losses related to its reverse mortgage interests of $0.6 million for the three months ended March 31, 2013 and $0.5 million for the year ended December 31, 2012.

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Accounts Receivable

3 Months Ended

Mar. 31, 2013

Receivables [Abstract]

Accounts Receivable

Accounts Receivable

Accounts receivable consist primarily of accrued interest receivable on mortgage loans and securitizations, collateral deposits on surety bonds, and advances made to nonconsolidated securitization trusts and various taxing authorities, as required under various servicing agreements related to delinquent loans, which are ultimately repaid from the securitization trusts.

Nationstar acquires servicer advances in conjunction with the acquisition of mortgage servicing rights. Acquired servicer advances are recorded at their relative fair value amounts on the acquisition date, and any recorded discounts are accreted into interest income on a modified cost recovery method as the related servicer advances are recovered either through repayment from the borrower, liquidation of the underlying mortgage loans, or through a modification and recovery of the outstanding servicer advance balance from the securitization trust.

Accounts receivable consist of the following (in thousands):

	March 31, 2013		December 31, 2012
Servicer advances, net of purchase discount	$	3,351,989	$	2,800,690
Accrued servicing fees	101,349		90,231
Receivables from trusts	30,398		39,029
Reverse mortgage - other	13,171		28,448
Accrued interest	3,920		3,801
Other	114,000		81,407
Total accounts receivable	$	3,614,827	$	3,043,606

In conjunction with Nationstar's June 2012 acquisition of mortgage servicing rights from Aurora Bank FSB and Aurora Loan Services LLC (collectively Aurora), the Company acquired approximately $1.7 billion of servicer advances. Based on the acquisition date relative fair values of these acquired servicer advances, Nationstar recorded an $81.8 million purchase discount. Nationstar accretes this purchase discount into interest income as the related servicer advances are recovered. During the three months ended March 31, 2013, the Company accreted $6.1 million of the purchase discount from recovered servicer advances. Nationstar did not record any accretion of purchase discount from recovered servicer advances during the three months ended March 31, 2012.

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Capital Requirements

3 Months Ended

Mar. 31, 2013

Mortgage Banking [Abstract]

Capital Requirements

Capital Requirements

Certain of Nationstar’s secondary market investors require various capital adequacy requirements, as specified in the respective selling and servicing agreements. To the extent that these mandatory, imposed capital requirements are not met, Nationstar’s secondary market investors may ultimately terminate Nationstar’s selling and servicing agreements, which would prohibit Nationstar from further originating or securitizing these specific types of mortgage loans. In addition, these secondary market investors may impose additional net worth or financial condition requirements based on an assessment of market conditions or other relevant factors.

Among Nationstar’s various capital requirements related to its outstanding selling and servicing agreements, the most restrictive of these requires Nationstar to maintain a minimum adjusted net worth balance of $532.9 million. As of March 31, 2013, Nationstar was in compliance with all of its selling and servicing capital requirements.

Additionally, Nationstar is required to maintain a minimum tangible net worth of at least $350.0 million as of each quarter-end related to its outstanding Master Repurchase Agreements on its outstanding repurchase facilities. As of March 31, 2013, Nationstar was in compliance with these minimum tangible net worth requirements.

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Income Taxes

3 Months Ended

Mar. 31, 2013

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

Income tax expense was as follows (in thousands):

	For three months ended
	March 31, 2013			March 31, 2012
Current
Federal	$	21,851		$	2,794
State	2,681			351
	24,532			3,145
Deferred
Federal	12,457			—
State	1,388			—
	13,845			—
Total	$	38,377		$	3,145
Effective tax rate	38.0		%	5.9		%

The financial statements for the period January 1, 2012 up to the Reorganization do not include income tax expense or benefit or any current or deferred income tax assets or liabilities. Nationstar Inc.'s corporate subsidiaries were subject to income taxes prior to the Reorganization, however, income tax expense (primarily state) and related tax liabilities were not material for presentation purposes.

Net deferred tax assets totaled $9.9 million at March 31, 2013 and $23.7 million at December 31, 2012. A valuation allowance of $45.6 million was recorded against deferred tax assets at December 31, 2012 and March 31, 2013 as management believes that it is more likely than not that not all of the deferred tax assets will be realized.

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Fair Value Measurements - Level 3 Reconciliation (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended	12 Months Ended
	Mar. 31, 2013	Dec. 31, 2012
Excess Spread Financing
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance	$ 288,089	$ 44,595
Transfers into Level 3		0
Transfers out of Level 3		0
Total gains or losses included in earnings	23,891	10,683
Total gains or losses included in other comprehensive income	0	0
Purchases, issuances, sales and settlements
Purchases	0	0
Issuances	207,581	272,676
Sales	0	0
Settlements	20,655	(39,865)
Ending balance	498,906	288,089
Mortgage Servicing Rights
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance	635,860	251,050
Transfers into Level 3	0	0
Transfers out of Level 3	0	0
Total gains or losses included in earnings	(9,659)	(68,242)
Total gains or losses included in other comprehensive income	0	0
Purchases, issuance, sales and settlements
Purchases	632,174	394,445
Issuances	31,268	58,607
Sales	0	0
Settlements	0	0
Ending balance	$ 1,289,643	$ 635,860

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Payables and Accrued Liabilities

3 Months Ended

Mar. 31, 2013

Payables and Accruals [Abstract]

Payables and Accrued Liabilities

Payables and Accrued Liabilities

Payables and accrued liabilities consist of the following (in thousands):

	March 31, 2013		December 31, 2012
MSR purchases payable including advances (see Note 1)	$	865,487	$	14,243
Reverse mortgage payables	113,601		103,068
Mortgage insurance premiums and reserves	105,563		77,967
Loans subject to repurchase from Ginnie Mae	74,645		72,156
Accrued interest	57,274		31,938
Government sponsored entities	55,740		27,071
Servicing payables	63,651		73,967
Taxes	26,209		50,908
Lease payables	27,170		29,553
Accrued bonus and payroll	27,077		58,083
Repurchase reserves	20,902		18,511
Payables to securitization trusts	19,195		7,946
Legal and professional fees	13,815		27,860
Cancelled lease reserves	6,661		7,188
Other	52,908		30,972
Total payables and accrued liabilities	$	1,529,898	$	631,431

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Mortgage Servicing Rights - Fair Value Assumptions (Details)	3 Months Ended	6 Months Ended	9 Months Ended	12 Months Ended
	Mar. 31, 2013	Jun. 30, 2011	Sep. 30, 2012	Dec. 31, 2012
Assumption for Fair Value of Mortgage Servicing Rights
Classes of MSRs serviced for others	2
Mortgage Servicing Rights | Credit Sensitive
Assumption for Fair Value of Mortgage Servicing Rights
Discount rate	15.05%			18.11%
Total prepayment speeds	18.51%			22.42%
Expected weighted-average life	4 years 11 months 0 days	5 years 1 month 24 days	4 years 9 months 15 days	4 years 1 month 13 days
Credit losses	18.02%			24.68%
Mortgage Servicing Rights | Interest Rate Sensitive
Assumption for Fair Value of Mortgage Servicing Rights
Discount rate	10.60%			10.62%
Total prepayment speeds	13.53%			17.08%
Expected weighted-average life	6 years 4 months 5 days	5 years 15 days	4 years 10 months 28 days	5 years 2 months 9 days
Credit losses	11.61%			11.09%

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Mortgage Servicing Rights (MSRs)

3 Months Ended

Mar. 31, 2013

Transfers and Servicing [Abstract]

Mortgage Servicing Rights (MSRs)

Mortgage Servicing Rights (MSRs)

MSRs at fair value

Nationstar recognizes MSRs related to all existing residential mortgage loans transferred to a third party in a transfer that meets the requirements for sale accounting and for which the servicing rights are retained. Additionally, Nationstar may acquire the rights to service residential mortgage loans that do not relate to assets transferred by Nationstar through the purchase of these rights from third parties.

Nationstar identifies MSRs related to all existing forward residential mortgage loans transferred to a third party in a transfer that meets the requirements for sale accounting or through the acquisition of rights to service forward residential mortgage loans that do not relate to assets transferred by Nationstar through the purchase of these rights from third parties as a class of MSRs. Nationstar applies fair value accounting to this class of MSRs, with all changes in fair value recorded as charges or credits to servicing fee income in accordance with ASC 860-50, Servicing Assets and Liabilities.

MSRs arise from contractual agreements between Nationstar and investors in mortgage securities and mortgage loans. Nationstar records MSR assets when it sells loans on a servicing-retained basis, at the time of securitization or through the acquisition or assumption of the right to service a financial asset. Under these contracts, Nationstar performs loan servicing functions in exchange for fees and other remuneration.

The fair value of the MSRs is based upon the present value of the expected future contractual cash flows related to servicing these loans. Nationstar receives a base servicing fee ranging from 0.25% to 0.50% annually on the remaining outstanding principal balances of the loans. The servicing fees are collected from investors. Nationstar determines the fair value of the MSRs by the use of a cash flow model that incorporates prepayment speeds, delinquencies, discount rate, and other assumptions (including servicing costs) that management believes are consistent with the assumptions other major market participants use in valuing the MSRs. Certain of the forward loans underlying the MSRs are prime agency and government conforming residential forward mortgage loans and as such are more interest rate sensitive whereas the remaining MSRs are more credit sensitive. The nature of the forward loans underlying the MSRs affects the assumptions that management believes other major market participants use in valuing the MSRs. Nationstar obtains third-party valuations for a majority its MSRs to assess the reasonableness of the fair value calculated by the cash flow model.

Certain of the forward loans underlying the mortgage servicing rights carried at fair value that are owned by Nationstar are credit sensitive in nature and the value of these mortgage servicing rights are more likely to be affected from changes in credit losses than from interest rate movement. The remaining forward loans underlying Nationstar’s MSRs held at fair value are prime agency and government conforming residential mortgage loans for which the value of these MSRs are more likely to be affected from interest rate movement than changes in credit losses.

