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, 2014

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, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer”, "accelerated filer" and "smaller reporting company" in Rule 12(b)-2 of the Exchange Act

Large Accelerated Filer	x	Accelerated Filer	¨
Non-Accelerated Filer	¨ (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, 2014: 90,776,399

NATIONSTAR MORTGAGE HOLDINGS INC.

QUARTERLY REPORT ON FORM 10-Q

TABLE OF CONTENTS

		Page
PART I	FINANCIAL INFORMATION
Item 1.	Financial Statements	9
	Consolidated Balance Sheets – March 31, 2014 (unaudited) and December 31, 2013	9
	Unaudited Consolidated Statements of Income and Comprehensive Income - For the three months ended March 31, 2014 and 2013	10
	Consolidated Statements of Stockholders’ Equity - For the three months ended March 31, 2014 (unaudited) and year ended December 31, 2013	11
	Unaudited Consolidated Statements of Cash Flows - For the three months ended March 31, 2014 and 2013	12
	Notes to Unaudited Consolidated Financial Statements	14
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	56
Item 3.	Quantitative and Qualitative Disclosure About Market Risks	78
Item 4.	Controls and Procedures	78
PART II	OTHER INFORMATION
Item 1.	Legal Proceedings	79
Item 1A.	Risk Factors	79
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	79
Item 3.	Defaults Upon Senior Securities	79
Item 4.	Mine Safety Disclosures	79
Item 5.	Other Information	79
Item 6.	Exhibits, Financial Statement Schedules	80
Signatures
Exhibits

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GLOSSARY OF INDUSTRY TERMS

This glossary defines some of the industry terms that we use herein and is not a complete list of all defined terms used.

Adjustable Rate Mortgage (ARM).  A mortgage loan where the interest rate on the loan adjusts periodically based on a specified index and margin agreed to at the time the loan is originated.

Agency and Government Conforming Loan.  A mortgage loan that meets all requirements (loan type, maximum amount, LTV ratio and credit quality) for purchase by Fannie Mae, Freddie Mac or FHA.

Asset-Backed Securities (ABS). A financial security whose income payments and value is derived from and collateralized (or “backed”) by a specified pool of underlying receivables or other financial assets.

Basic Servicing Fee.  The servicing fee retained by the servicer, expressed in basis points, in an excess MSR arrangement in exchange for the provision of servicing functions on a portfolio of mortgage loans, after which the servicer and the co-investment partner share the excess fees on a pro rata basis.

Consumer Direct Retail Originations.  A type of mortgage loan origination pursuant to which a lender markets refinancing and purchase money mortgage loans directly to selected consumers through telephone call centers or the Internet.

Conventional Mortgage Loans.  A mortgage loan that is not guaranteed or insured by the FHA, the VA or any other government agency. Although a conventional loan is not insured or guaranteed by the government, it can still follow the guidelines of GSEs.

Corporate Advance.  A servicing advance to pay costs, fees and expenses incurred in foreclosing upon, preserving defaulted loans and selling REO, including attorneys’ and other professional fees and expenses incurred in connection with foreclosure and liquidation or other legal proceedings arising in the course of servicing the defaulted mortgage loans.

Credit-Sensitive Loan.  A mortgage loan with certain characteristics such as low borrower credit quality, relaxed original underwriting standards and high LTV, which we believe indicates that the mortgage loan presents an elevated credit risk.

Delinquent Loan.  A mortgage loan that is 30 or more days past due from its scheduled due date.

Department of Veterans Affairs (VA).  The VA is a cabinet-level department of the U.S. federal government, which guarantees certain home loans for qualified borrowers.

Excess Fees.  In an excess MSR arrangement, the servicing fee cash flows on a portfolio of mortgage loans after payment of the basic servicing fee.

Excess MSRs.  MSRs with a co-investment partner pursuant to which the servicer receives a basic servicing fee and the servicer and co-investment partner share the excess fees. This co-investment strategy reduces the required upfront capital from the servicer.

Federal National Mortgage Association (Fannie Mae or FNMA).   FNMA was federally chartered by Congress in 1938 to support liquidity, stability, and affordability in the secondary mortgage market, where existing mortgage-related assets are purchased and sold. Fannie Mae buys mortgage loans from lenders and resells them as mortgage backed securities in the secondary mortgage market.

Federal Housing Administration (FHA).  The FHA is a U.S. federal government agency within the Department of Housing and Urban Development (HUD). It provides mortgage insurance on loans made by FHA-approved lenders in compliance with FHA guidelines throughout the United States.

Federal Housing Finance Agency (FHFA). A U.S. federal government agency that is the regulator and conservator of Fannie Mae and Freddie Mac and the regulator of the 12 Federal Home Loan Banks.

Float Income.  Interest income earned by a servicer from funds on deposit. These funds are comprised of (i) funds collected from borrowers during the period of time between receipt of the funds and the remittance of the funds to investors and (ii) funds collected from borrowers for the payment of taxes and insurance, where applicable.

Federal Home Loan Mortgage Corporation (Freddie Mac or FHLMC).  Freddie Mac was chartered by Congress in 1970 to stabilize the nation's residential mortgage markets and expand opportunities for homeownership and affordable rental

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housing. Freddie Mac participates in the secondary mortgage market by purchasing mortgage loans and mortgage-related securities for investment and by issuing guaranteed mortgage-related securities.

Government National Mortgage Association (Ginnie Mae or GNMA).  GNMA is a self financing, wholly-owned U.S. Government corporation within HUD. Ginnie Mae guarantees the timely payment of principal and interest on MBS backed by federally insured or guaranteed loans - mainly loans insured by the FHA or guaranteed by the VA. Ginnie Mae securities are the only MBS to carry the full faith and credit guarantee of the U.S. federal government.

Government-Sponsored Enterprise (GSE).  Certain entities established by the U.S. Congress to provide liquidity, stability and affordability in residential housing. These agencies are Fannie Mae, Freddie Mac and the 12 Federal Home Loan Banks.

High Touch Servicing.  A servicing model that is designed to increase borrower repayment performance with a view towards home ownership preservation and to decrease borrower delinquencies and defaults on mortgage portfolios. This model emphasizes a focus on loss mitigation from early delinquency through resolution via frequent interactions with borrowers by telephone, mail, electronic communications and other personal contact methods.

Home Affordable Modification Program (HAMP).  A U.S. federal government program designed to help eligible homeowners avoid foreclosure through mortgage loan modifications. Participating servicers may be entitled to receive financial incentives in connection with loan modifications they enter into with eligible borrowers and subsequent success fees to the extent that a borrower remains current in any agreed upon loan modification.

Home Affordable Refinance Program (HARP).  A U.S. federal government program designed to help eligible homeowners refinance their existing mortgage loans. The mortgage must be owned or guaranteed by a GSE, and applicants must be up-to-date on their mortgage payments but unable to obtain refinancing because the value of their homes has declined.

Interest Rate Lock Commitments (IRLC). Agreements under which the interest rate and the maximum amount of the mortgage loan are set prior to funding the mortgage loan.

Loan Modification.  Temporary or permanent modifications to the interest rate, amortization period and term of the borrower’s original mortgage loan. Loan modifications are usually made to loans that are in default, or in imminent danger of defaulting.

Loan-to-Value Ratio (LTV).  The UPB of a mortgage loan as a percentage of the total appraised or market value of the property that secures the loan. An LTV over 100% indicates that the UPB of the mortgage loan exceeds the value of the property.

Loss Mitigation.  The range of servicing activities provided by a servicer in an attempt to minimize the losses suffered by the owner of a defaulted mortgage loan. Loss mitigation techniques include short-sales, deed-in-lieu of foreclosures and loan modifications, among other options.

Making Home Affordable Plan (MHA).  A U.S. federal government program designed to help eligible homeowners avoid foreclosure and keep their homes by refinancing their existing mortgages. MHA loans are available to eligible homeowners with LTV ratios of up to 125% under the HARP program. In addition the MHA also includes the HAMP modification program and other similar type programs.

Mortgage-Backed Securities (MBS). A type of asset-backed security that is secured by a group of mortgage loans.

Mortgage Servicing Right (MSR).  The right and obligation to service a loan or pool of loans and to receive a servicing fee as well as certain ancillary income. MSRs may be bought and sold, resulting in the transfer of loan servicing obligations.

Non-Conforming Loan.  A mortgage loan that does not meet the standards of eligibility for purchase or securitization by Fannie Mae, Freddie Mac or Ginnie Mae.

Non-Recoverable Advance.  A servicing advance made by a servicer, which will not ultimately be recoverable by the servicer from funds received upon liquidation of the underlying property of the mortgage loan.

Originations.  The process through which a lender provides a mortgage loan to a borrower.

P&I Advance.  A servicing advance to cover scheduled payments of principal and interest that have not been timely paid by borrowers. P&I Advances serve to facilitate the cash flows paid to holders of securities issued by the residential MBS trust. The servicer is not the insurer or guarantor of MBS and thus has the right to cease the advancing of P&I, when the servicer deems the next advance nonrecoverable.

4

Prepayment Speed.  The rate at which voluntary mortgage prepayments occur or are projected to occur. The statistic is calculated on an annualized basis and expressed as a percentage of the outstanding principal balance.

Primary Servicer.  The servicer that owns the right to service a mortgage loan or pool of mortgage loans. This differs from a subservicer, which has a contractual agreement with the primary servicer to service a mortgage loan or pool of mortgage loans in exchange for a subservicing fee.

Prime Mortgage Loan.  Generally, a high-quality mortgage loan that meets the underwriting standards set by Fannie Mae, Freddie Mac and Ginnie Mae and is eligible for purchase or securitization in the secondary mortgage market. Prime Mortgage loans generally have lower default risk and are made to borrowers with excellent credit records and a monthly income at least three to four times greater than their monthly housing expenses (mortgage payments plus taxes and other debt payments) as well as significant other assets. Mortgages not classified as conventional mortgages are generally called either non-prime or Alt-A.

Private Label Securitizations. Securitizations that do not meet the criteria set by Fannie Mae, Freddie Mac or Ginnie Mae.

Real Estate Owned (REO).  Property acquired by the servicer on behalf of the owner of a mortgage loan or pool of mortgage loans, usually through foreclosure or a deed-in-lieu of foreclosure on a defaulted loan. The servicer or a third party real estate management firm is responsible for selling the REO. Net proceeds of the sale are returned to the owner of the related loan or loans. In most cases, the sale of REO does not generate enough to pay off the balance of the loan underlying the REO, causing a loss to the owner of the related mortgage loan.

Refinancing.  The process of working with existing borrowers to refinance their mortgage loans. By refinancing loans for borrowers we currently service, we retain the servicing rights, thereby extending the longevity of the servicing cash flows.

Reverse Mortgage. A reverse mortgage, also referred to as a home equity conversion mortgage, enables seniors to borrow against the value of their home, and no payment of principal or interest is required until the death of the borrower or the sale of the home.

Servicing.  The performance of contractually specified administrative functions with respect to a mortgage loan or pool of mortgage loans. Duties of a servicer typically include, among other things, collecting monthly payments, maintaining escrow accounts, providing periodic monthly statements to the borrower and monthly reports to the loan owners or their agents and managing insurance. A servicer is generally compensated with a specific fee outlined in the contract established prior to the commencement of the servicing activities.

Servicing Advances.  In the course of servicing loans, servicers are required to make advances that are reimbursable from collections on the related mortgage loan or pool of loans. There are typically two types of servicing advances: T&I Advances and Corporate Advances. Corporate advances can include homeowner association fees as well as fees to preserve and protect the property and legal fees to foreclose on the property. Servicing advances are reimbursed to the servicer if and when the borrower makes a payment on the underlying mortgage loan at the time the loan is modified or upon liquidation of the underlying mortgage loan. The types of servicing advances that a servicer must make are set forth in its servicing agreement with the owner of the mortgage loan or pool of mortgage loans. In some instances a servicer is allowed to cease Servicing Advances, if those advances will not be recoverable from the property securing the loan.

Servicing Advance Facility.  A secured financing facility backed by a pool of mortgage servicing advance receivables made by a servicer to a certain pool of mortgage loans.

Subservicing.  Subservicing is the process of outsourcing the duties of the primary servicer to a third party servicer. The third party servicer performs the servicing responsibilities for a fee and is typically not responsible for making servicing advances. The Servicer is contractually liable to the owner of the loans for the activities of the subservicer.