Nationstar used the following weighted average assumptions in estimating the fair value of MSRs for the dates indicated:

Credit Sensitive MSRs	March 31, 2013		December 31, 2012
Discount rate	15.05	%	18.11	%
Total prepayment speeds	18.51	%	22.42	%
Expected weighted-average life	4.92 years		4.12 years
Credit losses	18.02	%	24.68	%
Interest Rate Sensitive MSRs	March 31, 2013		December 31, 2012
Discount rate	10.60	%	10.62	%
Total prepayment speeds	13.53	%	17.08	%
Expected weighted-average life	6.35 years		5.19 years
Credit losses	11.61	%	11.09	%

The activity of MSRs carried at fair value is as follows for the dates indicated (in thousands):

	Three months ended March 31, 2013			Year ended December 31, 2012
Fair value at the beginning of the period	$	635,860		$	251,050
Additions:
Servicing resulting from transfers of financial assets	31,268			58,607
Purchases of servicing assets	632,174			394,445
Changes in fair value:
Due to changes in valuation inputs or assumptions used in the valuation model	43,361			5,500
Other changes in fair value	(53,020		)	(73,742		)
Fair value at the end of the period	$	1,289,643		$	635,860
Unpaid principal balance of forward loans serviced for others
Credit sensitive loans	$	201,730,585		$	114,629,399
Interest sensitive loans	20,113,675			16,494,985
Total owned loans	$	221,844,260		$	131,124,384

The following table shows the hypothetical effect on the fair value of the MSRs using various unfavorable variations of the expected levels of certain key assumptions used in valuing these assets at March 31, 2013 and December 31, 2012 (in thousands):

	Discount Rate						Total Prepayment Speeds						Credit Losses
	100 bps Adverse Change			200 bps Adverse Change			10% Adverse Change			20% Adverse Change			10% Adverse Change			20% Adverse Change
March 31, 2013
Mortgage servicing rights	$	(30,092	)	$	(63,907	)	$	(96,409	)	$	(189,467	)	$	(95,440	)	$	(192,032	)
December 31, 2012
Mortgage servicing rights	$	(17,060	)	$	(34,419	)	$	(66,037	)	$	(124,995	)	$	(77,072	)	$	(157,433	)

These sensitivities are hypothetical and should be evaluated with care. The effect on fair value of a 10% variation in assumptions generally cannot be determined because the relationship of the change in assumptions to the fair value may not be linear. Additionally, the impact of a variation in a particular assumption on the fair value is calculated while holding other assumptions constant. In reality, changes in one factor may lead to changes in other factors (e.g., a decrease in total prepayment speeds may result in an increase in credit losses), which could impact the above hypothetical effects.

MSRs at amortized cost

Additionally, Nationstar has acquired servicing rights for reverse mortgage loans. For this class of servicing rights, Nationstar applies the amortization method (i.e., lower of cost or market) with the capitalized cost of the MSRs amortized in proportion and over the period of the estimated net future servicing income and recognized as an adjustment to servicing fee income. The expected period of the estimated net servicing income is based, in part, on the expected prepayment period of the underlying reverse mortgages. This class of MSRs is periodically evaluated for impairment. For purposes of measuring impairment, MSRs are stratified based on predominant risk characteristics of the underlying serviced loans. These risk characteristics include loan type (fixed or adjustable rate), term and interest rate. Impairment, if any, represents the excess of amortized cost of an individual stratum over its estimated fair value and is recognized through a valuation allowance.

As of March 31, 2013, Nationstar owns the right to service certain reverse mortgage MSRs with an unpaid principal balance of $28.2 billion. The initial carrying amount of these MSRs is based on the relative fair value of the purchased assets and liabilities including reverse mortgage interests. These MSRs are subsequently accounted for using the amortization method. Amortization / accretion is recorded as service fee income on the statement of operations and comprehensive income. Nationstar utilizes a variety of assumptions in assessing the fair value of its servicing assets or liabilities, with the primary assumptions including discount rates and the expected weighted average life. At March 31, 2013, no impairment was identified. Interest and servicing fees collected on reverse mortgage interests are included as a component of either interest or service fee income.

The activity of MSRs carried at amortized cost is as follows for the date indicated (in thousands):

	Three months ended						Year ended
	March 31, 2013						December 31, 2012
	Assets			Liabilities			Assets			Liabilities
Activity of MSRs at amortized cost
Balance at the beginning of the period	$	10,973		$	83,238		$	—		$	—
Additions:
Purchase /Assumptions of servicing rights/obligations	—			—			12,415			89,800
Deductions:
Amortization/Accretion	(32		)	(307		)	(1,442		)	(6,562		)
Balance at end of the period	$	10,941		$	82,931		$	10,973		$	83,238

Subserviced loans

In addition to the two classes of MSRs that Nationstar services for others, Nationstar also subservices loans on behalf of owners of MSRs or loans for a fee. Nationstar has no recorded value for its subservicing arrangements. At March 31, 2013 and December 31, 2012, the unpaid principal balances under subservicing arrangements were $42.7 billion and $45.7 billion, respectively.

Total servicing and ancillary fees from Nationstar’s servicing portfolio (including subservicing) of residential mortgage loans are presented in the following table for the periods indicated (in thousands):

	For the three months ended March 31,
	2013		2012
Servicing fees	$	182,709	$	60,977
Ancillary fees	36,870		25,958
Total servicing and ancillary fees	$	219,579	$	86,935

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Other Assets

3 Months Ended

Mar. 31, 2013

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Other Assets

Other Assets

Other assets consisted of the following (in thousands):

	March 31, 2013		December 31, 2012
Derivative financial instruments (see Note 10)	$	182,589	$	152,189
Loans subject to repurchase right from Ginnie Mae	74,645		72,156
Deferred financing costs	57,469		46,780
Deferred tax asset (see Note 13)	9,892		23,737
Margin call deposits	14,152		10,920
Deposits pending on mortgage servicing rights acquisitions	9,986		2,040
Prepaid expenses	9,649		6,083
Other	11,169		8,146
Total other assets	$	369,551	$	322,051

For certain loans sold to the Government National Mortgage Association (Ginnie Mae), Nationstar as the servicer has the unilateral right to repurchase without Ginnie Mae’s prior authorization any individual loan in a Ginnie Mae securitization pool if that loan meets certain criteria, including being delinquent greater than 90 days. Once Nationstar has the unilateral right to repurchase the delinquent loan, Nationstar has effectively regained control over the loan, and under GAAP, must re-recognize the loan on its balance sheet and establish a corresponding repurchase liability regardless of Nationstar’s intention to repurchase the loan. Nationstar’s re-recognized loans included in other assets and the corresponding liability in payables and accrued liabilities was $74.6 million at March 31, 2013 and $72.2 million at December 31, 2012.

In January 2013, Nationstar acquired Equifax Settlement Services LLC (ESS) for a total purchase price of $12.5 million. In an initial purchase price allocation, Nationstar has recorded $7.5 million of goodwill in Other assets on its consolidated balance sheet.

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Derivative Financial Instruments

3 Months Ended

Mar. 31, 2013

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments

Derivative Financial Instruments

Nationstar enters into interest rate lock commitments (IRLCs) with prospective borrowers. These commitments are carried at fair value in accordance with ASC 815, Derivatives and Hedging. ASC 815 clarifies that the expected net future cash flows related to the associated servicing of a loan should be included in the measurement of all written loan commitments that are accounted for at fair value through earnings. The estimated fair values of IRLCs are based on the fair value of the related mortgage loans which is based on observable market data and is recorded in other assets within the consolidated balance sheets. The initial and subsequent changes in the value of IRLCs are a component of gain on mortgage loans held for sale.

Nationstar actively manages the risk profiles of its IRLCs and mortgage loans held for sale on a daily basis. To manage the price risk associated with IRLCs, Nationstar enters into forward sales of MBS in an amount equal to the portion of the IRLC expected to close, assuming no change in mortgage interest rates. In addition, to manage the interest rate risk associated with mortgage loans held for sale, Nationstar enters into forward sale commitments to deliver mortgage loan inventory to investors. The estimated fair values of forward sales of MBS and forward sale commitments are based on exchange prices or the dealer market price and are recorded as a component of other assets and mortgage loans held for sale, respectively, in the consolidated balance sheets. The initial and subsequent changes in value on forward sales of MBS and forward sale commitments are a component of gain on mortgage loans held for sale.

Nationstar may occasionally enter into contracts with other mortgage lenders to purchase residential mortgage loans at a future date, which are referred to as Loan Purchase Commitments (LPCs). LPCs are accounted for as derivatives under ASC 815 and recorded at fair value in other assets on Nationstar's consolidated balance sheet. Subsequent changes in LPCs are recorded as a charge or credit to gain on mortgage loans held for sale.

Periodically, Nationstar has entered into interest rate swap agreements to hedge the interest payment on the warehouse debt and securitization of its mortgage loans held for sale. These interest rate swap agreements generally require Nationstar to pay a fixed interest rate and receive a variable interest rate based on LIBOR. Unless designated as an accounting hedge, Nationstar records gains and losses on interest rate swaps as a component of gain/(loss) on interest rate swaps and caps in Nationstar’s consolidated statements of income and comprehensive income. Unrealized losses on undesignated interest rate derivatives are separately disclosed under operating activities in the consolidated statements of cash flows. Interest rate swaps designated as cash flow hedges under ASC 815 are recorded at fair value on the Company’s consolidated balance sheet, with any changes in fair value related to the effective portion of the hedge being recorded as an adjustment to other comprehensive income. To qualify as a cash flow hedge, the hedge must be highly effective at reducing the risk associated with the exposure being hedged and must be formally designated at hedge inception. Nationstar considers a hedge to be highly effective if the change in fair value of the derivative hedging instrument is within 80% to 125% of the change in the fair value of the hedged item attributable to the hedged risk. Ineffective portions of the cash flow hedge are reflected in earnings as they occur as a component of interest expense.

In conjunction with the Reorganization, FIF contributed outstanding interest rate swaps in March 2012 to Nationstar. These interest rate swaps on ABS debt generally require Nationstar to pay a fixed interest rate and receive a variable interest rate based on LIBOR. The outstanding interest rate swaps have not been designated as accounting hedges during the three months ended March 31, 2013 and 2012. Any changes in fair value are recorded as a component of gains or losses on interest rate swaps and caps in Nationstar’s consolidated statement of income and comprehensive income.

Associated with the Company's derivatives is $14.2 million and $10.9 million in margin call deposits recorded in other assets on the Company's balance sheet as of March 31, 2013 and December 31, 2012, respectively.

The following tables provide the outstanding notional balances and fair values of outstanding positions for the dates indicated, and recorded gains/(losses) during the periods indicated (in thousands):

	Expiration Dates	Outstanding Notional		Fair Value		Recorded Gains / (Losses)
For the three months ended March 31, 2013
MORTGAGE LOANS HELD FOR SALE
Loan sale commitments	2013	$	324	$	18	$	(3	)
OTHER ASSETS
IRLCs	2013-2014	7,114,578		180,174		30,126
Forward MBS trades	2013	990,702		1,918		1,030
LPCs	2013	60,561		497		(756		)
LIABILITIES
Interest rate swaps and caps	2014-2015	637,852		4,987		1,004
Interest rate swaps on ABS debt	2013-2017	668,985		1,582		264
Forward MBS trades	2013	5,605,889		20,306		(8,332		)
LPCs	2013	2,837		20		66
For the year ended December 31, 2012
MORTGAGE LOANS HELD FOR SALE
Loan sale commitments	2013	$	445	$	21	$	(613	)
OTHER ASSETS
IRLCs	2013	4,921,963		150,048		138,746
Forward MBS trades	2013	977,900		888		888
LPCs	2013	112,624		1,253		1,253
LIABILITIES
Interest rate swaps and caps	2013-2015	726,168		6,120		420
Interest rate swaps on ABS debt (1)	2013-2017	654,192		1,846		(1,414		)
Forward MBS trades	2013	3,964,721		11,974		(6,144		)
LPCs	2013	78,839		86		(86		)

⁽¹⁾  In March 2012, Nationstar received interest rate swaps from FIF as a part of the reorganization.

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Mortgage Servicing Rights - Subserviced Loans (Details) (USD $) In Thousands, unless otherwise specified			3 Months Ended
	Mar. 31, 2013 Loan Subservicing Agreement	Dec. 31, 2012 Loan Subservicing Agreement	Mar. 31, 2013 Residential Mortgage	Mar. 31, 2012 Residential Mortgage
Subserviced Loans [Line Items]
Principal amount outstanding on loans managed and securitized	$ 42,700,000	$ 45,700,000
Servicing and ancillary fees
Servicing fees			182,709	60,977
Ancillary fees			36,870	25,958
Total servicing and ancillary fees			$ 219,579	$ 86,935

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Fair Value Measurements - Measured on a Nonrecurring Basis (Details) (Fair Value, Measurements, Nonrecurring, USD $)	3 Months Ended	12 Months Ended
	Mar. 31, 2013	Dec. 31, 2012
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Gains (Losses) Included in Earnings	$ (1,092,000)	$ (2,864,000)
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
REO	0	0
Total assets	0	0
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
REO	0	0
Total assets	0	0
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
REO	15,487,000	10,467,000
Total assets	15,487,000	10,467,000
Total Fair Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
REO	15,487,000	10,467,000
Total assets	15,487,000	10,467,000
Real Estate Owned
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Gains (Losses) Included in Earnings	$ (1,092,000)	$ (2,864,000)

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Other Assets - Mortgage Servicing Rights (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012	Dec. 31, 2012
Mortgaging Servicing Rights
Deposit for acquisition	$ 9,986		$ 2,040
Loans subject to repurchase right from Ginnie Mae	74,645		72,156
Payments to Acquire Mortgage Servicing Rights (MSR)	266,625	347
Mortgage Servicing Rights
Mortgaging Servicing Rights
Principal amount outstanding on loans managed and securitized	$ 221,844,260		$ 131,124,384

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Subsequent Events (Details) (USD $)	Mar. 31, 2013	Jan. 31, 2013	Dec. 31, 2012	Jun. 30, 2012	May 03, 2013 Subsequent Event [Member]	Mar. 31, 2013 Mortgage Servicing Right [Member]	Dec. 31, 2012 Mortgage Servicing Right [Member]	Apr. 16, 2013 Mortgage Servicing Right [Member] Subsequent Event [Member]	Jan. 06, 2013 Mortgage Servicing Right [Member] Subsequent Event [Member]
Subsequent Event [Line Items]
Principal Amount Outstanding on Loans Managed and Securitized or Asset-backed Financing Arrangement						$ 221,844,260,000	$ 131,124,384,000	$ 22,000,000,000	$ 215,000,000,000
Service Advances, Net	3,351,989,000		2,800,690,000	1,700,000,000				200,000,000	5,800,000,000
Purchase Price of Loans under Mortgage Servicing Agreement								400,000,000	7,100,000,000
Business Acquisition, Cost of Acquired Entity, Purchase Price		$ 13,000,000			$ 75,000,000

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Mortgage Servicing Rights - MSR's at Amortized Cost (Details) (USD $) In Thousands, unless otherwise specified			3 Months Ended	12 Months Ended
	Mar. 31, 2013	Dec. 31, 2012	Mar. 31, 2013 Mortgage Servicing Rights	Dec. 31, 2012 Mortgage Servicing Rights	Mar. 31, 2013 Reverse Mortgages	Feb. 28, 2013 Reverse Mortgages
Servicing Assets at Amortized Value
Principal amount outstanding on loans managed and securitized			$ 221,844,260	$ 131,124,384	$ 28,200,000	$ 83,100,000
Servicing Asset at Amortized Value, Balance [Roll Forward]
Balance at the beginning of the period	10,941	10,973	10,973	0
Purchase/Assumptions of servicing rights/obligations			0	12,415
Amortization/Accretion			(32)	(1,442)
Balance at the end of the period	10,941	10,973	10,941	10,973
Servicing Liability at Amortized Value [Roll Forward]
Balance at the beginning of the period	82,931	83,238	83,238	0
Purchase/Assumptions of servicing rights/obligations			0	89,800
Amortization/Accretion			(307)	(6,562)
Balance at the end of the period	$ 82,931	$ 83,238	$ 82,931	$ 83,238

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Commitments and Contingencies - Litigation and Regulatory Matters (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Loss Contingencies [Line Items]
Legal Fees	$ 3.5	$ 1.6
Litigation and Regulatory Matters [Member]
Loss Contingencies [Line Items]
Loss Contingency, Range of Possible Loss, Minimum	1.0
Loss Contingency, Range of Possible Loss, Maximum	$ 4.8

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Mortgage Servicing Rights (Tables)

3 Months Ended

Mar. 31, 2013

Transfers and Servicing [Abstract]

Schedule of Assumptions for Fair Value of Mortgage Service Rights

Nationstar used the following weighted average assumptions in estimating the fair value of MSRs for the dates indicated:

Credit Sensitive MSRs	March 31, 2013		December 31, 2012
Discount rate	15.05	%	18.11	%
Total prepayment speeds	18.51	%	22.42	%
Expected weighted-average life	4.92 years		4.12 years
Credit losses	18.02	%	24.68	%
Interest Rate Sensitive MSRs	March 31, 2013		December 31, 2012
Discount rate	10.60	%	10.62	%
Total prepayment speeds	13.53	%	17.08	%
Expected weighted-average life	6.35 years		5.19 years
Credit losses	11.61	%	11.09	%

Schedule of Servicing Assets at Fair Value

The activity of MSRs carried at fair value is as follows for the dates indicated (in thousands):

	Three months ended March 31, 2013			Year ended December 31, 2012
Fair value at the beginning of the period	$	635,860		$	251,050
Additions:
Servicing resulting from transfers of financial assets	31,268			58,607
Purchases of servicing assets	632,174			394,445
Changes in fair value:
Due to changes in valuation inputs or assumptions used in the valuation model	43,361			5,500
Other changes in fair value	(53,020		)	(73,742		)
Fair value at the end of the period	$	1,289,643		$	635,860
Unpaid principal balance of forward loans serviced for others
Credit sensitive loans	$	201,730,585		$	114,629,399
Interest sensitive loans	20,113,675			16,494,985
Total owned loans	$	221,844,260		$	131,124,384

Schedule of Sensitivity Analysis of Fair Value, Transferor's Interests in Transferred Financial Assets [Table Text Block]

The following table shows the hypothetical effect on the fair value of the MSRs using various unfavorable variations of the expected levels of certain key assumptions used in valuing these assets at March 31, 2013 and December 31, 2012 (in thousands):

	Discount Rate						Total Prepayment Speeds						Credit Losses
	100 bps Adverse Change			200 bps Adverse Change			10% Adverse Change			20% Adverse Change			10% Adverse Change			20% Adverse Change
March 31, 2013
Mortgage servicing rights	$	(30,092	)	$	(63,907	)	$	(96,409	)	$	(189,467	)	$	(95,440	)	$	(192,032	)
December 31, 2012
Mortgage servicing rights	$	(17,060	)	$	(34,419	)	$	(66,037	)	$	(124,995	)	$	(77,072	)	$	(157,433	)

Activity of MSRs at Amortized Cost

The activity of MSRs carried at amortized cost is as follows for the date indicated (in thousands):

	Three months ended						Year ended
	March 31, 2013						December 31, 2012
	Assets			Liabilities			Assets			Liabilities
Activity of MSRs at amortized cost
Balance at the beginning of the period	$	10,973		$	83,238		$	—		$	—
Additions:
Purchase /Assumptions of servicing rights/obligations	—			—			12,415			89,800
Deductions:
Amortization/Accretion	(32		)	(307		)	(1,442		)	(6,562		)
Balance at end of the period	$	10,941		$	82,931		$	10,973		$	83,238

Schedule of Fees in Servicing Portfolio

Total servicing and ancillary fees from Nationstar’s servicing portfolio (including subservicing) of residential mortgage loans are presented in the following table for the periods indicated (in thousands):

	For the three months ended March 31,
	2013		2012
Servicing fees	$	182,709	$	60,977
Ancillary fees	36,870		25,958
Total servicing and ancillary fees	$	219,579	$	86,935

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Accounts Receivable (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2013	Dec. 31, 2012	Jun. 30, 2012
Receivables [Abstract]
Servicer advances, net of purchase discount	$ 3,351,989	$ 2,800,690	$ 1,700,000
Accrued servicing fees	101,349	90,231
Receivables from trusts	30,398	39,029
Reverse mortgage - other	13,171	28,448
Accrued interest	3,920	3,801
Other	114,000	81,407
Total accounts receivable	$ 3,614,827	$ 3,043,606

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Share-based Compensation

3 Months Ended

Mar. 31, 2013

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Shareholders' Equity

Share-Based Compensation

Share-based compensation is recognized in accordance with ASC 718, Compensation-Stock Compensation. This guidance requires all share-based payments to employees, including grants of employee stock options, to be recognized as an expense in the consolidated statements of operations, based on the fair values. The amount of compensation is measured at the fair value of the awards when granted and this cost is expensed over the required service period, which is normally the vesting period of the award.

Nationstar Inc. has adopted the 2012 Incentive Compensation Plan (2012 Plan), that offers equity-based awards to certain key employees of Nationstar, consultants, and non-employee directors. In connection with the initial public offering, on March 7, 2012, Nationstar Inc. made grants of restricted stock to management of 1,191,117 shares and also to non-employee directors of 85,716 shares. As permitted under the 2012 plan, certain participants remitted a portion of their Nationstar Inc. common stock to Nationstar Mortgage LLC in payment of a portion of their federal tax withholdings on their vested shares. The participants paid the remainder of their required tax payments with cash. As a result of the above activity, Nationstar Mortgage LLC holds 161,651 shares of Nationstar Inc. common shares at their cost of $6.6 million.

The following table summarizes information about our restricted stock as of March 31, 2013 under the 2012 Plan (shares in thousands):

	Shares	Grant Date Fair Value	Remaining Contractual Term
Restricted stock granted in conjunction with the initial public offering in March 2012	1,277	$14.00	1.9
Grants issued subsequent to public offering	69	$29.95	2.1
Forfeited	(53)
Restricted stock outstanding at December 31, 2012	1,293
Grants issued in March 2013	288	$37.60	3.0
Forfeited	(16)
Shares returned to treasury to pay taxes	(162)
Restricted stock outstanding at March 31, 2013	1,403
Restricted stock unvested and expected to vest	923
Restricted stock vested and payable at March 31, 2013	—

The following table summarizes the expected future vesting schedule of the restricted stock grants (in thousands):

	2013	2014	2015	2016
Restricted stock expected to vest	20	413	413	77

In addition to the 2012 Plan, Nationstar management also has interests in certain of the predecessor parent company FIF’s restricted preferred units which fully vested on June 30, 2012. The weighted average grant date fair value of these units was $4.23. In conjunction with the final vesting under this plan, certain participants remitted a portion of their Nationstar Inc. common stock to Nationstar in payment of a portion of their federal tax withholdings on their vested shares. The participants paid the remainder of their required tax payments with cash. As a result of the above activity, Nationstar holds 212,156 shares of Nationstar Inc. common shares at their cost of $4.6 million. These shares are reflected in Nationstar Inc.'s consolidated balance sheet as common shares held by subsidiary, a contra equity account. The shares are expected to be held by Nationstar until they can be distributed to Nationstar Inc.