T&I Advance.  A servicing advance to pay specified expenses associated with the preservation of a mortgaged property or the liquidation of defaulted mortgage loans, including but not limited to property taxes, insurance premiums or other property-related expenses that have not been timely paid by borrowers in order for the lien holder to maintain their interest in the property.

Unpaid Principal Balance (UPB).  The amount of principal outstanding on a mortgage loan or a pool of mortgage loans. UPB is used together with the servicing fees and ancillary income as a means of estimating the future revenue stream for a servicer.

5

Warehouse Facility.  A type of facility used to finance mortgage loan originations. Pursuant to a warehouse facility, a loan originator typically agrees to transfer to a counterpart certain mortgage loans against the transfer of funds by the counterpart, with a simultaneous agreement by the counterpart to transfer the loans back to the originator at a date certain, or on demand, against the transfer of funds from the originator.

Wholesale Originations.  A type of mortgage loan origination pursuant to which a lender acquires refinancing and purchase money mortgage loans from third party mortgage brokers or correspondent lenders.

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:

•our ability to efficiently service higher risk loans;

• change in delinquencies for the loans we service or originate, increases in interest rates, our ability to refinance existing loans, and increases in defaults;

•our ability to grow our loan originations volume;

• 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 MSRs, subservicing contracts, servicing platforms and originations platforms;

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

• errors in our financial models or changes in assumptions and requirements to write down the value of certain assets;

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

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

• our substantial indebtedness;

• our potential need to incur more debt;

•the termination of our servicing rights and subservicing contracts;

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

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

• changes to HARP, HAMP, Making Home Affordable Plan or other similar government programs;

6

•changes in prevailing interest rates;

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

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

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

•our exposure to adjustable rate mortgage loans and loan modifications;

•the geographic concentration of our servicing portfolio;

• our ability to follow the specific guidelines of GSEs or a significant change in such guidelines;

• changes in our business relationships with the Fannie Mae, Freddie Mac, Ginnie Mae and others that facilitate the issuance of MBS;

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

• 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 and our ability to mitigate the impact of technology failures;

•changes to our servicer ratings;

•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;

• the impact of operating in a highly regulated industry, 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), on our business activities and practices, costs of operations and overall results of operations;

•increased legal proceedings and related costs;

• the impact on our servicing practices as a result of a consent judgment against one of the largest non-bank servicers by certain federal and state agencies;

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

• 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;

•loss of our licenses;

•challenges to the validity of foreclosure actions and judicial overturning of foreclosures;

• delays in foreclosure proceedings due to lack of judicial resources and new legislation to establish certain lending and borrowing practices;

7

• volatility in our common stock price;

•conflicts of interest with our principal stockholder;

•reliance on our subsidiaries to provide funding to meet our financial obligations and dividends;

•provisions in our governing documents that could delay or prevent a change of control of us; and

•the right of certain of our stockholders to engage or invest in the same or similar businesses as us.

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 included in Nationstar Mortgage Holdings Inc.'s Annual Report on Form 10-K filed February 27, 2014 for further information on these and other factors affecting us.

8

PART I.Financial Information

Item 1. Consolidated Financial Statements

NATIONSTAR MORTGAGE HOLDINGS INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(amounts in thousands)

	March 31, 2014			December 31, 2013
	(unaudited)
Assets
Cash and cash equivalents	$	404,073		$	441,902
Restricted cash	471,635			592,747
Accounts receivable	4,057,477			5,636,482
Mortgage loans held for sale, $1,741,126 and $2,585,340 at fair value, respectively	1,741,126			2,603,380
Mortgage loans held for investment, principally subject to nonrecourse debt - Legacy Assets, net of allowance for loan losses of $3,549 and $2,144 respectively	204,392			211,050
Reverse mortgage interests	1,620,879			1,434,506
Mortgage servicing rights, $2,576,550 and $2,488,283 at fair value, respectively	2,590,780			2,503,162
Property and equipment, net of accumulated depreciation of $83,011 and $74,723 respectively	119,306			119,185
Derivative financial instruments	95,774			123,878
Other assets	327,121			360,397
Total assets	$	11,632,563		$	14,026,689
Liabilities and stockholders' equity
Notes payable	$	4,591,998		$	6,984,351
Unsecured senior notes	2,444,020			2,444,062
Payables and accrued liabilities	1,189,430			1,308,450
Derivative financial instruments	6,377			8,526
Mortgage servicing liabilities	82,210			82,521
Other nonrecourse debt	2,306,701			2,208,881
Total liabilities	10,620,736			13,036,791
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, 90,787 shares and 90,330 shares issued at March 31, 2014 and December 31, 2013, respectively	906			906
Additional paid-in-capital	571,640			566,642
Retained earnings	446,377			422,341
Treasury shares; 317 shares and 168 shares at cost, respectively	(11,727		)	(6,944		)
Accumulated other comprehensive income	—			1,963
Total Nationstar Inc. stockholders' equity	1,007,196			984,908
Noncontrolling interest	4,631			4,990
Total equity	1,011,827			989,898
Total liabilities and equity	$	11,632,563		$	14,026,689

See accompanying notes to the consolidated financial statements.

9

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,
	2014			2013
Revenues:
Servicing fee income	$	240,164		$	197,596
Other fee income	101,547			44,879
Total fee income	341,711			242,475
Gain on mortgage loans held for sale	127,936			188,587
Total revenues	469,647			431,062
Expenses and impairments:
Salaries, wages and benefits	156,595			134,987
General and administrative	156,200			125,642
Loss on foreclosed real estate and other	600			2,007
Occupancy	7,738			5,935
Total expenses and impairments	321,133			268,571
Other income (expense):
Interest income	43,943			29,608
Interest expense	(156,600		)	(92,374		)
Gain on interest rate swaps and caps	2,821			1,268
Total other income (expense)	(109,836		)	(61,498		)
Income before taxes	38,678			100,993
Income tax expense	15,001			38,377
Net income	23,677			62,616
Less: Net loss attributable to noncontrolling interests	(359		)	—
Net income attributable to Nationstar Inc.	24,036			62,616
Other comprehensive income (loss), net of tax:
Change in value of designated cash flow hedge	(1,963		)	—
Comprehensive income	$	22,073		$	62,616
Earnings per share:
Basic earnings per share	$	0.27		$	0.70
Diluted earnings per share	$	0.27		$	0.70
Weighted average shares:
Basic	89,342			89,293
Dilutive effect of stock awards	733			649
Diluted	90,075			89,942
Dividends declared per share	$	—		$	—

See accompanying notes to the consolidated financial statements.

10

NATIONSTAR MORTGAGE HOLDINGS INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(amounts in thousands)

	Common Shares		Common Stock			Additional Paid-in Capital			Retained Earnings		Treasury shares			Common shares held by subsidiary			Accumulated Other Comprehensive Income			Total Nationstar Inc. Equity			Non-controlling interests			Total Stockholders’ Equity
Balance at December 31, 2012	90,460		$	905		$	556,056		$	205,287	$	—		$	(4,566	)	$	—		$	757,682		$	—		$	757,682
Shares issued under incentive plan	82		3			(3		)	—		—			—			—			—			—			—
Change in the value of cash flow hedge, net of tax of $1,183	—		—			—			—		—			—			1,963			1,963			—			1,963
Share-based compensation	—		—			10,574			—		—			—			—			10,574			—			10,574
Excess tax benefit from share-based compensation	—		—			4,579			—		—			—			—			4,579			—			4,579
Withholding tax related to share based settlement of common stock by management	—		—			—			—		(6,944		)	—			—			(6,944		)	—			(6,944		)
Shares cancelled	(212	)	(2		)	(4,564		)	—		—			4,566			—			—			—			—
Contributions from joint venture members to non-controlling interests	—		—			—			—		—			—			—			—			4,990			4,990
Net income	—		—			—			217,054		—			—			—			217,054			—			217,054
Balance at December 31, 2013	90,330		906			566,642			422,341		(6,944		)	—			1,963			984,908			4,990			989,898
(unaudited)
Shares issued under incentive plan	457		—			—			—		—			—			—			—			—			—
Change in the value of cash flow hedge, net of tax of $1,183	—		—			—			—		—			—			(1,963		)	(1,963		)	—			(1,963		)
Share-based compensation	—		—			2,809			—		—			—			—			2,809			—			2,809
Excess tax benefit from share-based compensation	—		—			2,189			—		—			—			—			2,189			—			2,189
Withholding tax related to share based settlement of common stock by management	—		—						—		(4,783		)	—			—			(4,783		)	—			(4,783		)
Net income	—		—			—			24,036		—			—			—			24,036			(359		)	23,677
Balance at March 31, 2014	90,787		$	906		$	571,640		$	446,377	$	(11,727	)	$	—		$	—		$	1,007,196		$	4,631		$	1,011,827

See accompanying notes to the consolidated financial statements.

11

NATIONSTAR MORTGAGE HOLDINGS INC. AND SUBSIDIARIES

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS

(amounts in thousands)

	For the three months ended March 31,
	2014			2013
Operating activities
Net income	$	24,036		$	62,616
Adjustments to reconcile net income to net cash (used in) / provided by operating activities:
Share-based compensation	2,809			2,858
Loss on foreclosed real estate and other	600			2,007
(Gain) / loss on derivatives including ineffectiveness on interest rate swaps and caps	(2,821		)	(1,268		)
Fair value changes in excess spread financing	(3,369		)	23,891
Depreciation and amortization	8,792			3,901
Fair value changes and amortization/accretion of mortgage servicing rights	78,687			9,384
Fair value change in mortgage servicing rights financing liability	(10,788		)	—
Amortization (accretion) of premiums/discounts	9,959			9,509
Gain on mortgage loans held for sale	(127,936		)	(188,587		)
Mortgage loans originated and purchased, net of fees	(5,402,862		)	(3,781,116		)
Proceeds on sale of and payments of mortgage loans held for sale	6,361,308			3,694,859
Net tax effect of stock grants	(2,189		)	(2,660		)
Cash settlement on derivative financial instruments	—			(129		)
Changes in assets and liabilities:
Accounts receivable, including servicing advances, net	(12,107		)	81,094
Reverse mortgage funded advances	(197,529		)	(178,181		)
Other assets	12,814			6,486
Payables and accrued liabilities	(122,141		)	(104,947		)
Net cash provided by (used in) operating activities	617,263			(360,283		)

Continued on following page.

12

NATIONSTAR MORTGAGE HOLDINGS INC. AND SUBSIDIARIES

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Continued)

(amounts in thousands)

	For the three months ended March 31,
	2014			2013
Investing activities
Property and equipment additions, net of disposals	(8,913		)	(5,867		)
Purchases of reverse mortgage servicing rights and interests	—			(50,198		)
Deposits on/purchase of forward mortgage servicing rights, net of liabilities incurred	(93,092		)	(266,625		)
Loan repurchases from Ginnie Mae	—			(8,815		)
Proceeds from sales of REO	23,498			4,157
Proceeds on sale of servicer advances	182,871			—
Acquisition of Greenlight Financial Services and other businesses, net	—			(12,500		)
Net cash provided by (used in) investing activities	104,364			(339,848		)
Financing activities
Issuance of unsecured senior notes, net	—			599,269
Transfers (to) / from restricted cash, net	104,225			32,723
Issuance of participating interest financing in reverse mortgage interests	103,324			166,646
Issuance of excess spread financing	37,859			192,730
Decrease in notes payable	(975,156		)	(191,700		)
Proceeds from mortgage servicing rights financing	20,651			—
Repayment of nonrecourse debt – Legacy assets	(2,998		)	(2,612		)
Repayment of excess spread financing	(42,717		)	(20,881		)
Debt financing costs	(2,050		)	(9,750		)
Net tax benefit for stock grants issued	2,189			2,660
Contributions from joint venture member to noncontrolling interests	—			4,990
Redemption of shares for stock vesting	(4,783		)	(6,554		)
Net cash provided by (used in) financing activities	(759,456		)	767,521
Net increase in cash and cash equivalents	(37,829		)	67,390
Cash and cash equivalents at beginning of period	441,902			152,649
Cash and cash equivalents at end of period	$	404,073		$	220,039
Supplemental disclosures of non-cash activities
Transfer of mortgage loans held for investment to REO at fair value	$	1,336		$	1,454
Transfer of reverse mortgage interest to REO at fair value	11,156			—
Mortgage servicing rights resulting from sale or securitization of mortgage loans	58,304			31,268
Tax related share-based settlement of common stock	4,783			6,554
Liabilities incurred from purchase of forward mortgage servicing rights	6,494			365,567

See accompanying notes to the consolidated financial statements.