Total compensation expense, net of forfeitures, for the 2012 Plan for the three month endedMarch 31, 2013 and for both the 2012 Plan and the predecessor plan recognized for the three months ended March 31, 2012 was $3.0 million and $2.4 million, respectively. Nationstar expects to recognize $7.3 million of compensation expense in the last nine months of 2013, $4.9 million in 2014, $1.6 million in 2015 and $0.2 million in 2016.

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Guarantor Financial Statement Information

3 Months Ended

Mar. 31, 2013

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Guarantor Financial Statement Information

Guarantor Financial Statement Information

As of March 31, 2013, Nationstar and Nationstar Capital Corporation have issued $1.7 billion aggregate principal amount of unsecured senior notes which mature on various dates through July 1, 2021. The notes are jointly and severally guaranteed on an unsecured senior basis by all of Nationstar’s existing and future domestic subsidiaries other than its securitization and certain finance subsidiaries, certain other restricted subsidiaries and subsidiaries that in the future Nationstar designates as excluded restricted and unrestricted subsidiaries. All guarantor subsidiaries are 100% owned by Nationstar. Effective June 30, 2012, Nationstar Inc. and its two direct wholly-owned subsidiaries became guarantors of the unsecured senior notes as well. Presented below are consolidating financial statements of Nationstar Inc., Nationstar, and the guarantor subsidiaries for the periods indicated.

NATIONSTAR MORTGAGE HOLDINGS INC. CONSOLIDATING BALANCE SHEET MARCH 31, 2013 (IN THOUSANDS)
Assets	Nationstar Inc.		Issuer		Guarantor (Subsidiaries)		Non-Guarantor (Subsidiaries)		Eliminations			Consolidated
Cash and cash equivalents	$	—	$	209,286	$	753	$	10,000	$	—		$	220,039
Restricted cash	—		194,768		18,769		146,930		—			360,467
Accounts receivable, net	—		3,410,255		7,666		196,906		—			3,614,827
Mortgage loans held for sale	—		1,703,709		—		—		—			1,703,709
Mortgage loans held for investment, subject to nonrecourse debt–Legacy Asset, net	—		16,717		—		219,198		—			235,915
Participating interest in reverse mortgages	—		978,652		—		—		—			978,652
Receivables from affiliates	—		—		102,364		1,670,029		(1,763,466		)	8,927
Mortgage servicing rights – fair value	—		1,289,643		—		—		—			1,289,643
Investment in subsidiaries	799,342		174,679		—		—		(974,021		)	—
Mortgage servicing rights – amortized cost	—		10,941		—		—		—			10,941
Property and equipment, net	—		76,102		1,305		—		—			77,407
REO, net	—		12,791		—		2,696		—			15,487
Other assets	31,464		337,538		7,569		—		(7,020		)	369,551
Total assets	$	830,806	$	8,415,081	$	138,426	$	2,245,759	$	(2,744,507	)	$	8,885,565
Liabilities and stockholders’ equity
Notes payable	$	—	$	1,314,873	$	—	$	2,095,013	$	—		$	3,409,886
Unsecured senior notes	—		1,669,146		—		—		—			1,669,146
Payables and accrued liabilities	—		1,525,800		7,853		3,265		(7,020		)	1,529,898
Payables to affiliates	6,554		1,756,912		—		—		(1,763,466		)	—
Derivative financial instruments	—		21,908		—		4,987		—			26,895
Mortgage Servicing Liability	—		82,931		—		—		—			82,931
Nonrecourse debt–Legacy Assets	—		—		—		98,388		—			98,388
Excess spread financing - at fair value	—		498,906		—		—		—			498,906
Participating interest financing	—		745,263		—		—		—			745,263
Total liabilities	6,554		7,615,739		7,853		2,201,653		(1,770,486		)	8,061,313
Total stockholders’ equity	824,252		799,342		130,573		44,106		(974,021		)	824,252
Total liabilities and stockholders’ equity	$	830,806	$	8,415,081	$	138,426	$	2,245,759	$	(2,744,507	)	$	8,885,565

NATIONSTAR MORTGAGE HOLDINGS INC. CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) FOR THE THREE MONTHS ENDED MARCH 31, 2013 (IN THOUSANDS)
	Nationstar Inc.		Issuer			Guarantor (Subsidiaries)		Non-Guarantor (Subsidiaries)			Eliminations			Consolidated
Revenues:
Servicing fee income	$	—	$	207,015		$	—	$	—		$	(9,419	)	$	197,596
Other fee income	—		6,234			38,517		128			—			44,879
Total fee income	—		213,249			38,517		128			(9,419		)	242,475
Gain on mortgage loans held for sale	—		179,603			—		—			8,984			188,587
Total Revenues	—		392,852			38,517		128			(435		)	431,062
Expenses and impairments:
Salaries, wages and benefits	—		128,588			6,399		—			—			134,987
General and administrative	—		116,403			9,239		—			—			125,642
Provision for loan losses	—		—			—		915			—			915
Loss on foreclosed real estate and other	—		296			—		796			—			1,092
Occupancy	—		5,784			151		—			—			5,935
Total expenses and impairments	—		251,071			15,789		1,711			—			268,571
Other income (expense):
Interest income	—		25,424			—		3,749			435			29,608
Interest expense	—		(69,608		)	—		(22,766		)	—			(92,374		)
Gain/(Loss) on interest rate swaps and caps	—		263			—		1,005			—			1,268
Gain/(loss) from subsidiaries	62,616		3,133			—		—			(65,749		)	—
Total other income (expense)	62,616		(40,788		)	—		(18,012		)	(65,314		)	(61,498		)
Income before taxes	62,616		100,993			22,728		(19,595		)	(65,749		)	100,993
Income tax expense/(benefit)	—		38,377			—		—			—			38,377
Net income/(loss) and comprehensive income/(loss)	$	62,616	$	62,616		$	22,728	$	(19,595	)	$	(65,749	)	$	62,616

NATIONSTAR MORTGAGE HOLDINGS INC. CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE THREE MONTHS ENDED MARCH 31, 2013 (IN THOUSANDS)
	Nationstar Inc.			Issuer			Guarantor (Subsidiaries)			Non-Guarantor (Subsidiaries)			Eliminations			Consolidated
Operating activities:
Net income/(loss)	$	62,616		$	62,616		$	22,728		$	(19,595	)	$	(65,749	)	$	62,616
Adjustments to reconcile net income/(loss) to net cash provided by/(used in) operating activities:
(Gain)/loss from subsidiaries	(62,616		)	(3,133		)	—			—			65,749			—
Share-based compensation	—			2,858			—			—			—			2,858
Provision for loan losses	—			—			—			915			—			915
Loss on foreclosed real estate and other	—			296			—			796			—			1,092
(Gain)/loss on ineffectiveness on interest rate swaps and cap	—			(263		)	—			(1,005		)	—			(1,268		)
Fair value changes in excess spread financing	—			23,891			—			—			—			23,891
Depreciation and amortization	—			3,850			51			—			—			3,901
Change in fair value of mortgage servicing rights	—			9,659			—			—			—			9,659
Amortization/accretion of mortgage servicing rights at amortized cost	—			(275		)	—			—			—			(275		)
Amortization (accretion) of premiums/discounts	—			9,589			—			(80		)	—			9,509
Gain on mortgage loans held for sale	—			(179,603		)	—			—			(8,984		)	(188,587		)
Mortgage loans originated and purchased, net of fees	—			(3,781,116		)	—			—			—			(3,781,116		)
Proceeds on sale of and payments of mortgage loans held for sale	—			3,682,566			—			3,309			8,984			3,694,859
Net tax effect of stock grants	(2,660		)	—			—			—			—			(2,660		)
Changes in assets and liabilities:
Accounts receivable, including servicing advances, net	—			282,727			(5,840		)	(195,793		)	—			81,094
Receivables from/(payables to) affiliates	6,584			(320,843		)	2,402			315,534			—			3,677
Reverse mortgage funded advances	—			(178,181		)	—			—			—			(178,181		)
Other assets	(2,690		)	4,631			(5,740		)	—			(5,477		)	(9,276		)
Payable and accrued liabilities	2,660			(127,198		)	6,038			8,076			5,477			(104,947		)
Net cash provided by/(used in) operating activities	3,894			(507,929		)	19,639			112,157			—			(372,239		)

	Nationstar Inc.			Issuer			Guarantor (Subsidiaries)			Non-Guarantor (Subsidiaries)			Eliminations		Consolidated
Investing activities:
Property and equipment additions, net of disposals	—			(5,761		)	(521		)	—			—		(6,282		)
Deposit on reverse mortgage servicing rights, net	—			(50,198		)	—			—			—		(50,198		)
Deposit on / purchase of mortgage servicing rights, net of liabilities incurred	—			(266,625		)	—			—			—		(266,625		)
Loan repurchases from Ginnie Mae	—			(8,815		)	—			—			—		(8,815		)
Proceeds from sales of REO	—			4,157			—			—			—		4,157
Net cash used in investing activities	—			(327,242		)	(521		)	—			—		(327,763		)
Financing activities:
Issuance of Senior Unsecured Notes	—			599,269			—			—			—		599,269
Transfers to/from restricted cash	—			(49,111		)	(18,766		)	100,600			—		32,723
Issuance of participating interest financing	—			166,646			—			—			—		166,646
Issuance of excess spread financing	—			192,730			—			—			—		192,730
Increase (decrease) in notes payable, net	—			8,316			—			(200,016		)	—		(191,700		)
Repayment of nonrecourse debt–Legacy assets	—			—			—			(2,612		)	—		(2,612		)
Repayment of excess servicing spread financing	—			(20,881		)	—			—			—		(20,881		)
Net tax benefit for stock grants issued	2,660			—			—			—			—		2,660
Contributions from joint venture members to noncontrolling interests	—			4,990			—			—			—		4,990
Redemption of shares for stock vesting	(6,554		)	—			—			—			—		(6,554		)
Cash settlement on derivative financial instruments	—			—			—			(129		)	—		(129		)
Debt financing costs	—			(9,750		)	—			—			—		(9,750		)
Net cash provided by/(used in) financing activities	(3,894		)	892,209			(18,766		)	(102,157		)	—		767,392
Net increase/(decrease) in cash	—			57,038			352			10,000			—		67,390
Cash and cash equivalents at beginning of period	—			152,248			401			—			—		152,649
Cash and cash equivalents at end of period	$	—		$	209,286		$	753		$	10,000		$	—	$	220,039