13

NATIONSTAR MORTGAGE HOLDINGS INC. AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

(dollars in thousands, unless otherwise stated)

1. Nature of Business and Basis of Presentation

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 enterprises (GSE) or other third-party investors in the secondary market. Nationstar Mortgage LLC (Nationstar) is the Company's principal operating subsidiary.

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 February 27, 2014. The results of operations for the interim periods disclosed are not necessarily indicative of the results that may be expected for the full year or any future period. 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.

2. Recent Accounting Developments

Accounting Standards Update No 2013-10, Derivatives and Hedging: Inclusion of the Fed Funds Effective Swap Rate (or Overnight Index Swap Rate) as a Benchmark Interest Rate for Hedge Accounting Purposes (ASU 2013-10), was created to expand the benchmarks that can be used in hedge and derivative accounting. Currently, the only rates that can be used as benchmarks are the rate on Treasury obligations of the U.S. government (UST) and the London Interbank Offered Rate (LIBOR) swap rate. This update provides that the Fed Funds Effective Swap Rate (OIS) can also be used as a benchmark rate in U.S. hedge accounting. The amendment update is effective for any hedging relationships entered into after July 17, 2013. The adoption of ASU 2013-10 did not have a material impact on our financial condition, liquidity or results of operations.

Accounting Standards Update No 2013-11, Income Taxes: Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists (ASU 2013-11), was created to eliminate the differences in presenting unrecognized tax benefits. This update specifies that unrecognized tax benefits should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss or a tax credit carryforward. When a net operating loss carryforward, a similar tax loss or tax credit carryforward is not available at a reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes or the entity does not intend to use the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. The amendment update is effective as of December 15, 2013. The adoption of ASU 2013-11 is not expected to have a material impact on our financial condition, liquidity or results of operations.

Accounting Standard Update No 2014-04, Receivables - Troubled Debt Restructuring by Creditors Reclassification of

14

Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure, was created to clarify when a creditor should be considered to have received physical possession of residential real estate property collateralizing a consumer mortgage so that the asset would be derecognized in the receivable and recognized as real estate property. This update specifies that an in substance repossession occurs when either the creditor has obtained the legal title to the property after a foreclosure or the borrower has transferred all interest in the property to the creditor through a deed in lieu of foreclosure or similar legal agreement so that at that time the asset should be reclassified from a loan receivable to real estate property. This update also provides that a disclosure of the amount of foreclosed residential real estate property and the recorded investment in consumer mortgage loans collateralized by residential real estate property that is the process of foreclosure must be included in both interim and annual financial reports. This amendment update is effective for periods for fiscal years beginning after December 15, 2014. The adoption of ASU 2014-04 is not expected to have a material impact on our financial condition, liquidity or results of operations.

3. Acquisition

On May 31, 2013, Nationstar acquired the loan origination operations and certain assets of Greenlight Financial Services, a residential mortgage originator (Greenlight), which was accounted for as a business combination. The assets acquired from Greenlight consist of certain personal property and equipment, intellectual property (including the Greenlight trademark), prepaid expenses and unfunded loan pipeline. Certain post-closing liabilities related to these assets were also assumed as part of the transaction. The aggregate purchase price for these assets was approximately $75.7 million, $65.7 million of which was paid on May 31, 2013, with the balance paid in September 2013. In a separate transaction, Nationstar acquired approximately $98.0 million in UPB of mortgage loans from Greenlight. The cash flows from the loan purchase is included in operating activities, consistent with the normal loan purchase activity. Addtionally, in October 2013, Nationstar acquired certain MSRs from Greenlight for an additional $2.2 million.

The table below presents the purchase price allocation of the acquisition date fair values of the assets acquired and the liabilities assumed as of May 31, 2013 (in thousands):

	May 31, 2013
Intangible assets	$	18,530
Derivative financial instruments	18,101
Equipment	3,561
Prepaid expenses and other assets	700
Payables and accrued liabilities	(589		)
Net assets acquired	40,303
Estimated purchase price	75,700
Goodwill	$	35,397

To determine the fair value of derivative financial instruments, Nationstar utilized the exchange price or dealer market price for the particular derivative contract which the company classifies as Level 2 measurements in the fair value hierarchy (See Note 14 - Fair Value Measurements). The remaining assets acquired and liabilities assumed were estimated using unobservable inputs, which the Company classifies as Level 3 measurements in the fair value hierarchy.

The excess of the purchase price over the fair value of assets acquired and liabilities assumed was allocated to goodwill.

Goodwill of $35.4 million was recorded in our Originations segment. All of the goodwill recorded as a result of this

transaction is expect to be deductible for tax purposes. Additionally, Nationstar included $73.1 million in revenues and $20.7 million in earnings related to Greenlight for three months ended March 31, 2014.

The following table presents the unaudited pro forma combined revenues and net income as if Greenlight net assets had been acquired on January 1, 2012 (in thousands):

15

	For the three months ended March 31,
	2014		2013
Revenues	$	469,647	$	481,366
Net Income	$	24,036	$	76,493

4. Variable Interest Entities and Securitizations

Nationstar or its subsidiaries have been a transferor in connection with a number of securitizations and asset-backed financing arrangements. Nationstar has continuing involvement with the financial assets of the securitizations and the asset-backed financing arrangements. Nationstar has aggregated these securitizations and asset-backed financing arrangements into two groups: 1) securitizations of residential mortgage loans accounted for as sales and 2) financings of advances on loans serviced for others 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. The beneficial interests held consist of both

subordinate and residual securities that were retained at the time of securitization. These securitizations generally do not result

in consolidation of the VIE as the beneficial interests that we hold in the unconsolidated securitization trusts have no value and

no potential for significant cash flows in the future. In addition, at March 31, 2014 and December 31, 2013, we had no other significant assets in our consolidated financial statements related to these trusts. We have no obligation to provide financial support to unconsolidated securitization trusts and have provided no such support. The creditors of the trusts can look only to the assets of the trusts themselves for satisfaction of the debt issued by the trusts and have no recourse against the assets of Nationstar. The general creditors of Nationstar have no claim on the assets of the trusts. Our exposure to loss as a result of our continuing involvement with the trusts is limited to the carrying values, if any, of our investments in the residual and subordinate securities of the trusts, the MSRs that are related to the trusts and the advances to the trusts. We consider the probability of loss arising from our advances to be remote because of their position ahead of most of the other liabilities of the trusts. See Note 6 and Note 8 for additional information regarding advances and MSRs.

Nationstar 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.

Advances on loans serviced for others result from our transfers of residential loan servicing advances to SPEs in exchange for cash. We consolidate these SPEs because the transfers do not qualify for sales accounting treatment or because Nationstar is the primary beneficiary of the VIE.

These VIEs issue debt supported by collections on the transferred advances. We made these transfers under the terms of our

advance facility agreements. We classify the transferred advances on our consolidated balance sheets as accounts receivable

and the related liabilities as notes payable. The SPEs use collections of the pledged advances to repay principal and interest and

to pay the expenses of the entity. Holders of the debt issued by these entities can look only to the assets of the entities

themselves for satisfaction of the debt and have no recourse against Nationstar.

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, 2014 and December 31, 2013 is presented in the following tables (in thousands):

	March 31, 2014				December 31, 2013
	Transfers Accounted for as Secured Borrowings		Reverse Secured Borrowings		Transfers Accounted for as Secured Borrowings		Reverse Secured Borrowings
ASSETS
Restricted cash	$	192,934	$	—	$	272,188	$	—
Reverse mortgage interests	—		1,135,654		—		1,039,645
Accounts receivable	2,295,144		—		4,031,444		—
Mortgage loans held for investment, principally subject to nonrecourse debt	202,614		—		208,263		—
Derivative financial instruments	3,100		—		3,691		—
Other assets	2,651		—		2,375		—
Total Assets	$	2,696,443	$	1,135,654	$	4,517,961	$	1,039,645
LIABILITIES
Notes payable	$	2,773	$	—	$	3,672,726	$	—
Payables and accrued liabilities	2,089,168		—		4,242		—
Nonrecourse debt–Legacy Assets	86,529		—		89,108		—
Participating interest financing	—		1,202,252		—		1,080,718
Total Liabilities	$	2,178,470	$	1,202,252	$	3,766,076	$	1,080,718

When Nationstar sells mortgage loans in securitization transactions that are structured as sales under ASC 820, it may retain one or more bond classes and servicing rights in the securitization. Gains and losses on the assets transferred are recognized based on the carrying amount of the financial assets involved in the transfer, allocated between the assets transferred and the retained interests based on their relative fair value at the date of transfer, other than MSRs. Retained MSRs are recorded at their fair value on the transfer date.

Nationstar did not sell any mortgage loans in securitization transactions that were structured as sales for the three months ended March 31, 2014 or March 31, 2013.

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

	March 31, 2014		December 31, 2013
Total collateral balances	$	3,708,047	$	3,831,473
Total certificate balances	3,719,476		3,843,694
Total mortgage servicing rights at fair value	26,945		30,074

Nationstar has not retained any variable interests in the unconsolidated securitization trusts that were outstanding as of March 31, 2014 or December 31, 2013, 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):

Principal Amount of Loans 60 Days or More Past Due	March 31, 2014		March 31, 2013
Unconsolidated securitization trusts	$	1,033,703	$	1,179,325
	For the three months ended March 31,
Credit Losses	2014		2013
Unconsolidated securitization trusts	$	66,542	$	64,858

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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, 2014				March 31, 2013
	Servicing Fees Received		Loan Repurchases		Servicing Fees Received		Loan Repurchases
Unconsolidated securitization trusts	$	7,778	$	—	$	6,791	$	—

5. Consolidated Statement of Cash Flows-Supplemental Disclosure

Total interest paid for the three months ended March 31, 2014 and 2013 was approximately $123.1 million and $51.8 million, respectively. Income taxes paid for the three months ended March 31, 2014 and 2013 was $18,814 and $46.1 million, respectively.

6. Accounts Receivable

Accounts receivable consists primarily of accrued revenues, including accrued servicing fees and commissions, accrued interest on mortgage loans and securitizations and borrower advances made to securitization trusts, and other third parties as required under various servicing agreements related to delinquent loans, which are ultimately repaid from the securitization trusts or the borrower.

Nationstar may acquire servicer advances in conjunction with the acquisition of MSRs. 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 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.

From time to time, Nationstar may enter into agreements with third parties for the sale of these servicer advance receivables at fair value in conjunction with the financing of the related MSR (see Note 12 - Indebtedness).

Accounts receivable consist of the following (in thousands):

	March 31, 2014		December 31, 2013
Servicer advances, net of purchase discount $44,514 and $62,217, respectively	$	3,748,599	$	5,217,769
Reverse mortgage servicer advances	141,628		93,494
Receivables from trusts and agencies	79,395		105,917
Accrued revenues	46,078		57,082
Accrued interest	1,911		6,970
Other	39,866		155,250
Total accounts receivable	$	4,057,477	$	5,636,482

In conjunction with the January 2013 Purchase Agreement, during the third quarter of 2013, Nationstar closed on certain MSRs and servicer advances with a financial institution. In conjunction with this transaction, the Company acquired approximately $3.6 billion of servicer advances. Based on the acquisition date relative fair values of these acquired servicer advances, Nationstar recorded a $60.1 million purchase discount. As of March 31, 2014 and December 31, 2013, Nationstar has a total of $44.5 million and $62.2 million, respectively, in purchase discounts. During the three month period ended March 31, 2014 and 2013, the Company accreted $3.8 million and $6.1 million, respectively, of the purchase discounts from recovered servicer advances into interest income.

During the fourth quarter of 2013, Nationstar sold approximately $2.7 billion of servicer advances to an unaffiliated third party. Consequently, the related purchase discount of $28.1 million was eliminated from Nationstar's consolidated balance sheets. In 2014, Nationstar sold an additional $1.6 billion of servicer advances, and the related purchase discount of $20.7 million was eliminated from Nationstar's consolidated balance sheet (see Note 12 - Indebtedness).

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7. 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. In addition, Nationstar as servicer may exercise certain rights on loans serviced for Ginnie Mae to repurchase any individual loan in a Ginnie Mae securitization pool if that loan meets certain criteria, including being delinquent greater than 90 days. For any such loans that we have repurchased from Ginnie Mae pools that we intend to securitize or sell in the future, Nationstar has elected to measure these repurchased residential mortgage loans held for sale at fair value. 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.

Certain agreements permit the servicer or master servicer to repurchase previously transferred loans into a securitization trust

once the transferred collateral meets certain criteria including outstanding UPBs, which are referred to as clean-up call rights. During the third quarter 2013, Nationstar exercised clean up calls on several private-label securitizations for which it was the master servicer. The loans were initially acquired at par and are held for sale. $195.8 million was originally purchased through a clean up call, $158.2 million was sold as of December 31, 2013 and $10.7 million remains outstanding as of March 31, 2014. These loans are carried at the lower of cost or market until sold.

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

	March 31, 2014		December 31, 2013
Mortgage loans held for sale – unpaid principal balance	$	1,668,997	$	2,532,881
Mark-to-market adjustment	72,129		70,499
Total mortgage loans held for sale	$	1,741,126	$	2,603,380

The Company may at times repurchase loans that were previously transferred to Ginnie Mae if that loan meets certain criteria, including being delinquent greater than 90 days. Nationstar has also elected to measure these repurchased loans at fair value.

Nationstar had $45.9 million and $69.5 million mortgage loans held for sale on nonaccrual status at March 31, 2014 and December 31, 2013, respectively. The majority of loans on nonaccrual status are Ginnie Mae repurchased loans that were repurchased solely to modify the loans. Upon completion of the modification the loans are expected to be subject to sale to a GSE. The fair value of loans held for sale on nonaccrual status at March 31, 2014, and December 31, 2013, was approximately $40.2 million and $63.5 million, respectively.

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, 2014			March 31, 2013
Mortgage loans held for sale – beginning balance	$	2,603,380		$	1,480,537
Mortgage loans originated and purchased, net of fees	5,402,862			3,781,116
Proceeds on sale of and payments of mortgage loans held for sale	(6,261,204		)	(3,549,535		)
Transfer of mortgage loans held for sale to held for investment or other assets	(3,912		)	(8,409		)
Mortgage loans held for sale – ending balance	$	1,741,126		$	1,703,709

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

Mortgage loans held for investment, principally subject to nonrecourse debt – Legacy Assets, consist of nonconforming or subprime mortgage loans securitized which serve as collateral for the issued debt. These loans were transferred in 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,

19

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 recorded an additional $1.4 million in allowance for loan losses for the three months ended March 31, 2014.

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

	March 31, 2014			December 31, 2013
Mortgage loans held for investment, principally subject to nonrecourse debt - Legacy Assets, net – unpaid principal balance	$	297,628		$	305,085
Transfer discount
Accretable	(16,979		)	(17,362		)
Non-accretable	(72,708		)	(74,529		)
Allowance for loan losses	(3,549		)	(2,144		)
Total mortgage loans held for investment, principally subject to nonrecourse debt - Legacy Assets, net	$	204,392		$	211,050

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

	Three months ended March 31, 2014			Year ended December 31, 2013
Accretable Yield
Balance at the beginning of the period	$	17,362		$	19,749
Additions	—			—
Accretion	(784		)	(3,235		)
Reclassifications from (to) nonaccretable discount	401			848
Disposals	—			—
Balance at the end of the period	$	16,979		$	17,362

Nationstar may periodically modify the terms of any outstanding mortgage loans held for investment, principally 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 $0.4 million for the three months ended March 31, 2014 and $0.8 million for the year ended December 31, 2013. Furthermore, Nationstar considers the decrease in principal, interest, and other cash flows expected to be collected arising from the transferred loans as an impairment.

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

20

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 the 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, 2014		December 31, 2013
	(in thousands)
Credit Quality by Delinquency Status
Performing	$	210,090	$	218,262
Non-Performing	87,538		86,823
Total	$	297,628	$	305,085
Credit Quality by Loan-to-Value Ratio
Less than 60	$	31,084	$	32,885
Less than 70 and more than 60	16,125		14,633
Less than 80 and more than 70	21,021		23,075
Less than 90 and more than 80	26,179		25,536
Less than 100 and more than 90	26,881		25,686
Greater than 100	176,338		183,270
Total	$	297,628	$	305,085

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 not securitized 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 million 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 amounting to 70% 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 recorded these reverse mortgage loans as reverse mortgage interests on the Company's consolidated balance sheets.

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.

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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 whether 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.

Reverse mortgage interests include advances, which are recovered upon the sale of the subject property, and defaulted advances that can be securitized and sold. As of March 31, 2014 and December 31, 2013, Nationstar had $1.6 billion and $1.4 billion, 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, 2014			December 31, 2013
UPB of advances previously securitized by Nationstar	$	1,135,654		$	1,039,645
UPB of advances not securitized	486,195			395,663
Allowance for losses - reverse mortgage interests	(970		)	(802		)
Total reverse mortgage interests	$	1,620,879		$	1,434,506

Nationstar collectively evaluates all reverse mortgage interest assets for impairment. Nationstar recorded a provision for loan losses related to its reverse mortgage interests of $1.0 million for the three months ended March 31, 2014 and $0.8 million for the year ended December 31, 2013.

8. Mortgage Servicing Rights (MSRs)

MSRs at fair value

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 a securitization that qualifies and meets requirements for sale accounting 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.

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.

The fair value of the MSRs is based upon the present value of the expected future cash flows related to servicing these loans. Nationstar receives a base servicing fee ranging from 0.21% 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, ancillary fees and other assumptions (including servicing costs) that management believes are consistent with the assumptions other major market participants use in valuing the MSRs. 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 of its MSRs to assess the reasonableness of the fair value calculated by the cash flow model.

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Certain of the forward loans underlying the MSRs carried at fair value that are owned by Nationstar are credit sensitive in nature and the value of these MSRs are more likely to be affected by changes in credit losses than by 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 by 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, 2014		December 31, 2013
Discount rate	13.69	%	14.17	%
Total prepayment speeds	20.65	%	20.34	%
Expected weighted-average life	4.64 years		4.63 years
Credit losses	20.22	%	22.87	%
Interest Rate Sensitive MSRs	March 31, 2014		December 31, 2013
Discount rate	9.54	%	10.50	%
Total prepayment speeds	10.52	%	8.97	%
Expected weighted-average life	7.06 years		7.88 years
Credit losses	8.05	%	9.12	%

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

	Three months ended March 31, 2014			Year ended December 31, 2013
Fair value at the beginning of the period	$	2,488,283		$	635,860
Additions:
Servicing resulting from transfers of financial assets	58,304			248,381
Purchases of servicing assets	108,312			1,545,584
Changes in fair value:
Due to changes in valuation inputs or assumptions used in the valuation model	(20,645		)	355,586
Other changes in fair value	(57,704		)	(297,128		)
Fair value at the end of the period	$	2,576,550		$	2,488,283
UPB of forward loans serviced for others
Credit sensitive loans	$	264,176,084		$	266,757,777
Interest sensitive loans	62,236,994			56,056,362
Total owned loans	$	326,413,078		$	322,814,139

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, 2014 and December 31, 2013 (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, 2014
Mortgage servicing rights	$	(75,996	)	$	(156,336	)	$	(113,473	)	$	(217,542	)	$	(56,354	)	$	(111,291	)
December 31, 2013
Mortgage servicing rights	$	(74,681	)	$	(151,899	)	$	(101,590	)	$	(195,445	)	$	(89,958	)	$	(178,669	)

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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 owns 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.

Nationstar owns the right to service certain reverse mortgage MSRs with an unpaid principal balance of $28.9 billion as of March 31, 2014 and December 31, 2013. Nationstar utilizes a variety of assumptions in assessing the fair value of its servicing assets or liabilities, with the primary assumptions including discount rates, prepayment speeds, home price index, collateral values and the expected weighted average life. At March 31, 2014 and December 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 based on whether Nationstar acquired the related borrower draws from a predecessor servicer or funded borrower draws under its obligation to service the related HECMs subsequent to the acquisition of the rights to service these loans.

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

	Three months ended						Year ended
	March 31, 2014						December 31, 2013
	Assets			Liabilities			Assets			Liabilities
Activity of MSRs at amortized cost
Balance at the beginning of the period	$	14,879		$	82,521		$	10,973		$	83,238
Additions:
Purchase /Assumptions of servicing rights/obligations	—			—			3,980			—
Deductions:
Amortization/Accretion	(649		)	(311		)	(74		)	(717		)
Balance at end of the period	$	14,230		$	82,210		$	14,879		$	82,521
Fair value at end of period	$	38,430		$	68,965		$	29,192		$	63,996

Subserviced loans

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, 2014 and December 31, 2013, the unpaid balances under subservicing arrangements were $26.6 billion and $35.4 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,
	2014		2013
Servicing fees	$	253,685	$	182,709
Ancillary fees	55,416		36,870
Total servicing and ancillary fees	$	309,101	$	219,579

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9. Other Assets

Other assets consisted of the following (in thousands):

	March 31, 2014		December 31, 2013
Loans subject to repurchase right from Ginnie Mae	$	134,134	$	120,736
Deferred financing costs	66,035		73,030
Goodwill	38,820		38,820
Real estate owned (REO), net	37,734		45,632
Intangible assets	21,180		21,737
Prepaid expenses	16,196		21,993
Receivables from affiliates	5,306		8,861
Collateral deposits on derivative instruments	5,049		25,932
Other	2,667		3,656
Total other assets	$	327,121	$	360,397

For certain loans that Nationstar sold to Ginnie Mae, Nationstar as the issuer 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 a delinquent loan, Nationstar has effectively regained control over the loan, and under GAAP, must re-recognize the loan on its consolidated balance sheets 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 $134.1 million at March 31, 2014 and $120.7 million at December 31, 2013.

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10. Payables and Accrued Liabilities

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

	March 31, 2014		December 31, 2013
Payable to servicing and subservicing investors(1)	359,395		359,214
Payable to insurance carriers and insurance cancellation reserves	166,040		164,244
Loans subject to repurchase from Ginnie Mae	134,134		120,736
Accrued interest	82,840		76,303
MSR purchases payable including advances	53,102		135,759
Current income taxes	47,391		35,961
Repurchase reserves	44,478		40,695
Accrued bonus and payroll	34,102		66,755
Other(2)	267,948		308,783
Total payables and accrued liabilities	$	1,189,430	$	1,308,450

⁽¹⁾Payables to servicing and subservicing investors represents amounts due to investors in connection with the loans we service

and are paid from collections of the underlying loans, insurance proceeds or at time of property disposal.

⁽²⁾ Other payables primarily consist of accrued legal and professional fees, capital lease obligations and amounts payable to

securitization trusts.

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11. 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 derivative financial instruments 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 derivative financial instruments 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 derivative financial instruments 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 and subsequently recognized in interest expense in the same period the hedged forecast transaction affects earnings. 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.

Historically, Nationstar has entered into interest rate swap agreements to hedge the interest payments associated with its

outstanding floating rate financing servicer advance facilities. Prior to March 31, 2014, certain of these derivatives were

designated as cash flow hedges and were recorded at fair value on Nationstar's balance sheet, with any change in fair value

being recorded as an adjustment to other comprehensive income. On March 31, 2014, the Company dedesignated the

remainder of the interest rate swap agreements, with any further changes in fair value being recorded as a charge to gain or loss

in interest rate swaps and caps in Nationstar's consolidated statement of operations.

Associated with the Company's derivatives is $5.0 million and $25.9 million in collateral deposits on derivative instruments recorded in other assets on the Company's balance sheets as of March 31, 2014 and December 31, 2013, respectively.

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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, 2014
ASSETS
MORTGAGE LOANS HELD FOR SALE
Loan sale commitments	2015	$	92,972	$	1,481	$	1,474
DERIVATIVE FINANCIAL INSTRUMENTS
IRLCs	2015	2,892,348		85,069		(2,059		)
Forward MBS trades	2015	2,399,461		6,738		(25,528		)
LPCs	2015	171,834		867		74
Interest rate swaps and caps	2018	107,000		3,100		2,556
LIABILITIES
DERIVATIVE FINANCIAL INSTRUMENTS
IRLCs	2015	33,486		279		2,419
Interest rate swaps on ABS debt	2014-2017	394,341		569		265
Forward MBS trades	2015	1,866,675		5,180		(1,875		)
LPCs	2015	95,019		349		1,340
For the year ended December 31, 2013
ASSETS
MORTGAGE LOANS HELD FOR SALE
Loan sale commitments	2014	$	57,965	$	7	$	(14	)
DERIVATIVE FINANCIAL INSTRUMENTS
IRLCs	2014	3,083,131		87,128		(69,856		)
Forward MBS trades	2014	5,425,663		32,266		19,084
LPCs	2014	197,475		793		(460		)
Interest rate swaps and caps	2018	167,000		3,691		544
LIABILITIES
DERIVATIVE FINANCIAL INSTRUMENTS
IRLCs	2014	260,407		2,698		(1,613		)
Interest rate swaps and caps (1)		—		—		1,576
Interest rate swaps on ABS debt	2014-2017	424,269		834		1,012
Forward MBS trades	2014	1,351,870		3,305		8,713
LPCs	2014	204,486		1,689		(1,603		)

⁽¹⁾ In January and June 2013, Nationstar terminated these interest rate swaps.