NATIONSTAR MORTGAGE HOLDINGS INC. CONSOLIDATING BALANCE SHEET DECEMBER 31, 2012 (IN THOUSANDS)
	Nationstar Inc.		Issuer (Parent)		Guarantor (Subsidiaries)		Non-Guarantor (Subsidiaries)		Eliminations			Consolidated
Assets
Cash and cash equivalents	$	—	$	152,248	$	401	$	—	$	—		$	152,649
Restricted cash	—		145,657		3		247,530		—			393,190
Accounts receivable, net	—		3,040,666		1,826		1,114		—			3,043,606
Mortgage loans held for sale	—		1,480,537		—		—		—			1,480,537
Mortgage loans held for investment, subject to nonrecourse debt–Legacy Asset, net	—		14,700		—		224,207		—			238,907
Participating interest in reverse mortgages	—		750,273		—		—		—			750,273
Receivables from affiliates	—		—		92,373		1,983,997		(2,063,766		)	12,604
Mortgage servicing rights – fair value	—		635,860		—		—		—			635,860
Investment in subsidiaries	728,908		149,188		—		—		(878,096		)	—
Mortgage servicing rights - amortized cost	—		10,973		—		—		—			10,973
Property and equipment, net	—		74,191		835		—		—			75,026
REO, net	—		8,428		—		2,039		—			10,467
Other assets	28,774		303,737		1,829		1,847		(14,136		)	322,051
Total assets	$	757,682	$	6,766,458	$	97,267	$	2,460,734	$	(2,955,998	)	$	7,126,143
Liabilities and members’ equity
Notes payable	$	—	$	1,306,557	$	—	$	2,295,029	$	—		$	3,601,586
Unsecured senior notes	—		1,062,635		—		—		—			1,062,635
Payables and accrued liabilities	—		640,369		1,815		3,383		(14,136		)	631,431
Payables to affiliates	—		2,063,766		—		—		(2,063,766		)	—
Derivative financial instruments	—		12,060		—		7,966					20,026
Mortgage Servicing Liability	—		83,238		—		—		—			83,238
Nonrecourse debt–Legacy Assets	—		—		—		100,620		—			100,620
Excess spread financing – fair value	—		288,089		—		—		—			288,089
Participating interest financing	—		580,836		—		—		—			580,836
Total liabilities	—		6,037,550		1,815		2,406,998		(2,077,902		)	6,368,461
Total members’ equity	757,682		728,908		95,452		53,736		(878,096		)	757,682
Total liabilities and members’ equity	$	757,682	$	6,766,458	$	97,267	$	2,460,734	$	(2,955,998	)	$	7,126,143

NATIONSTAR MORTGAGE LLC CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) FOR THE THREE MONTHS ENDED MARCH 31, 2012 (IN THOUSANDS)
	Issuer			Guarantor (Subsidiaries)			Non-Guarantor (Subsidiaries)			Eliminations			Consolidated
Revenues:
Servicing fee income	$	84,171		$	—		$	2,486		$	(467	)	$	86,190
Other fee income	—			7,255			115			—			7,370
Total fee income	84,171			7,255			2,601			(467		)	93,560
Gain on mortgage loans held for sale	70,512			—			—			—			70,512
Total Revenues	154,683			7,255			2,601			(467		)	164,072
Expenses and impairments:
Salaries, wages and benefits	59,583			2,082			—			—			61,665
General and administrative	26,026			566			2,520			—			29,112
Provision for loan losses	461			—			292			—			753
Loss on foreclosed real estate	—			—			2,265			—			2,265
Occupancy	2,782			—			—			—			2,782
Total expenses and impairments	88,852			2,648			5,077			—			96,577
Other income / (expense):
Interest income	5,887			—			4,847			467			11,201
Interest expense	(18,195		)	—			(6,785		)	—			(24,980		)
Loss on equity method investments	—			(117		)	—			—			(117		)
Gain/(loss) on interest rate swaps and caps	(306		)	—			38			—			(268		)
Gain / (loss) from subsidiaries	114			—			—			(114		)	—
Total other income / (expense)	(12,500		)	(117		)	(1,900		)	353			(14,164		)
Income before taxes	53,331			4,490			(4,376		)	(114		)	53,331
Income tax expense/(benefit)	21,273			—			—			—			21,273
Net Income	$	32,058		$	4,490		$	(4,376	)	$	(114	)	$	32,058

NATIONSTAR MORTGAGE LLC CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE THREE MONTHS ENDED MARCH 31, 2012 (IN THOUSANDS)
	Issuer (Parent)			Guarantor (Subsidiaries)			Non-Guarantor (Subsidiaries)			Eliminations			Consolidated
Operating activities:
Net income/(loss)	$	32,058		$	4,490		$	(4,376	)	$	(114	)	$	32,058
Adjustments to reconcile net income/(loss) to net cash provided by/(used in) operating activities:
(Gain)/loss from subsidiaries	(114		)	—			—			114			—
Share-based compensation	2,395			—			—			—			2,395
(Gain)/loss on sale of mortgage loans	(70,512		)	—			—			—			(70,512		)
Provision for loan losses	461			—			292			—			753
Loss on foreclosed real estate and other	—			—			2,265			—			2,265
Loss on equity method investments	117			—			—			—			117
(Gain)/loss on ineffectiveness on interest rate swaps and cap	306			—			(38		)	—			268
Fair value changes in excess spread financing	4,852			—			—			—			4,852
Depreciation and amortization	1,531			—			—			—			1,531
Change in fair value of mortgage servicing rights	(495		)	—			—			—			(495		)
Accretion of mortgage servicing liability	(633		)	—			—			—			(633		)
Amortization (accretion) of premiums/discounts	2,685			—			(763		)	—			1,922
Mortgage loans originated and purchased, net of fees	(1,189,942		)	—			—			—			(1,189,942		)
Cost of loans sold and principal payments and prepayments, and other changes in mortgage loans originated as held for sale, net of fees	1,297,338			—			5,758			—			1,303,096
Changes in assets and liabilities:
Accounts receivable	(238,752		)	(10		)	279,447			—			40,685
Receivables from/(payables to) affiliates	302,346			(4,447		)	(297,093		)	—			806
Reverse funded advances due to securitization	(112,738		)	—			—			—			(112,738		)
Other assets	(5,620		)	—			—			—			(5,620		)
Accounts payable and accrued liaibilities	98,546			—			28,779			—			127,325
Net cash provided by/(used in) operating activities	123,829			33			14,271			—			138,133

	Issuer (Parent)			Guarantor (Subsidiaries)		Non-Guarantor (Subsidiaries)			Eliminations		Consolidated
Investing activities:
Property and equipment additions, net of disposals	(2,564		)	—		—			—		(2,564		)
Deposit on / purchase of mortgage servicing rights, net of liabilities incurred	(347		)	—		—			—		(347		)
Repurchases of REO from Ginnie Mae	(2,426		)	—		—			—		(2,426		)
Proceeds from sales of REO	4,816			—		(1,861		)	—		2,955
Net cash provided by/(used in) investing activities	(521		)	—		(1,861		)	—		(2,382		)
Financing activities:
Transfers to/from restricted cash	(82,358		)	—		(8,593		)	—		(90,951		)
Issuance of participating interest financing	115,438			—		—			—		115,438
Increase (decrease) in notes payable, net	(104,743		)	—		(682		)	—		(105,425		)
Repayment of nonrecourse debt–Legacy assets	—			—		(3,135		)	—		(3,135		)
Repayment of excess servicing spread financing	(2,123		)	—		—			—		(2,123		)
Contribution of parent	246,700			—		—			—		246,700
Debt financing costs	(2,706		)	—		—			—		(2,706		)
Net cash provided by/(used in) financing activities	170,208			—		(12,410		)	—		157,798
Net increase/(decrease) in cash	293,516			33		—			—		293,549
Cash and cash equivalents at beginning of period	62,201			244		—			—		62,445
Cash and cash equivalents at end of period	$	355,717		$	277	$	—		$	—	$	355,994

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Business Segment Reporting - Financial Information (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2013 segment	Mar. 31, 2012	Dec. 31, 2012
Segment Reporting Information [Line Items]
Number of operating segments	2
Revenues:
Servicing fee income	$ 197,596	$ 86,190
Other fee income	44,879	7,370
Total fee income	242,475	93,560
Gain/(loss) on mortgage loans held for sale	188,587	70,512
Total revenues	431,062	164,072
Total expenses and impairments	268,571	96,577
Other income (expense):
Interest income	29,608	11,201
Interest expense	(92,374)	(24,980)
Gain / (Loss) on interest rate swaps and caps	1,268	(268)
Total other income (expense)	(61,498)	(14,164)
Income before taxes	100,993	53,331
Depreciation and amortization	3,901	1,531
Assets	8,885,565	2,178,762	7,126,143
Operating Segments
Revenues:
Servicing fee income	206,460	86,040
Other fee income	44,961	7,400
Total fee income	251,421	93,440
Gain/(loss) on mortgage loans held for sale	179,695	70,500
Total revenues	431,116	163,940
Total expenses and impairments	259,511	87,704
Other income (expense):
Interest income	24,359	5,926
Interest expense	(88,080)	(20,705)
Gain / (Loss) on interest rate swaps and caps	795	38
Total other income (expense)	(62,926)	(14,858)
Income before taxes	108,679	61,378
Depreciation and amortization	3,122	1,242
Assets	8,533,243	1,914,745
Servicing Segment
Revenues:
Servicing fee income	206,460	86,040
Other fee income	39,065	7,419
Total fee income	245,525	93,459
Gain/(loss) on mortgage loans held for sale	(98)	0
Total revenues	245,427	93,459
Total expenses and impairments	147,609	59,230
Other income (expense):
Interest income	13,380	2,385
Interest expense	(71,321)	(16,928)
Gain / (Loss) on interest rate swaps and caps	795	38
Total other income (expense)	(57,146)	(14,622)
Income before taxes	40,672	19,607
Depreciation and amortization	2,306	860
Assets	6,378,129	1,402,327
Originations Segment
Revenues:
Servicing fee income	0	0
Other fee income	5,896	(19)
Total fee income	5,896	(19)
Gain/(loss) on mortgage loans held for sale	179,793	70,500
Total revenues	185,689	70,481
Total expenses and impairments	111,902	28,474
Other income (expense):
Interest income	10,979	3,541
Interest expense	(16,759)	(3,777)
Gain / (Loss) on interest rate swaps and caps	0	0
Total other income (expense)	(5,780)	(236)
Income before taxes	68,007	41,771
Depreciation and amortization	816	382
Assets	2,155,114	512,418
Legacy Portfolio and Other
Revenues:
Servicing fee income	555	617
Other fee income	(82)	(30)
Total fee income	473	587
Gain/(loss) on mortgage loans held for sale	(92)	0
Total revenues	381	587
Total expenses and impairments	9,060	8,883
Other income (expense):
Interest income	4,814	4,808
Interest expense	(4,294)	(4,253)
Gain / (Loss) on interest rate swaps and caps	473	(306)
Total other income (expense)	993	249
Income before taxes	(7,686)	(8,047)
Depreciation and amortization	779	289
Assets	352,322	264,017
Eliminations
Revenues:
Servicing fee income	(9,419)	(467)
Other fee income		0
Total fee income	(9,419)	(467)
Gain/(loss) on mortgage loans held for sale	8,984	12
Total revenues	(435)	(455)
Total expenses and impairments	0	(10)
Other income (expense):
Interest income	435	467
Interest expense	0	(22)
Gain / (Loss) on interest rate swaps and caps	0	0
Total other income (expense)	435	445
Income before taxes	0	0
Depreciation and amortization	0	0
Assets	$ 0	$ 0