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12. Indebtedness

Notes Payable

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

	March 31, 2014				December 31, 2013
	Outstanding		Collateral Pledged		Outstanding		Collateral Pledged
Servicing Segment Notes Payable
MBS advance financing facility	$	524,742	$	606,833	$	560,814	$	651,953
Securities repurchase facility (2011)	34,196		55,603		35,546		55,603
Nationstar agency advance financing facility	775,477		837,790		851,957		918,574
Reverse participations financing facility	58,245		75,784		102,031		124,536
MBS advance financing facility (2012)	50,000		136,378		179,306		220,833
Nationstar Mortgage Advance Receivable Trust	685,109		747,067		1,240,940		1,347,410
Nationstar Servicer Advance Receivables Trust 2013-BA	628,582		709,165		1,579,830		1,764,296
Originations Segment Notes Payable
$1.50 billion warehouse facility	727,778		793,102		797,281		891,648
$750 million warehouse facility	314,830		327,364		639,378		673,599
$700 million warehouse facility	119,991		122,437		111,980		115,629
$600 million warehouse facility	300,395		307,170		214,570		224,162
$400 million warehouse facility	367,330		386,871		447,926		477,980
$300 million warehouse facility	55		58		159,435		166,482
$200 million warehouse facility	5,268		7,786		63,357		93,098
Total notes payable	$	4,591,998	$	5,113,408	$	6,984,351	$	7,725,803

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 $775.0 million in eligible servicing advance receivables. The interest rate is based on LIBOR plus a spread of 2.50% to 4.00%. The maturity date of this facility is March 2015.

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, 2014, 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.

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 $800.0 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 2014. 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.

Reverse participations 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.

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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 $50.0 million. The interest rate is LIBOR plus a spread of 5.00%. The maturity date of this facility is April 2015. This facility is secured by servicing advance receivables.

Nationstar Mortgage Advance Receivable Trust - In June 2013, Nationstar created an advance receivables trust with a number of financial institutions. This trust has variable funding notes (VFNs) with the capacity to borrow up to $1.1 billion. The interest rate on this financial instrument is based on LIBOR plus a spread of 1.15% to 5.30% depending on the class of the note. The maturity date of the VFN is June 2014. Nationstar also issued $1.0 billion of term notes to institutional investors of which $650.0 million remains outstanding. The notes have an average interest rate of 3.26% and mature in June 2016 and June 2018. The notes that were scheduled to mature in June 2014 were redeemed in January 2014. The VFN and the term notes are secured by servicing advance receivables and are nonrecourse to Nationstar.

Nationstar Servicer Advance Receivables Trust 2013-BA - In July 2013, Nationstar created an advance receivables trust with a financial institution. This trust has the capacity to borrow up to $1.0 billion with its interest rate based on LIBOR plus a spread of 2.50%. The maturity date is June 2014. This trust is secured by servicing advance receivables and is nonrecourse to Nationstar. Nationstar terminated this advance receivable facility in May 2014 at which time all outstanding balances had been repaid.

Originations Segment Notes Payable

$1.50 billion warehouse facility - Nationstar has a MRA with a financial institution, which will expire in September 2014. This facility has a committed amount of $1.50 billion. 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 2.25% to 3.25%, which varies based on the underlying transferred collateral.

$750 million warehouse facility - Nationstar has a MRA with a financial institution, which will expire in April 2015. This facility has a committed amount of $750.0 million. The MRA states that from time to time Nationstar may enter in 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 ranging from 1.75% to 2.50% which varies based on the underlying transferred collateral.

$700 million warehouse facility - Nationstar has a MRA with a financial institution, which will expire in August 2014. This facility has a committed amount of $350.0 million and an uncommitted amount of $350.0 million. 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 2.25% to 2.75% which varies based on the underlying transferred collateral.

$600 million warehouse facility - Nationstar has a MRA with a financial services company, as amended, which will expire in June 2014. The facility has a committed amount of $300.0 million and an uncommitted amount of $300.0 million 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% to 3.50% which varies based on the underlying transferred collateral.

$400 million warehouse facility - Nationstar has a MRA with a financial institution, which will expire in June 2014. This facility has a committed amount of $400.0 million. 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 2.25% to 2.75% which varies based on the underlying transferred collateral.

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$300 million warehouse facility - Nationstar has a MRA with a financial institution, which will expire in May 2014. This facility has a committed amount of $150.0 million and an uncommitted amount of $150.0 million. 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 2.50%.

$200 million warehouse facility- Nationstar has a MRA with a financial institution, which will expire in February 2015. This

facility has an uncommitted amount of $200.0 million. 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 2.75%.

$75 million warehouse facility (HCM) - Home Community Mortgage LLC (HCM), an affiliate of Nationstar, has a MRA with a financial institution which will expire in September 2014. This facility has a committed amount of $75.0 million. The MRA states that from time to time HCM may enter into transactions in which HCM 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 HCM at a certain date, or on demand by HCM, against the transfer of funds from HCM. The interest rate is based on LIBOR plus a spread of 2.50% to 3.25% which varies based on the underlying transferred collateral. HCM has not begun financing loans utilizing this facility as of March 31, 2014.

$75 million warehouse facility - Nationstar has a MRA with a financial institution, which will expire in June 2014. This facility has a committed amount of $75.0 million. 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 3.75% to 4.50% which varies based on the underlying transferred collateral. There is no outstanding balance as of March 31, 2014 or December 31, 2013.

ASAP + facility - Nationstar has executed 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, 2014		December 31, 2013
$285 million face value, 10.875% interest rate payable semi-annually, due April 2015	$	283,523	$	283,153
$475 million face value, 6.500% interest rate payable semi-annually, due August 2018	475,000		475,000
$375 million face value, 9.625% interest rate payable semi-annually, due May 2019	379,159		379,360
$400 million face value, 7.875% interest rate payable semi-annually, due October 2020	400,618		400,634
$600 million face value, 6.500% interest rate payable semi-annually, due July 2021	605,720		605,915
$300 million face value, 6.500% interest rate payable semi-annually, due June 2022	300,000		300,000
Total	$	2,444,020	$	2,444,062

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,

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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 indentures for the unsecured senior notes provide that Nationstar may redeem all or a portion of the notes prior to certain fixed dates by paying a make-whole premium plus accrued and unpaid interest and additional interest, if any, to the redemption dates. In addition, Nationstar may redeem all or a portion of the senior notes at any time on or after certain fixed dates at the applicable redemption prices set forth in the indentures plus accrued and unpaid interest and additional interest, if any, to the redemption dates.

Additionally, the indentures provide that on or before certain fixed dates, Nationstar may redeem up to 35% of the aggregate principal amount of the senior notes with the net proceeds of certain equity offerings at a fixed redemption prices, plus accrued and unpaid interest and additional interest, if any, to the redemption dates, subject to compliance with certain conditions.

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.

As of March 31, 2014, the expected maturities of Nationstar's unsecured senior notes based on contractual maturities are as follows (in thousands).

Year	Amount
2014	$	—
2015	285,000
2016	—
2017	—
2018	475,000
Thereafter	1,675,000
Total	$	2,435,000

Other Nonrecourse Debt

A summary of the balances of other nonrecourse debt is presented below (in thousands):

	March 31, 2014		December 31, 2013
Nonrecourse debt - Legacy Assets	$	86,529	$	89,107
Excess spread financing - fair value	978,183		986,410
Participating interest financing	1,202,252		1,103,490
Mortgage servicing rights financing liabilities	39,737		29,874
Total	$	2,306,701	$	2,208,881

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$86.5 million and $89.1 million at March 31, 2014, and December 31, 2013, 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 $294.5 million and $302.0 million at March 31, 2014 and December 31, 2013, 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 $100.6 million and $103.6 million at March 31, 2014 and December 31, 2013, respectively.

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Excess Spread Financing Debt at Fair Value

In conjunction with Nationstar's acquisition of certain MSRs 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 New Residential in which New Residential 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. New Residential has no prior or ongoing obligations associated with the Portfolios.

Contemporaneous with the above, Nationstar entered into refinanced loan agreements with New Residential. 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 thesame 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$978.2 million and $986.4 million at March 31, 2014 and December 31, 2013, respectively. The total outstanding principal balance was $858.7 million and $839.7 million at March 31, 2014 and December 31, 2013, 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, 2014
Excess spread financing	$	29,113	$	60,058	$	21,183	$	44,586	$	22,729	$	40,688
December 31, 2013
Excess spread financing	$	33,156	$	68,636	$	26,492	$	53,753	$	29,219	$	42,611

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. Also, a positive change in the above assumptions would not necessarily correlate with the corresponding decrease in the net carrying amount of the excess spread financing.

Participating Interest Financing

Participating interest financing represents 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 consolidated balance sheet, and recording the pooled HMBS as participating interest financing liabilities on the Company’s consolidated 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 0.14% to 7.02%. The participating interest financing was $1,202.3 million and $1,103.5 million at March 31, 2014 and December 31, 2013, respectively.

Mortgage Servicing Rights Financing

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In December 2013, Nationstar entered into an agreement to sell the basic fee component of certain MSRs and servicer advances under specified terms. Under the terms of this agreement, the transfer of servicing is contingent on the receipt of consents from various third parties. Until these required consents are obtained Nationstar continues to be the named servicer and, for accounting purposes, ownership of the mortgage servicing rights continues to reside with Nationstar. Nationstar continues to account for the MSRs on its consolidated balance sheets. In addition, Nationstar records a MSRs financing liability associated with this financing transaction.

Nationstar has elected to measure the mortgage servicing rights financings at fair value with all changes in fair value recorded as a charge or credit to servicing fee income in the consolidated statements of operations and comprehensive income (loss). The total carrying amount was $39.7 million and $29.9 million as of March 31, 2014 and December 31, 2013, respectively.

Financial Covenants

Nationstar's borrowing arrangements and credit facilities contain customary events of default and financial covenants. Management believes Nationstar was in compliance with all covenants with the exception of one that requires positive net income on a rolling six month basis. As a result of the losses incurred in the quarter ended December 31, 2013, Nationstar was not in compliance with this covenant which is contained in three of its MRAs. Given the improved performance throughout the quarter ended March 31, 2014, we were able to obtain a waiver at no cost from each counterparty for the six month period ending March 31, 2014. Furthermore, Nationstar believes it was in compliance with all covenants as of April 30, 2014 without the need for any additional waivers or consents. At no time was there a payment default or event of default under these agreements.

As of March 31, 2014, management believes Nationstar was in compliance with its remaining financial covenants on it borrowing arrangements and credit facilities.

13. Income Taxes

Income tax expense was as follows (in thousands):

	For the three months ended
	March 31, 2014			March 31, 2013
Tax Expense	$	15,001		$	38,377
Effective tax rate	38.8		%	38.0		%

The Company had a net deferred tax liability of $118.6 million at March 31, 2014 and $102.7 million at December 31, 2013. A valuation allowance of $46.7 million was recorded against deferred tax assets at March 31, 2014 and December 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 (ASC 820), 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, but 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

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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. Cash, cash equivalents, and restricted cash are classified as Level 1 in the fair value disclosures.

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.

In addition, the Company may acquire mortgage loans held for sale from various securitization trusts for which it acts as

servicer through the exercise of various clean-up call options as permitted through the respective pooling and servicing

agreements. The Company has elected to account for these loans at the lower of cost or market. Nationstar classifies these valuations as Level 2 in the fair value disclosures.

Mortgage Loans Held for Investment, principally subject to nonrecourse debt – Legacy Assets – Nationstar determines the fair value of loans held for investment, principally 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 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, ancillary fees, credit losses and costs to service. 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 on 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. These interests are carried at the lower of cost or market in the financial statements. 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 3 in the fair value disclosures.

REO – Nationstar carries REO at fair value and 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

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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 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 rates that are 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, which are carried at amortized cost, 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, 2014 being mortgage prepayment speeds of 10.5%, average life of 4.7 years, recapture rates of 5.0% to 36.4%, and discount rate of 13.5%. Key assumptions at December 31, 2013, were mortgage prepayment speeds of 10.6%, average life of 4.7 years, recapture rates of 5.0% to 35.8%, and discount rate of 13.9%. Changes in fair value of the excess spread financing are recorded as a component of service fee income in Nationstar's consolidated statement of income and comprehensive income. 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	Recapture Rate
For the three months ended March 31, 2014
Low	5.8%	3.2 years	9.1%	5.0%
High	20.2%	5.7 years	19.0%	36.4%
For the year ended December 31, 2013
Low	4.0%	3.4 years	10.1%	5.0%
High	17.6%	5.7 years	20.0%	35.8%

A positive change in the above assumptions would not necessarily correlate with the corresponding decrease in the net carrying amount of the excess spread financing.

Mortgage Servicing Rights 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, 2014 being advance financing rates of 2.4%, advance recovery rates of 24.3%, and working capital. Changes in fair value of the mortgage servicing rights financing liability are recorded as a component of service fee income in Nationstar’s consolidated statements of income and comprehensive income. 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.

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):

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			March 31, 2014
			Recurring Fair Value Measurements
	Total Fair Value		Level 1		Level 2		Level 3
ASSETS
Mortgage loans held for sale(1)	$	1,741,126	$	—	$	1,741,126	$	—
Mortgage servicing rights	2,576,550		—		—		2,576,550
Other assets:
IRLCs	85,069		—		85,069		—
Forward MBS trades	6,738		—		6,738		—
LPCs	867		—		867		—
Interest rate swaps and caps	3,100		—		3,100		—
Total assets	$	4,413,450	$	—	$	1,836,900	$	2,576,550
LIABILITIES
Derivative financial instruments
IRLCs	$	279	$	—	$	279	$	—
Interest rate swaps on ABS debt	569		—		569		—
Forward MBS trades	5,180		—		5,180		—
LPCs	349		—		349		—
Excess spread financing (at fair value)	978,183		—		—		978,183
Mortgage servicing rights financing	39,737		—		—		39,737
Total liabilities	$	1,024,297	$	—	$	6,377	$	1,017,920
			December 31, 2013
			Recurring Fair Value Measurements
	Total Fair Value		Level 1		Level 2		Level 3
ASSETS
Mortgage loans held for sale(1)	$	2,585,340	$	—	$	2,585,340	$	—
Mortgage servicing rights	2,488,283		—		—		2,488,283
Derivative financial instruments:
IRLCs	87,128		—		87,128		—
Forward MBS trades	32,266		—		32,266		—
LPCs	793		—		793		—
Interest rate swaps and caps	3,691		—		3,691		—
Total assets	$	5,197,501	$	—	$	2,709,218	$	2,488,283
LIABILITIES
Derivative financial instruments
IRLCs	$	2,698	$	—	$	2,698	$	—
Interest rate swaps on ABS debt	834		—		834		—
Forward MBS trades	3,305		—		3,305		—
LPCs	1,689		—		1,689		—
Mortgage servicing rights financing	29,874		—		—		29,874
Excess spread financing (at fair value)	986,410		—		—		986,410
Total liabilities	$	1,024,810	$	—	$	8,526	$	1,016,284

⁽¹⁾  Based on the nature and risks of these assets, 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, 2014	Mortgage servicing rights			Excess spread financing			Mortgage Servicing Rights Financing
Beginning balance	$	2,488,283		$	986,410		$	29,874
Transfers into Level 3	—			—			—
Transfers out of Level 3	—			—			—
Total gains or losses
Included in earnings	(78,349		)	(3,369		)	(10,788		)
Included in other comprehensive income	—			—
Purchases, issuances, sales and settlements
Purchases	108,312			—			—
Issuances	58,304			37,859			20,651
Sales	—			—			—
Settlements	—			(42,717		)	—
Ending balance	$	2,576,550		$	978,183		$	39,737

	ASSETS		LIABILITIES
For the year ended December 31, 2013	Mortgage servicing rights		Excess spread financing			Mortgage Servicing Rights Financing
Beginning balance	$	635,860	$	288,089		$	—
Transfers into Level 3	—		—			—
Transfers out of Level 3	—		—			—
Total gains or losses
Included in earnings	58,458		73,333			—
Included in other comprehensive income	—		—			—
Purchases, issuances, sales and settlements
Purchases	1,545,584		—			—
Issuances	248,381		755,344			29,874
Sales	—		—			—
Settlements	—		(130,356		)	—
Ending balance	$	2,488,283	$	986,410		$	29,874

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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, 2014
Assets
REO(1)	$	—	$	—	$	37,734	$	37,734	$	600
Total assets	$	—	$	—	$	37,734	$	37,734	$	600
Year ended December 31, 2013
Assets
REO(1)	$	—	$	—	$	45,632	$	45,632	$	(13,316	)
Total assets	$	—	$	—	$	45,632	$	45,632	$	(13,316	)

⁽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, 2014
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3
Financial assets:
Cash and cash equivalents	$	404,073	$	404,073	$	—	$	—
Restricted cash	471,635		471,635		—		—
Mortgage loans held for sale	1,741,126		—		1,741,126		—
Mortgage loans held for investment, principally subject to nonrecourse debt – Legacy assets	204,392		—		—		180,780
Reverse mortgage interests	1,620,879		—		—		1,596,633
Derivative financial instruments	95,773		—		95,733		—
Financial liabilities:
Notes payable	4,591,998		—		—		4,591,998
Unsecured senior notes	2,444,020		2,456,370		—		—
Derivative financial instruments	6,377		—		6,377		—
Nonrecourse debt - Legacy assets	86,529		—		—		96,298
Excess spread financing	978,183		—		—		978,183
Participating interest financing	1,202,252		—		1,167,915		—
Mortgage servicing rights financing liability	39,737		—		—		39,737
	December 31, 2013
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3
Financial assets:
Cash and cash equivalents	$	441,902	$	441,902	$	—	$	—
Restricted cash	592,747		592,747		—		—
Mortgage loans held for sale	2,603,380		—		2,601,520		—
Mortgage loans held for investment, principally subject to nonrecourse debt – Legacy assets	211,050		—		—		180,435
Reverse mortgage interests	1,434,506		—		—		1,405,197
Derivative financial instruments	123,878		—		123,878		—
Financial liabilities:
Notes payable	6,984,351		—		—		6,984,351
Unsecured senior notes	2,444,062		2,489,886		—		—
Derivative financial instruments	8,526		—		8,526		—
Nonrecourse debt - Legacy assets	89,107		—		—		95,345
Excess spread financing	986,410		—		—		986,410
Participating interest financing	1,103,490		—		1,093,747		—
Mortgage servicing rights financing liability	29,874		—		—		29,874

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 income and comprehensive income, 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.

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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. The following table summarizes information about our restricted stock as of March 31, 2014 under the 2012 Plan (shares in thousands):

	Shares	Weighted Average Grant Date Fair Value	Weighted Average Remaining Contractual Term
Restricted stock outstanding at December 31, 2012	1,293
Grants issued in 2013	307	$37.88	2.0
Forfeited	(56)	$20.46
Shares surrendered to treasury to pay taxes	(168)
Restricted stock outstanding at December 31, 2013	1,376
Grants issued in 2014	620	$29.30	2.9
Forfeited	(14)	$30.10
Shares surrendered to treasury to pay taxes	(149)
Restricted stock outstanding at March 31, 2014	1,833
Restricted stock unvested and expected to vest	977
Restricted stock vested and payable at March 31, 2014	—

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

	2014	2015	2016	2017
Restricted stock expected to vest	23	533	249	172

Total compensation expense, net of forfeitures, for the 2012 Plan for the three months ended March 31, 2014 and 2013 was $2.8 million and $3.0 million, respectively. Nationstar expects to recognize $9.9 million of compensation expense in the last nine months of 2014, $6.8 million in 2015, $2.4 million in 2016 and $0.3 million in 2017.

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.

17. Capital Requirements

Certain of Nationstar's secondary market investors require minimum net worth (capital) requirements, as specified in the respective selling and servicing agreements. To the extent that these requirements are not met, Nationstar's secondary market investors may utilize a range of remedies ranging from sanctions, suspension or ultimately termination of Nationstar's selling and servicing agreements, which would prohibit Nationstar from further originating or securitizing these specific types of mortgage loans or being an approved servicer.

Among Nationstar's various capital requirements related to its outstanding selling agreements, the most restrictive of these requires Nationstar to maintain a minimum adjusted net worth balance of $698.8 million. As of March 31, 2014, Nationstar was in compliance with its selling and servicing capital requirements.

Additionally, Nationstar is required to maintain a minimum tangible net worth of at least $400.0 million as of each quarter-end related to its outstanding Master Repurchase Agreements on its outstanding repurchase facilities. As of March 31, 2014, Nationstar was in compliance with these minimum tangible net worth requirements.

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18. Commitments and Contingencies

Litigation and Regulatory Matters

Nationstar Inc. and its affiliates are routinely and currently involved in a significant number of legal proceedings concerning matters that arise in the ordinary course of business, 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, including the Fair Debt Collection Practices Act and Making Home Affordable loan modification programs. Additionally, along with others in our industry, the Company is subject to repurchase and indemnification claims and may continue to receive claims in the future, relating to the sale of mortgage loans and/or the servicing of mortgage loans and securitizations. The Company is also subject to legal actions or proceedings related to loss sharing and indemnification provisions of our various acquisitions. Certain of the actual legal actions and proceedings include claims for substantial compensatory, punitive and/or statutory damages or claims for an indeterminate amount of damages. In particular, ongoing and other legal proceedings brought under federal or state consumer protection laws may result in a separate fine for each violation of the laws, which, particularly in the case of class action lawsuits, could result in damages substantially in excess of the amount earned from the underlying activities and that could have a material adverse effect on the Company's liquidity and financial position. The certification of any putative class action could substantially increase the Company's exposure to 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, lender-placed insurance and originations.

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 both 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 $4.9 million and $3.5 millionfor the three months endedMarch 31, 2014, and March 31, 2013, respectively, were included in general and administrative expenses 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 $1.8 million to $6.3 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

43

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 11 - Derivative Financial Instruments).

Nationstar has certain MSRs related to approximately $28.9 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, 2014, the Company’s maximum unfunded advance obligation related to these MSRs was approximately $4.2 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 arrangement

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, 2) revenues generated on inter-segment services performed, and 3) interest expense on unsecured senior notes. Expenses are allocated to individual segments based on the estimated value of services performed, including estimated utilization of square footage and corporate personnel as well as 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, 2014
	Servicing			Originations			Operating Segments			Legacy Portfolio and Other			Eliminations			Consolidated
REVENUES:
Servicing fee income	$	254,347		$	—		$	254,347		$	298		$	(14,481	)	$	240,164
Other fee income	86,802			14,792			101,594			(47		)	—			101,547
Total fee income	341,149			14,792			355,941			251			(14,481		)	341,711
Gain/(loss) on mortgage loans held for sale	(1,695		)	116,200			114,505			(672		)	14,103			127,936
Total revenues	339,454			130,992			470,446			(421		)	(378		)	469,647
Total expenses and impairments	205,963			108,320			314,283			6,850			—			321,133
Other income (expense):
Interest income	18,664			21,521			40,185			3,380			378			43,943
Interest expense	(114,626		)	(36,603		)	(151,229		)	(5,371		)	—			(156,600		)
Gain (loss) on interest rate swaps and caps	2,556			—			2,556			265			—			2,821
Total other income (expense)	(93,406		)	(15,082		)	(108,488		)	(1,726		)	378			(109,836		)
Income (loss) before taxes	$	40,085		$	7,590		$	47,675		$	(8,997	)	$	—		$	38,678
Depreciation and amortization	$	4,588		$	2,967		$	7,555		$	1,237		$	—		$	8,792
Total assets	9,015,131			1,992,477			11,007,608			624,955			—			11,632,563

	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 (loss) 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

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20. Guarantor Financial Statement Information