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Variable Interest Entities and Securitizations - Cash Flows from Securitization Trust (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Variable Interest Entities and Securitizations [Abstract]
Servicing Fees Received	$ 6,791	$ 7,861
Loan Repurchases	$ 0	$ 0

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Share-based Compensation (Tables)

3 Months Ended

Mar. 31, 2013

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Restricted Stock Information

The following table summarizes information about our restricted stock as of March 31, 2013 under the 2012 Plan (shares in thousands):

	Shares	Grant Date Fair Value	Remaining Contractual Term
Restricted stock granted in conjunction with the initial public offering in March 2012	1,277	$14.00	1.9
Grants issued subsequent to public offering	69	$29.95	2.1
Forfeited	(53)
Restricted stock outstanding at December 31, 2012	1,293
Grants issued in March 2013	288	$37.60	3.0
Forfeited	(16)
Shares returned to treasury to pay taxes	(162)
Restricted stock outstanding at March 31, 2013	1,403
Restricted stock unvested and expected to vest	923
Restricted stock vested and payable at March 31, 2013	—

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Consolidated Statements of Shareholders' Equity (USD $) In Thousands, except Share data, unless otherwise specified	Total	Common Stock	Members' Units	Additional Paid-in Capital	Retained Earnings	Common Shares Held By Subsidiary
Balance at Dec. 31, 2011	$ 281,309	$ 0	$ 281,309	$ 0	$ 0	$ 0
Balance, shares at Dec. 31, 2011		0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Contributions from parent - FIF HE	12,764		12,764
LLC conversion of equity to common shares	0	700	(294,073)	293,373
LLC conversion of equity to common shares, shares		70,000,000
Common stock issuance	246,700	192		246,508
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures		1,293,000
Common stock issuance, shares		19,167,000
Share-based compensation	0	13		(13)
Stock Issued During Period, Shares, Treasury Stock Reissued		0
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition	13,342
Excess tax benefit from share-based compensation	2,846			2,846
Tax related share-based settlement of units by members	(4,566)					(4,566)
Stockholders' Equity Attributable to Noncontrolling Interest	0
Net income	205,287				205,287
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	757,682
Balance at Dec. 31, 2012	757,682	905	0	556,056		(4,566)
Balance, shares at Dec. 31, 2012		90,460,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures	0	3,000		(3,000)
Share-based compensation	2,858			2,858
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition				2,660
Excess tax benefit from share-based compensation	2,660
Tax related share-based settlement of units by members						0
Excess Tax Benefit (Tax Deficiency) from Share-based Compensation, Financing Activities	(6,554)
Stockholders' Equity Attributable to Noncontrolling Interest	4,990
Proceeds from Noncontrolling Interests	4,990
Net income	62,616				62,616
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	824,252
Balance at Mar. 31, 2013	$ 819,262	$ 908	$ 0	$ 561,571	$ 267,903	$ (4,566)
Balance, shares at Mar. 31, 2013		90,769,000

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Share-based Compensation (Details) (USD $)	3 Months Ended				0 Months Ended	1 Months Ended	3 Months Ended	9 Months Ended	0 Months Ended
	Mar. 31, 2013	Mar. 31, 2012	Dec. 31, 2012	Sep. 30, 2012	Jun. 30, 2012 Restricted Preferred Units	Mar. 31, 2012 2012 Plan Restricted Stock	Mar. 31, 2013 2012 Plan Restricted Stock	Dec. 31, 2012 2012 Plan Restricted Stock	Mar. 09, 2012 2012 Plan Management Restricted Stock	Mar. 09, 2012 2012 Plan Members of the Board Restricted Stock	Mar. 31, 2013 Nationstar Mortgage LLC
Share-based Compensation Arrangement by Share-based Payment Award
Treasury Stock, Value, Acquired, Cost Method	$ 6,600,000
Grants						1,277,000	288,000	69,000	1,191,117	85,716
Treasury Stock, Shares, Acquired	162,000
Weighted average grant date fair value					$ 4.23	$ 14.00	$ 37.60	$ 29.95
Shares of Nationstar Mortgage stock held by Nationstar LLC											212,156
Value of Nationstar Mortgage shares held by Nationstar LLC	4,566,000		4,566,000								0
Compensation expense, net of forfeitures	3,000,000	2,400,000
Compensation expense to recognize in remaining 2012	7,300,000
Compensation expense to recognize in 2013				4,900,000
Compensation expense to recognize in 2014				1,600,000
Compensation expense to recognize in 2015				$ 200,000

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Consolidated Statement of Cash Flows-Supplemental Disclosure

3 Months Ended

Mar. 31, 2013

Supplemental Cash Flow Elements [Abstract]

Consolidated Statement of Cash Flows-Supplemental Disclosure

Consolidated Statement of Cash Flows-Supplemental Disclosure

Total interest paid for the three months ended March 31, 2013 and 2012 was approximately $51.8 million and $14.0 million, respectively. Income taxes paid for the three months ended March 31, 2013 was $46.1 million. There were no income taxes paid for the three months ended March 31, 2012.

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Mortgage Loans Held for Sale and Investment - Credit Quality (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2013	Dec. 31, 2012
Minimum | Loan-to-Value Ratio Between 60 Percent and 70 Percent
Financing Receivable, Recorded Investment [Line Items]
Loan-to-value ratio	60.00%
Minimum | Loan-to-Value Ratio Between 70 Percent and 80 Percent
Financing Receivable, Recorded Investment [Line Items]
Loan-to-value ratio	70.00%
Minimum | Loan-to-Value Ratio Between 80 Percent and 90 Percent
Financing Receivable, Recorded Investment [Line Items]
Loan-to-value ratio	80.00%
Minimum | Loan-to-Value Ratio Between 90 Percent and 100 Percent
Financing Receivable, Recorded Investment [Line Items]
Loan-to-value ratio	90.00%
Minimum | Loan-to-Value Ratio Greater Than 100 Percent
Financing Receivable, Recorded Investment [Line Items]
Loan-to-value ratio	100.00%
Maximum | Loan-to-Value Ratio Less Than 60 Percent
Financing Receivable, Recorded Investment [Line Items]
Loan-to-value ratio	60.00%
Maximum | Loan-to-Value Ratio Between 60 Percent and 70 Percent
Financing Receivable, Recorded Investment [Line Items]
Loan-to-value ratio	70.00%
Maximum | Loan-to-Value Ratio Between 70 Percent and 80 Percent
Financing Receivable, Recorded Investment [Line Items]
Loan-to-value ratio	80.00%
Maximum | Loan-to-Value Ratio Between 80 Percent and 90 Percent
Financing Receivable, Recorded Investment [Line Items]
Loan-to-value ratio	90.00%
Maximum | Loan-to-Value Ratio Between 90 Percent and 100 Percent
Financing Receivable, Recorded Investment [Line Items]
Loan-to-value ratio	100.00%
Mortgage Loans Held for Investment
Financing Receivable, Recorded Investment [Line Items]
Unpaid principal balance	$ 348,822	$ 354,154
Mortgage Loans Held for Investment | Performing
Financing Receivable, Recorded Investment [Line Items]
Unpaid principal balance	266,854	260,219
Mortgage Loans Held for Investment | Nonperforming
Financing Receivable, Recorded Investment [Line Items]
Unpaid principal balance	81,968	93,935
Mortgage Loans Held for Investment | Loan-to-Value Ratio Less Than 60 Percent
Financing Receivable, Recorded Investment [Line Items]
Unpaid principal balance	38,677	39,436
Mortgage Loans Held for Investment | Loan-to-Value Ratio Between 60 Percent and 70 Percent
Financing Receivable, Recorded Investment [Line Items]
Unpaid principal balance	16,685	16,581
Mortgage Loans Held for Investment | Loan-to-Value Ratio Between 70 Percent and 80 Percent
Financing Receivable, Recorded Investment [Line Items]
Unpaid principal balance	22,954	20,890
Mortgage Loans Held for Investment | Loan-to-Value Ratio Between 80 Percent and 90 Percent
Financing Receivable, Recorded Investment [Line Items]
Unpaid principal balance	26,521	27,988
Mortgage Loans Held for Investment | Loan-to-Value Ratio Between 90 Percent and 100 Percent
Financing Receivable, Recorded Investment [Line Items]
Unpaid principal balance	30,918	32,570
Mortgage Loans Held for Investment | Loan-to-Value Ratio Greater Than 100 Percent
Financing Receivable, Recorded Investment [Line Items]
Unpaid principal balance	$ 213,067	$ 216,689

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Fair Value Measurements - Fair Value Assumptions (Details) (Excess Spread Financing)	3 Months Ended	12 Months Ended
	Mar. 31, 2013	Dec. 31, 2012
Excess Spread Financing
Assumption for Fair Value as of Balance Sheet Date of Assets or Liabilities that relate to Transferor's Continuing Involvement
Mortgage prepayment speeds	15.00%	14.00%
Average life	4 years 2 months 0 days
Discount rate	13.10%	15.00%

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Derivative Financial Instruments - Derivative Instruments (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended	12 Months Ended
	Mar. 31, 2013	Dec. 31, 2012
Derivatives, Fair Value [Line Items]
Margin Deposit Assets	$ 14,152	$ 10,920
Other Assets
Derivatives, Fair Value [Line Items]
Margin Deposit Assets	14,200	10,900
Forward Contracts | Loans Held-for-sale, Mortgages [Member]
Derivatives, Fair Value [Line Items]
Fair Value - Asset	18	21
Recorded Gains / (Losses)	(3)	(613)
Forward Contracts | Derivative Financial Instruments
Derivatives, Fair Value [Line Items]
Fair Value - Liability	20,306	11,974
Recorded Gains / (Losses)	(8,332)	(6,144)
Forward Contracts | Designated as Hedging Instrument | Loans Held-for-sale, Mortgages [Member]
Derivatives, Fair Value [Line Items]
Outstanding Notional - Asset	324	445
Forward Contracts | Designated as Hedging Instrument | Derivative Financial Instruments
Derivatives, Fair Value [Line Items]
Outstanding Notional - Liability	5,605,889	3,964,721
Interest Rate Lock Commitments | Other Assets
Derivatives, Fair Value [Line Items]
Fair Value - Asset	180,174	150,048
Recorded Gains / (Losses)	30,126	138,746
Interest Rate Lock Commitments | Designated as Hedging Instrument | Other Assets
Derivatives, Fair Value [Line Items]
Outstanding Notional - Asset	7,114,578	4,921,963
Interest Rate Swaps and Caps | Derivative Financial Instruments
Derivatives, Fair Value [Line Items]
Fair Value - Liability	4,987	1,253
Recorded Gains / (Losses)	1,004	1,253
Interest Rate Swaps and Caps | Designated as Hedging Instrument | Derivative Financial Instruments
Derivatives, Fair Value [Line Items]
Outstanding Notional - Liability	637,852	112,624
Asset Backed Securities | Interest Rate Swap | Derivative Financial Instruments
Derivatives, Fair Value [Line Items]
Fair Value - Liability	1,582	6,120
Recorded Gains / (Losses)	264	420
Asset Backed Securities | Interest Rate Swap | Designated as Hedging Instrument | Derivative Financial Instruments
Derivatives, Fair Value [Line Items]
Outstanding Notional - Liability	$ 668,985	$ 726,168

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Disclosures Related to Transactions with Affiliates of Fortress Investment Group LLC

3 Months Ended

Mar. 31, 2013

Transactions with Affiliates [Abstract]

Disclosures Related to Transactions with Affiliates of Fortress Investment Group LLC

Disclosures Related to Transactions with Affiliates of Fortress Investment Group LLC

Nationstar maintains a marketing agreement with Springleaf Home Equity, Inc., Springleaf General Financial Services of Arkansas, Inc. and MorEquity, Inc. (collectively “Springleaf”), each of which are indirectly owned by investment funds managed by affiliates of Fortress Investment Group LLC. Pursuant to this agreement, Nationstar markets mortgage originations products to customers of Springleaf, and is compensated by the originations fees of loans that Nationstar refinances.