As of March 31, 2014, Nationstar and Nationstar Capital Corporation have issued $2.4 billion aggregate principal amount of unsecured senior notes which mature on various dates through June 1, 2022. 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. Nationstar Inc. and its two direct wholly-owned subsidiaries are 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, 2014 (IN THOUSANDS)
Assets	Nationstar Inc.		Issuer		Guarantor (Subsidiaries)		Non-Guarantor (Subsidiaries)			Eliminations			Consolidated
Cash and cash equivalents	$	—	$	381,635	$	1,714	$	20,724		$	—		$	404,073
Restricted cash	—		276,320		3		195,312			—			471,635
Accounts receivable	—		4,008,370		2,366		46,741			—			4,057,477
Mortgage loans held for sale	—		1,740,951		—		175			—			1,741,126
Mortgage loans held for investment, principally subject to nonrecourse debt–Legacy Asset, net	—		1,778		—		202,614			—			204,392
Reverse mortgage interests	—		1,620,879		—		—			—			1,620,879
Mortgage servicing rights	—		2,590,780		—		—			—			2,590,780
Investment in subsidiaries	1,009,738		204,241		—		—			(1,213,979		)	—
Property and equipment, net	—		114,832		877		3,597			—			119,306
Derivative financial instruments	—		92,674		—		3,100			—			95,774
Other assets	2,089		618,482		347,849		1,848,978			(2,490,277		)	327,121
Total assets	$	1,011,827	$	11,650,942	$	352,809	$	2,321,241		$	(3,704,256	)	$	11,632,563
Liabilities and stockholders’ equity
Notes payable	$	—	$	2,502,831	$	—	$	2,089,167		$	—		$	4,591,998
Unsecured senior notes	—		2,444,020		—		—			—			2,444,020
Payables and accrued liabilities	—		1,203,396		2,994		14,503			(31,463		)	1,189,430
Payables to affiliates	—		2,182,198		116,495		160,121			(2,458,814		)	—
Derivative financial instruments	—		6,377		—		—			—			6,377
Mortgage servicing liabilities	—		82,210		—		—			—			82,210
Other nonrecourse debt	—		2,220,172		—		86,529			—			2,306,701
Total liabilities	—		10,641,204		119,489		2,350,320			(2,490,277		)	10,620,736
Total equity	1,011,827		1,009,738		233,320		(29,079		)	(1,213,979		)	1,011,827
Total liabilities and equity	$	1,011,827	$	11,650,942	$	352,809	$	2,321,241		$	(3,704,256	)	$	11,632,563

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NATIONSTAR MORTGAGE HOLDINGS INC. CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) FOR THE THREE MONTHS ENDED MARCH 31, 2014 (IN THOUSANDS)
	Nationstar Inc.		Issuer			Guarantor (Subsidiaries)		Non-Guarantor (Subsidiaries)			Eliminations			Consolidated
Revenues:
Servicing fee income	$	—	$	254,609		$	7	$	—		$	(14,452	)	$	240,164
Other fee income	—		17,320			27,421		56,806			—			101,547
Total fee income	—		271,929			27,428		56,806			(14,452		)	341,711
Gain on mortgage loans held for sale	—		113,889			—		(27		)	14,074			127,936
Total revenues	—		385,818			27,428		56,779			(378		)	469,647
Expenses and impairments:
Salaries, wages and benefits	—		143,358			1,696		11,541			—			156,595
General and administrative	—		128,927			796		26,477			—			156,200
Loss on foreclosed real estate and other	—		(2,185		)	—		2,785			—			600
Occupancy	—		6,983			95		660			—			7,738
Total expenses and impairments	—		277,083			2,587		41,463			—			321,133
Other income (expense):
Interest income	—		39,710			—		3,855			378			43,943
Interest expense	—		(134,478		)	—		(22,122		)	—			(156,600		)
Gain/(Loss) on interest rate swaps and caps	—		265			—		2,556			—			2,821
Gain/(loss) from subsidiaries	39,037		24,446			—		—			(63,483		)	—
Total other income (expense)	39,037		(70,057		)	—		(15,711		)	(63,105		)	(109,836		)
Income before taxes	39,037		38,678			24,841		(395		)	(63,483		)	38,678
Income tax expense/(benefit)	15,001					—		—			—			15,001
Net income/(loss)	24,036		38,678			24,841		(395		)	(63,483		)	23,677
Less: Net loss attributable to noncontrolling interests	—		(359		)	—		—			—			(359		)
Net income/(loss) excluding noncontrolling interests	$	24,036	$	39,037		$	24,841	$	(395	)	$	(63,483	)	$	24,036

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NATIONSTAR MORTGAGE HOLDINGS INC. CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE THREE MONTHS ENDED MARCH 31, 2014 (IN THOUSANDS)
	Nationstar Inc.			Issuer			Guarantor (Subsidiaries)			Non-Guarantor (Subsidiaries)			Eliminations			Consolidated
Operating activities:
Net income/(loss)	$	24,036		$	39,037		$	24,841		$	(395	)	$	(63,483	)	$	24,036
Adjustments to reconcile net income/(loss) to net cash provided by/(used in) operating activities:
(Gain)/loss from subsidiaries	(39,037		)	(24,446		)	—			—			63,483			—
Share-based compensation	—			2,809			—			—			—			2,809
Loss on foreclosed real estate and other	—			(2,185		)	—			2,785			—			600
Loss on derivatives including ineffectiveness on interest rate swaps and caps	—			(264		)	—			(2,557		)	—			(2,821		)
Fair value changes in excess spread financing	—			(3,369		)	—			—			—			(3,369		)
Depreciation and amortization	—			8,078			43			671			—			8,792
Fair value changes and amortization/accretion of mortgage servicing rights	—			78,687			—			—			—			78,687
Amortization of mortgage servicing rights liability	—			(10,788		)	—			—			—			(10,788		)
Amortization/(accretion) of premiums/(discounts)	—			10,465			—			(506		)	—			9,959
Gain on mortgage loans held for sale	—			(113,889		)	—			27			(14,074		)	(127,936		)
Mortgage loans originated and purchased, net of fees	—			(5,402,512		)	—			(350		)	—			(5,402,862		)
Proceeds on sale of and payments of mortgage available for sale	—			6,343,251			—			5,388			12,669			6,361,308
Net tax effect of stock grants issued	—			(2,189		)	—			—			—			(2,189		)
Cash settlement on derivative financial instruments	—			—			—			—			—			—
Changes in assets and liabilities:
Accounts receivable, including servicing advances, net	—			(4,030,462		)	216			4,018,139			—			(12,107		)
Reverse mortgage funded advances	—			(197,529		)	—			—			—			(197,529		)
Other assets	19,784			2,532,050			(24,272		)	(2,516,153		)	1,405			12,814
Payables and accrued liabilities	—			(120,082		)	(2,956		)	897			—			(122,141		)
Net cash provided by/(used in) operating activities	4,783			(893,338		)	(2,128		)	1,507,946			—			617,263

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	Nationstar Inc.			Issuer			Guarantor (Subsidiaries)				Non-Guarantor (Subsidiaries)			Eliminations		Consolidated
Investing activities:
Property and equipment additions, net of disposals	—			(7,145		)	(65		)		(1,703		)	—		(8,913		)
Purchases of reverse mortgage rights and interests	—			—			—				—			—		—
Deposit on / purchase of forward mortgage servicing rights, net of liabilities incurred	—			(93,092		)	—				—			—		(93,092		)
Loan repurchases from Ginnie Mae	—			—			—				—			—		—
Proceeds from sales of REO	—			23,498			—				—			—		23,498
Proceeds from sale of servicer advances	—			182,871			—			—	—			—		182,871
Acquisition of Greenlight Financial Services and other businesses, net	—			—			—				—			—		—
Net cash used in investing activities	—			106,132			(65		)		(1,703		)	—		104,364
Financing activities:
Issuance of unsecured senior notes	—			—			—				—			—		—
Transfers (to)/from restricted cash, net	—			18,914			—				85,311			—		104,225
Issuance of participating interest financing in reverse mortgage interests	—			103,324			—				—			—		103,324
Issuance of excess spread financing	—			37,859			—				—			—		37,859
Increase/(decrease) in notes payable, net	—			608,403			—				(1,583,559		)	—		(975,156		)
Proceeds from mortgage servicing rights financing	—			20,651			—				—			—		20,651
Repayment of nonrecourse debt–Legacy assets	—			—			—				(2,998		)	—		(2,998		)
Repayment of excess spread financing	—			(42,717		)	—				—			—		(42,717		)
Debt financing costs	—			(2,050		)	—				—			—		(2,050		)
Net tax benefit for stock grants issued	—			2,189			—				—			—		2,189
Contribution to joint venture for noncontrolling interest	—			—			—				—			—		—
Redemption of shares for stock vesting	(4,783		)	—			—				—			—		(4,783		)
Net cash provided by/(used in) financing activities	(4,783		)	746,573			—				(1,501,246		)	—		(759,456		)
Net increase/(decrease) in cash	—			(40,633		)	(2,193		)		4,997			—		(37,829		)
Cash and cash equivalents at beginning of period	—			422,268			3,907				15,727			—		441,902
Cash and cash equivalents at end of period	$	—		$	381,635		$	1,714			$	20,724		$	—	$	404,073

49

NATIONSTAR MORTGAGE HOLDINGS INC. CONSOLIDATING BALANCE SHEET DECEMBER 31, 2013 (IN THOUSANDS)
	Nationstar Inc.		Issuer (Parent)		Guarantor (Subsidiaries)		Non-Guarantor (Subsidiaries)			Eliminations			Consolidated
Assets
Cash and cash equivalents	$	—	$	422,268	$	3,907	$	15,727		$	—		$	441,902
Restricted cash	—		312,120		3		280,624			—			592,747
Accounts receivable	—		1,569,021		2,582		4,064,879			—			5,636,482
Mortgage loans held for sale	—		2,603,380		—		—			—			2,603,380
Mortgage loans held for investment, principally subject to nonrecourse debt–Legacy Asset, net	—		2,786		—		208,264			—			211,050
Reverse mortgage interests	—		1,434,506		—		—			—			1,434,506
Mortgage servicing rights	—		2,503,162		—		—			—			2,503,162
Investment in subsidiaries	968,027		181,545		—		—			(1,149,572		)	—
Property and equipment, net	—		115,765		855		2,565			—			119,185
Derivative financial instruments	—		120,187		—		3,691			—			123,878
Other assets	21,872		4,683,749		323,346		3,373,048			(8,041,618		)	360,397
Total assets	$	989,899	$	13,948,489	$	330,693	$	7,948,798		$	(9,191,190	)	$	14,026,689
Liabilities and members’ equity
Notes payable	$	—	$	3,311,625	$	—	$	3,672,726		$	—		$	6,984,351
Unsecured senior notes	—		2,444,062		—		—			—			2,444,062
Payables and accrued liabilities	—		1,319,172		5,950		14,791			(31,463		)	1,308,450
Payables to affiliates	—		3,694,782		116,349		4,199,023			(8,010,154		)	—
Derivative financial instruments	—		8,526		—		—			—			8,526
Mortgage servicing liabilities	—		82,521		—		—			—			82,521
Other nonrecourse debt	—		2,119,774		—		89,107			—			2,208,881
Total liabilities	—		12,980,462		122,299		7,975,647			(8,041,617		)	13,036,791
Total equity	989,899		968,027		208,394		(26,849		)	(1,149,573		)	989,898
Total liabilities and equity	$	989,899	$	13,948,489	$	330,693	$	7,948,798		$	(9,191,190	)	$	14,026,689

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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
Loss on foreclosed real estate and other	—		296			—		1,711			—			2,007
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 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 benefit	—		38,377			—		—			—			38,377
Net income (loss)	$	62,616	$	62,616		$	22,728	$	(19,595	)	$	(65,749	)	$	62,616

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NATIONSTAR MORTGAGE HOLDINGS INC. CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE THREE MONTHS ENDED MARCH 31, 2013 (IN THOUSANDS)
	Nationstar Inc.			Issuer (Parent)			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
Loss on foreclosed real estate and other	—			296			—			1,711			—			2,007
Loss on derivatives including ineffectiveness on interest rate swaps and caps	—			(263		)	—			(1,005		)	—			(1,268		)
Fair value changes in excess spread financing	—			23,891			—			—			—			23,891
Depreciation and amortization	—			3,850			51			—			—			3,901
Fair value changes and amortization/accretion of mortgage servicing rights	—			9,384			—			—			—			9,384
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 available for sale	—			3,682,566			—			3,309			8,984			3,694,859
Net tax effect of stock grants	(2,660		)	—			—			—			—			(2,660		)
Cash settlement on derivatives financial instruments	—			—			—			(129		)	—			(129		)
Changes in assets and liabilities:
Accounts receivable, including servicer advances, net	—			282,727			(5,840		)	(195,793		)	—			81,094
Reverse mortgage funded advances	—			(178,181		)	—			—			—			(178,181		)
Other assets	3,894			(304,127		)	(3,338		)	315,534			(5,477		)	6,486
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			(495,844		)	19,639			112,028			—			(360,283		)