Additionally, Nationstar has eight agreements to act as the loan subservicer for Springleaf, including one for a whole loan "unencumbered" portfolio and seven for securitized loan portfolios, totaling $3.3 billion for which Nationstar receives a monthly per loan subservicing fee and other performance incentive fees subject to the agreements with Springleaf. For the three months ended March 31, 2013 and 2012, Nationstar recognized revenue of $2.1 million and $2.6 million, respectively, in additional servicing and other performance incentive fees related to these portfolios. At March 31, 2013 and December 31, 2012, Nationstar had an outstanding receivable from Springleaf of $0.8 million and $0.7 million, respectively, which was included as a component of accounts receivable.

Nationstar is the loan servicer for two securitized loan portfolios managed by Newcastle, which is managed by an affiliate of Fortress Investment Group LLC, for which Nationstar receives a monthly net servicing fee equal to 0.50% per annum on the unpaid principal balance of the portfolios, which was $1.0 billion and $1.1 billion, as of March 31, 2013 and 2012, respectively. For the three months ended March 31,2013 and 2012, Nationstar received servicing fees and other performance incentive fees of $1.2 million and $1.4 million, respectively.

Additionally, Nationstar has entered into several agreements with certain entities formed by Newcastle, in which Newcastle and/or certain funds managed by Fortress own an interest (each a "Newcastle Entity"), where Nationstar sold to the related Newcastle Entity the right to receive a portion of the excess cash flow generated from certain acquired MSRs after receipt of a fixed basic servicing fee per loan. Nationstar retains all ancillary income associated with servicing such MSRs and the remaining portion of the excess cash flow after receipt of the fixed basic servicing fee. Nationstar is the servicer of the loans and provides all servicing and advancing functions for the portfolio. The related Newcastle Entity does not have prior or ongoing obligations associated with these MSR portfolios. Furthermore, should Nationstar refinance any loan in such portfolios, subject to certain limitations, Nationstar will be required to transfer the new loan or a replacement loan of similar economic characteristics into the portfolios. The new or replacement loan will be governed by the same terms set forth in the agreements described above.

The fair value on the outstanding liability related to these agreements was $498.9 million and $288.1 million at March 31, 2013 and December 31, 2012, respectively.

In February 2013, Nationstar acquired certain fixed and adjustable rate reverse mortgage loans with an unpaid principal balance totaling $83.1 billion for a purchase price of $50.2 million. In conjunction with this acquisition, Nationstar entered into an agreement with NIC Reverse Loan LLC, a subsidiary of Newcastle, to sell a participating interest of the acquired reverse mortgage loans. Both Nationstar and NIC Reverse Loan LLC are entitled to the related percentage interest of all amounts received with respect to the reverse mortgage loans, net of payments of servicing fees and the reimbursement to Nationstar of servicing advances. Nationstar receives a fixed payment per loan for servicing these reverse mortgage loans. Nationstar records these reverse mortgage loans as reverse mortgage interests on the Company's consolidated balance sheet.

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Indebtedness - Unsecured Notes Maturity Schedule (Details) (Unsecured Senior Notes, USD $)	Mar. 31, 2013
Unsecured Senior Notes
Expected maturities of long-term debt
2013	$ 0
2014	285,000,000
2015	0
2016	0
2017	0
Thereafter	1,375,000,000
Total	$ 1,660,000,000

XML

Indebtedness (Tables)

3 Months Ended

Mar. 31, 2013

Debt Disclosure [Abstract]

Schedule of Notes Payable

A summary of the balances of unsecured senior notes is presented below (in thousands):

	March 31, 2013		December 31, 2012
$285 million face value, 10.875% interest rate payable semi-annually, due April 2015	$	282,046	$	281,676
$375 million face value, 9.625% interest rate payable semi-annually, due May 2019	379,896		380,232
$400 million face value, 7.875% interest rate payable semi-annually, due October 2020	400,704		400,727
$600 million face value, 6.500%, interest rate payable semi-annually, due July 2021	606,500		—
Total	$	1,669,146	$	1,062,635

A summary of the balances of notes payable for the dates indicated is presented below (in thousands).

	March 31, 2013				December 31, 2012
	Outstanding		Collateral Pledged		Outstanding		Collateral Pledged
Servicing Segment Notes Payable
MBS advance financing facility	$	174,965	$	192,278	$	185,817	$	206,622
Securities repurchase facility (2011)	11,774		55,603		11,774		55,603
2010-ABS advance financing facility	194,217		237,865		194,833		233,208
Nationstar Agency advance financing facility	575,035		608,663		476,091		549,284
MSR note	3,239		11,299		4,627		12,328
2012-AW agency advance financing facility	—		—		100,000		135,343
2012-C ABS advance financing facility	574,437		653,676		657,027		742,238
2012-R ABS advance financing facility	326,821		376,374		374,739		428,758
2012-W ABS advance financing facility	424,503		497,745		492,235		566,332
Reverse participations financing facility	104,799		127,424		65,943		76,455
MBS advance financing facility (2012)	60,012		68,992		—		—
Originations Segment Notes Payable
$750 million warehouse facility	495,751		517,002		245,287		285,281
$150 million warehouse facility	128,900		133,081		224,790		241,867
$750 million warehouse facility (2011)	197,257		204,617		356,104		371,836
$300 million warehouse facility (2009)	80,847		84,216		87,747		91,403
ASAP+ facility	57,329		55,704		124,572		124,596
Total notes payable	$	3,409,886	$	3,824,539	$	3,601,586	$	4,121,154

Schedule of Maturities of Long-term Debt

The expected maturities of Nationstar's senior unsecured notes based on contractual maturities are as follows (in thousands).

Year	Amount
2014	$	—
2015	285,000
2016	—
2017	—
2018	—
Thereafter	1,375,000
Total	$	1,660,000

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Fair Value Measurements

3 Months Ended

Mar. 31, 2013

Fair Value Disclosures [Abstract]

Fair Value Measurements

Fair Value Measurements

ASC 820, Fair Value Measurements and Disclosures, provides a definition of fair value, establishes a framework for measuring fair value, and requires expanded disclosures about fair value measurements. The standard applies when GAAP requires or allows assets or liabilities to be measured at fair value and, therefore, does not expand the use of fair value in any new circumstance.

ASC 820 emphasizes that fair value is a market-based measurement, not an entity-specific measurement. Therefore, a fair value measurement should be determined based on the assumptions that market participants would use in pricing the asset or liability. As a basis for considering market participant assumptions in fair value measurements, ASC 820 establishes a three-tiered fair value hierarchy based on the level of observable inputs used in the measurement of fair value (e.g., Level 1 representing quoted prices for identical assets or liabilities in an active market; Level 2 representing values using observable inputs other than quoted prices included within Level 1; and Level 3 representing estimated values based on significant unobservable inputs). In addition, ASC 820 requires an entity to consider all aspects of nonperformance risk, including its own credit standing, when measuring the fair value of a liability. Under ASC 820, related disclosures are segregated for assets and liabilities measured at fair value based on the level used within the hierarchy to determine their fair values.

The following describes the methods and assumptions used by Nationstar in estimating fair values:

Cash and Cash Equivalents, Restricted Cash – The carrying amount reported in the consolidated balance sheets approximates fair value.

Mortgage Loans Held for Sale – Nationstar originates mortgage loans in the U.S. that it intends to sell to Fannie Mae, Freddie Mac, and Ginnie Mae (collectively, the Agencies). Additionally, Nationstar holds mortgage loans that it intends to sell into the secondary markets via whole loan sales or securitizations. Nationstar measures newly originated prime residential mortgage loans held for sale at fair value.

Mortgage loans held for sale are typically pooled together and sold into certain exit markets, depending upon underlying attributes of the loan, such as agency eligibility, product type, interest rate, and credit quality. Mortgage loans held for sale are valued using a market approach by utilizing either: (i) the fair value of securities backed by similar mortgage loans, adjusted for certain factors to approximate the fair value of a whole mortgage loan, including the value attributable to mortgage servicing and credit risk, (ii) current commitments to purchase loans or (iii) recent observable market trades for similar loans, adjusted for credit risk and other individual loan characteristics. As these prices are derived from market prices, Nationstar classifies these valuations as Level 2 in the fair value disclosures.

Mortgage Loans Held for Investment, subject to nonrecourse debt – Legacy Assets – Nationstar determines the fair value of loans held for investment, subject to nonrecourse debt – Legacy Assets using internally developed valuation models. These valuation models estimate the exit price Nationstar expects to receive in the loan’s principal market. Although Nationstar utilizes and gives priority to observable market inputs such as interest rates and market spreads within these models, Nationstar typically is required to utilize internal inputs, such as prepayment speeds, credit losses, and discount rates. These internal inputs require the use of judgment by Nationstar and can have a significant impact on the determination of the loan’s fair value. As these prices are derived from a combination of internally developed valuation models and quoted market prices, Nationstar classifies these valuations as Level 3 in the fair value disclosures.

Mortgage Servicing Rights – Fair Value – Nationstar recognizes MSRs related to all existing residential mortgage loans transferred to a third party in a transfer that meets the requirements for sale accounting and for which the servicing rights are retained. Additionally, Nationstar may acquire the rights to service residential mortgage loans that do not relate to assets transferred by Nationstar through the purchase of these rights from third parties. Nationstar estimates the fair value of its forward MSRs using a process that combines the use of a discounted cash flow model and analysis of current market data to arrive at an estimate of fair value. The cash flow assumptions and prepayment assumptions used in the model are based on various factors, with the key assumptions being mortgage prepayment speeds, discount rates, and credit losses. These assumptions are generated and applied based on collateral stratifications including product type, remittance type, geography, delinquency and coupon dispersion. These assumptions require the use of judgment by Nationstar and can have a significant impact on the determination of the MSR’s fair value. Periodically, management obtains third party valuations of a portion of the portfolio to assess the reasonableness of the fair value calculations provided by the cash flow model. Because of the nature of the valuation inputs, Nationstar classifies these valuations as Level 3 in the fair value disclosures.

Reverse Mortgage Interests – Nationstar’s reverse mortgage interests consist of fees paid to taxing authorities for borrowers' unpaid taxes and insurance, and payments made to borrowers for line of credit draws on reverse mortgages. These advances include due and payable advances, which are recovered upon the foreclosure and sale of the subject property, and defaulted advances that can be securitized. Nationstar estimates the fair value using a market approach by utilizing the fair value of securities backed by similar advances on reverse mortgage loans, adjusted for certain factors. Nationstar classifies these valuations as Level 2 in the fair value disclosures.

REO – Nationstar determines the fair value of REO properties through the use of third-party appraisals and broker price opinions, adjusted for estimated selling costs. Such estimated selling costs include realtor fees and other anticipated closing costs. These values are adjusted to take into account factors that could cause the actual liquidation value of foreclosed properties to be different than the appraised values. This valuation adjustment is based upon Nationstar’s historical experience with REO. REO is classified as Level 3 in the fair value disclosures.

Derivative Instruments – Nationstar enters into a variety of derivative financial instruments as part of its hedging strategy. The majority of these derivatives are exchange-traded or traded within highly active dealer markets. In order to determine the fair value of these instruments, Nationstar utilizes the exchange price or dealer market price for the particular derivative contract; therefore, these contracts are classified as Level 2. In addition, Nationstar enters into IRLCs and LPCs with prospective borrowers and other loan originators. These commitments are carried at fair value based on the fair value of related mortgage loans which are based on observable market data. Nationstar adjusts the outstanding IRLCs with prospective borrowers based on an expectation that it will be exercised and the loan will be funded. IRLCs and LPCs are recorded in other assets or derivative financial instruments in the consolidated balance sheets. These commitments are classified as Level 2 in the fair value disclosures.

Notes Payable – Notes payable consists of outstanding borrowings on Nationstar's warehouse and advance financing facilities. As the underlying warehouse and advance finance facilities bear interest at a rate that is periodically adjusted based on a market index, the carrying amount reported on the consolidated balance sheet approximates fair value. Nationstar classifies these valuations as Level 3 in the fair value disclosures.

Unsecured Senior Notes – The fair value of unsecured senior notes is based on quoted market prices and is considered Level 1 from the market observable inputs used to determine fair value.

Nonrecourse Debt – Legacy Assets – Nationstar estimates fair value based on the present value of future expected discounted cash flows with the discount rate approximating current market value for similar financial instruments. These prices are derived from a combination of internally developed valuation models and quoted market prices, and are classified as Level 3.

Excess Spread Financing – Nationstar estimates fair value based on the present value of future expected discounted cash flows with the discount rate approximating current market value for similar financial instruments. The cash flow assumptions and prepayment assumptions used in the model are based on various factors, with the key assumptions at March 31, 2013 being mortgage prepayment speeds of 15.0%, average life of 4.2 years, and discount rate of 13.1%. Key assumptions at December 31, 2012, were mortgage prepayment speeds of 14.0%, average life of 4.2 years and discount rate of 15.0%. Changes in fair value to the excess spread financing are recorded as a component of service fee income in Nationstar's consolidated statement of operations. As these prices are derived from a combination of internally developed valuation models and quoted market prices based on the value of the underlying MSRs, Nationstar classifies these valuations as Level 3 in the fair value disclosures.

The range of various assumptions used in Nationstar's valuation of excess spread financing were as follows:

Excess Spread financing	Prepayment Speeds	Average Life (years)	Discount Rate
For three months ended March 31, 2013
Low	9.2%	3.0 years	10.3%
High	21.1%	4.8 years	15.4%
For the year ended December 31, 2012
Low	9.4%	3.0 years	13.6%
High	22.4%	4.5 years	15.5%

Participating Interest Financing – Nationstar estimates the fair value using a market approach by utilizing the fair value of securities backed by similar participating interests in reverse mortgage loans. Nationstar classifies these valuations as Level 2 in the fair value disclosures.

The estimated carrying amount and fair value of Nationstar’s financial instruments and other assets and liabilities measured at fair value on a recurring basis is as follows for the dates indicated (in thousands):

			March 31, 2013
			Recurring Fair Value Measurements
	Total Fair Value		Level 1		Level 2		Level 3
ASSETS
Mortgage loans held for sale(1)	$	1,703,709	$	—	$	1,703,709	$	—
Mortgage servicing rights – fair value(1)	1,289,643		—		—		1,289,643
Other assets:
IRLCs	180,174		—		180,174		—
Forward MBS trades	1,918		—		1,918		—
LPCs	497		—		497		—
Total assets	$	3,175,941	$	—	$	1,886,298	$	1,289,643
LIABILITIES
Derivative financial instruments
Interest rate swaps and caps	$	4,987	$	—	$	4,987	$	—
Interest rate swaps on ABS debt	1,582		—		1,582		—
Forward MBS trades	20,306		—		20,306		—
LPCs	20		—		20		—
Excess spread financing (at fair value)	498,906		—		—		498,906
Total liabilities	$	525,801	$	—	$	26,895	$	498,906
			December 31, 2012
			Recurring Fair Value Measurements
	Total Fair Value		Level 1		Level 2		Level 3
ASSETS
Mortgage loans held for sale(1)	$	1,480,537	$	—	$	1,480,537	$	—
Mortgage servicing rights – fair value(1)	635,860		—		—		635,860
Other assets:
IRLCs	150,048		—		150,048		—
Forward MBS trades	888		—		888		—
LPCs	1,253		—		1,253		—
Total assets	$	2,268,586	$	—	$	1,632,726	$	635,860
LIABILITIES
Derivative financial instruments
Interest rate swaps and caps	$	6,120	$	—	$	6,120	$	—
Interest rate swaps on ABS debt	1,846		—		1,846		—
Forward MBS trades	11,974				11,974
LPCs	86		—		86		—
Excess spread financing (at fair value)	288,089		—		—		288,089
Total liabilities	$	308,115	$	—	$	20,026	$	288,089

⁽¹⁾  Based on the nature and risks of these assets and liabilities, the Company has determined that presenting them as a single class is appropriate.

The table below presents a reconciliation for all of Nationstar’s Level 3 assets and liabilities measured at fair value on a recurring basis for the dates indicated (in thousands):

	ASSETS			LIABILITIES
For the three months ended March 31, 2013	Mortgage servicing rights			Excess spread financing
Beginning balance	$	635,860		$	288,089
Transfers into Level 3	—			—
Transfers out of Level 3	—			—
Total gains or losses
Included in earnings	(9,659		)	23,891
Included in other comprehensive income	—			—
Purchases, issuances, sales and settlements
Purchases	632,174			—
Issuances	31,268			207,581
Sales	—			—
Settlements	—			(20,655		)
Ending balance	$	1,289,643		$	498,906

	ASSETS			LIABILITIES
For the year ended December 31, 2012	Mortgage servicing rights			Excess spread financing
Beginning balance	$	251,050		$	44,595
Transfers into Level 3	—			—
Transfers out of Level 3	—			—
Total gains or losses
Included in earnings	(68,242		)	10,683
Included in other comprehensive income	—			—
Purchases, issuances, sales and settlements
Purchases	394,445			—
Issuances	58,607			272,676
Sales	—			—
Settlements	—			(39,865		)
Ending balance	$	635,860		$	288,089

The table below presents the items which Nationstar measures at fair value on a nonrecurring basis (in thousands).

	Nonrecurring Fair Value Measurements						Total Estimated Fair Value		Total Gain (Loss) Included in Earnings
	Level 1		Level 2		Level 3
Three months ended March 31, 2013
Assets
REO(1)	$	—	$	—	$	15,487	$	15,487	$	(1,092	)
Total assets	$	—	$	—	$	15,487	$	15,487	$	(1,092	)
Year ended December 31, 2012
Assets
REO(1)	$	—	$	—	$	10,467	$	10,467	$	(2,864	)
Total assets	$	—	$	—	$	10,467	$	10,467	$	(2,864	)

⁽¹⁾  Based on the nature and risks of these assets and liabilities, the Company has determined that presenting them as a single class is appropriate.

The table below presents a summary of the estimated carrying amount and fair value of Nationstar’s financial instruments (in thousands).

	March 31, 2013
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3
Financial assets:
Cash and cash equivalents	$	220,039	$	220,039	$	—	$	—
Restricted cash	360,467		360,467		—		—
Mortgage loans held for sale	1,703,709		—		1,703,709		—
Mortgage loans held for investment, subject to nonrecourse debt – Legacy assets	235,915		—		—		202,618
Reverse mortgage interests	978,652		—		1,034,509		—
Derivative instruments	182,589		—		182,589		—
Financial liabilities:
Notes payable	3,409,886		—		—		3,409,886
Unsecured senior notes	1,669,146		1,806,057		—		—
Derivative financial instruments	26,895		—		26,895		—
Nonrecourse debt - Legacy assets	98,388		—		—		100,066
Excess spread financing	498,906		—		—		498,906
Participating interest financing	745,263		—		747,998		—
	December 31, 2012
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3
Financial assets:
Cash and cash equivalents	$	152,649	$	152,649	$	—	$	—
Restricted cash	393,190		393,190		—		—
Mortgage loans held for sale	1,480,537		—		1,480,537		—
Mortgage loans held for investment, subject to nonrecourse debt – Legacy assets	238,907		—		—		220,755
Reverse mortgage interests	750,273		—		805,650		—
Derivative financial instruments	152,189		—		152,189		—
Financial liabilities:
Notes payable	3,601,586		—		—		3,601,586
Unsecured senior notes	1,062,635		1,151,997		—		—
Derivative financial instruments	20,026		—		20,026		—
Nonrecourse debt - Legacy assets	100,620		—		—		102,492
Excess spread financing	288,089		—		—		288,089
Participating interest financing	580,836		—		593,741		—

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Related Party Disclosures Related Party Transactions (Details) (USD $)	3 Months Ended		1 Months Ended	3 Months Ended	9 Months Ended	12 Months Ended		3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012	Mar. 31, 2012 National Real Estate Information Services, LP [Member]	Dec. 31, 2012 National Real Estate Information Services, LP [Member]	Sep. 30, 2012 National Real Estate Information Services, LP [Member]	Dec. 31, 2012 National Real Estate Information Services, LP [Member]	Mar. 31, 2013 National Real Estate Information Services, LP [Member]	Mar. 31, 2013 Springleaf [Member]	Mar. 31, 2012 Springleaf [Member]	Mar. 31, 2013 Newcastle	Mar. 31, 2012 Newcastle
Related Party Transaction [Line Items]
Contractually Specified Servicing Fees, Late Fees, and Ancillary Fees Earned in Exchange for Servicing Financial Assets								$ 2,100,000	$ 2,600,000	$ 1,200,000	$ 1,400,000
Equity Method Investment, Realized Gain (Loss) on Disposal						(2,300,000)
Percentage interest in equity investment acquired			13.00%
Income (Loss) from Equity Method Investments	$ 0	$ (117,000)		$ (9,000,000)	$ (1,300,000)
Percentage interest in equity investment							35.00%