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	Nationstar Inc.			Issuer (Parent)			Guarantor (Subsidiaries)			Non-Guarantor (Subsidiaries)			Eliminations		Consolidated
Investing activities:
Property and equipment additions, net of disposals	—			(5,346		)	(521		)	—			—		(5,867		)
Purchase of reverse mortgage rights and interests	—			(50,198		)	—			—			—		(50,198		)
Deposit on/purchase of forward mortgage servicing rights, net of liabilities incurred	—			(266,625		)	—			—			—		(266,625		)
Loan repurchases from Ginnie Mae	—			(8,815		)	—			—			—		(8,815		)
Acquisition of Greenlight Financial Services and other businesses, net	—			(12,500		)	—			—			—		(12,500		)
Proceeds from sales of REO	—			4,157			—			—			—		4,157
Net cash provided by/(used in) investing activities	—			(339,327		)	(521		)	—			—		(339,848		)
Financing activities:
Issuance of unsecured senior notes	—			599,269			—			—			—		599,269
Transfers (to)/from restricted cash	—			(49,111		)	(18,766		)	100,600			—		32,723
Issuance of participating interest financing in reverse mortgage interests	—			166,646			—			—			—		166,646
Issuance of excess spread financing	—			192,730			—			—			—		192,730
Increase/(decrease) in notes payable	—			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 member to noncontrolling interests	—			4,990			—			—			—		4,990
Redemption of shares for stock vesting	(6,554		)	—			—			—			—		(6,554		)
Debt financing costs	—			(9,750		)	—			—			—		(9,750		)
Net cash provided by financing activities	(3,894		)	892,209			(18,766		)	(102,028		)	—		767,521
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

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

Nationstar has several agreements to act as the loan subservicer for Springleaf Home Equity, Inc., formerly known as American

General Home Equity, Inc., Springleaf General Financial Services of Arkansas, Inc., formerly known as American General

Financial Services of Arkansas, Inc. and MorEquity, Inc. (collectively, Springleaf) totaling $2.9 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, 2014 and 2013 Nationstar recognized revenue of $2.0 million and $2.1 million, respectively in additional servicing and other performance incentive fees related to these portfolios. At March 31, 2014 and December 31, 2013, Nationstar had an outstanding receivable from Springleaf of $0.7 million and $0.6 million, respectively, which was included as a component of accounts receivable.

Nationstar is the loan servicer for three 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

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unpaid principal balance of the portfolios, which was $0.8 billion and $1.0 billion, as of March 31, 2014 and 2013, respectively. For the three months ended March 31, 2014 and 2013, Nationstar received servicing fees and other performance incentive fees of $1.1 million and $1.2 million, respectively.

Additionally, Nationstar has entered into several agreements with certain entities formed by New Residential, in which New Residential and/or certain funds managed by Fortress own an interest (each a "New Residential Entity"), where Nationstar sold to the related New Residential 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 New Residential 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.

In addition, Nationstar has paid $17.1 million to New Residential for delinquent service fees in advance of the contractual due date. This amount will be ultimately netted against future remittances as related to service fee amounts. This amount is

recorded as an offset to outstanding excess spread financing in our financial statements.

The fair value on the outstanding liability related to these agreements was $978.2 million and $986.4 million at March 31, 2014 and December 31, 2013, respectively.

In February 2013, Nationstar acquired certain fixed and adjustable rate reverse mortgage loans with an unpaid principal balance totaling $83.1 million 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 amounting to 70% 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.

In March 2013, certain wholly owned subsidiaries of Nationstar entered into a marketing services agreement to assist in the

development and optimization of their digital marketing initiatives, such as search engine optimization, paid search marketing,

social marketing, display marketing and retargeting with Propel Marketing, a wholly owned subsidiary of GateHouse Media LLC, formerly known as GateHouse Media, Inc. (Gatehouse). Certain of Fortress funds owned approximately 40% of Gatehouse at the time of the marketing services agreement.

In December 2013, we launched a new servicing acquisition structure. Under this structure, we agreed to sell to a joint venture

entity capitalized by New Residential and other investors (collectively, the Purchaser), approximately $2.7 billion of servicer

advances currently outstanding on three pools of residential, non-agency mortgage loans, with the potential for up to $6.3

billion. We also agreed to the sale of the basic fee component of related mortgage servicing rights of approximately $44.3 billion of UPB with potential for up to $130.1 billion of UPB. We will continue to act as named servicer under each servicing agreement until servicing is transferred to the Purchaser. After the transfer of servicing under any servicing agreement to the Purchaser, we will subservice the applicable residential mortgage loans.

While the transfer of the mortgage servicing rights to New Residential is intended to achieve the economic result of a sale of

mortgage servicing rights, we will account for the transactions as financings until the required third party consents are obtained

and ownership, for accounting purposes, of the MSRs transfer to New Residential.

Special purpose subsidiaries of Nationstar previously issued approximately $2.1 billion of nonrecourse variable funding notes

(the Notes) to finance the advances funded or acquired by Nationstar. The Notes were issued through two wholly-owned special purpose entities (the Issuers) pursuant to two servicer advance facilities. Pursuant to the Sale Agreement, New Residential purchased the outstanding equity of the wholly-owned special purpose entities of Nationstar that own the Issuers (the Depositors). On the sale date, New Residential and Nationstar amended and restated the transaction documents for each facility. Under these amended and restated transaction documents for each facility, Nationstar will continue to sell future service advances to New Residential, and New Residential will sell the new servicer advances to the Depositors.

Nationstar received approximately $307.3 million in cash proceeds from the Sale Agreement. The fair value of the outstanding

liability related to the Sale Agreement was $39.7 million at March 31, 2014.

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In January 2014, Nationstar entered into two Sale Supplements (together with the Master Servicing Rights Purchase Agreement, collectively the “January Sale Agreement”) with the Purchaser. Under the January Sale Agreement, Nationstar sold to the Purchaser the right to repayment on approximately $277.4 million of servicer advances related to non-agency mortgage loans. In addition, Nationstar also sold the right to receive the basic fee component of the related mortgage servicing rights of approximately $8.3 billion of UPB, in exchange for the Purchaser remitting a portion of the basic fee to Nationstar continuing to service the mortgage loans. Nationstar received approximately $31.0 million in cash proceeds from the January Sale Agreement.

In February 2014, Nationstar entered into a Sale Supplement (together with the Master Servicing Rights Purchase Agreement, collectively the “February Sale Agreement”) with the Purchaser. Under the February Sale Agreement, Nationstar sold to the Purchaser the right to repayment on approximately $756.2 million of servicer advances related to non-agency mortgage loans. In addition, Nationstar also sold the right to receive the basic fee component of the related mortgage servicing rights of approximately $9.4 billion of UPB, in exchange for the Purchaser remitting a portion of the basic fee to Nationstar continuing to service the mortgage loans. Nationstar received approximately $91.4 million in cash proceeds from the February Sale Agreement.

In March 2014, Nationstar entered into a Sale Supplement (together with the Master Servicing Rights Purchase Agreement, collectively the “March Sale Agreement”) with the Purchaser. Under the March Sale Agreement, Nationstar sold to the Purchaser the right to repayment on approximately $299.1 million of servicer advances related to non-agency mortgage loans. In addition, Nationstar also sold the right to receive the basic fee component of the related mortgage servicing rights of approximately $10.5 billion of UPB, in exchange for the Purchaser remitting a portion of the basic fee to Nationstar continuing to service the mortgage loans. Nationstar received approximately $32.2 million in cash proceeds from the March Sale Agreement.

22. Subsequent Events

In April 2014, Nationstar amended the MRA of the $400 million warehouse facility with a financial institution. Under the terms of the amended agreement, the commitment amount was increased to $500 million.

In April 2014, Nationstar amended the indentures of the variable funding notes that are part of the Nationstar Mortgage advance receivable trust. Under the terms of the amended indenture, the capacity for these notes was decreased to $500 million.

In May 2014, Nationstar entered into Sale Supplements (together with the Master Servicing Rights Purchase Agreement, collectively the “May Sale Agreement”) with the Purchaser. Under the May Sale Agreement, Nationstar sold to the Purchaser the right to repayment on approximately $617 million of servicer advances related to non-agency mortgage loans. In addition, Nationstar also sold the right to receive the basic fee component of the related mortgage servicing rights of approximately $12 billion of UPB, in exchange for the Purchaser remitting a portion of the basic fee to Nationstar for continuing to service the mortgage loans. Nationstar received approximately $75 million in cash proceeds from the April Sale Agreement.

In May 2014, Nationstar entered into a Sale Agreement with a financial institution for the sale of approximately $1.0 billion of residential mortgage loans that are principally insured by the FHA or guaranteed by the VA and received approximately $1.1 billion in cash plus accrued interest on the transaction. Nationstar will continue to act as servicer for the underlying mortgage loans pursuant to a servicing agreement with the financial institution. The transferred loans principally consist of delinquent loans previously pooled into GNMA mortgage-backed securities whereby Nationstar has exercised certain rights as issuer to repurchase loans out of the GNMA securitization pool if that loan meets certain criteria, including being delinquent greater than 90 days. Under the terms of the servicing agreement for these mortgage loans, Nationstar has the right to repurchase any transferred loans that Nationstar, through its remediation efforts as servicer, is able to convert such delinquent mortgage loans into contractually current mortgage loans.

In May 2014, Solutionstar Technology Services LLC (Solutionstar), a subsidiary of Nationstar, entered into an Asset Purchase Agreement to acquire substantially all of the assets of Real Estate Digital, LLC and Cerulean Media Holding Company, LLC (together RED) for $18 million. The acquisition is expected to close in the second quarter of 2014, at which time Solutionstar will assume RED's management team and employees. RED, based in Aliso Viejo, California, is a fee-based real estate services company that provides online marketing, data, transaction management and digital media solutions.

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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 one of the fastest growing mortgage servicers since 2007 as measured by annual percentage growth in UPB, having grown 72.6% annually on a compounded basis. As of March 31, 2014, we serviced approximately 2.3 million residential mortgage loans with an aggregate UPB of $384.4 billion, making us one of the largest non-bank servicers in the United States.

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 by co-investing with financial partners in “excess MSRs.” Subservicing represents another 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, 2014, our primary servicing and subservicing, represented 86.1% and 6.4%, respectively of our total servicing portfolio, with 7.5% of our outstanding servicing portfolio consisting of reverse residential mortgage loans. In addition, we operate several real estate services businesses, designed to meet the changing needs of the mortgage industry, which we have named Solutionstar. These services include providing services for delinquent loans and managing loans in the foreclosure/REO (real-estate owned) process, appraisal, title insurance and settlement services.

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 was approximately $7.1 billion, which was funded through a combination of cash on hand, the

proceeds of a co-investment by New Residential Investment Corp. (New Residential), previously a wholly-owned subsidiary of

Newcastle Investment Corp., and certain funds managed by Fortress Investment Group LLC (Fortress), the proceeds of

advance financing facilities, and 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. We boarded the acquired agency portfolio balance between February and June

2013. During the third quarter of 2013, we completed additional portions of the MSR purchase, closing on and boarding MSRs related to residential mortgage loans with an unpaid principal balance of approximately $83.4 billion, all of which are non-conforming loans in private label securitizations. We closed on and boarded the remaining MSRs relating to $21 billion of UPB in stages during the fourth quarter of 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.”

On May 31, 2013, we acquired the loan origination operations and certain assets of Greenlight Financial Services, a residential

56

mortgage originator (Greenlight), based in Irvine, California. The assets acquired from Greenlight consist of certain personal

property and equipment, intellectual property (including the Greenlight trademark), prepaid expenses and unfunded loan

pipeline. Certain post-closing liabilities related to these assets were also assumed as part of the transaction. The aggregate

purchase price for these assets was $75.7 million. Greenlight, a leading direct-to-consumer originator based in Irvine, California, utilizes a high-volume, rapid turn time funding model with a focus on providing exceptional customer service. Greenlight has proven expertise in television, radio, internet and other mass marketing media and will diversify Nationstar's origination channels and capabilities. The acquisition of Greenlight provides additional capacity to process HARP and recapture loans while creating long-term servicing assets for Nationstar.

In December 2013, we launched a new servicing acquisition structure. Under this structure, we agreed to sell to a joint venture

entity capitalized by various unaffiliated third parties, including New Residential and other investors (collectively, Purchaser),

approximately $2.7 billion of servicer advances currently outstanding on three pools of residential, non-agency mortgage loans,

with the potential for up to $6.3 billion. We also agreed to the sale of the basic fee component of the related mortgage servicing rights of approximately $44.3 billion of unpaid principal balance (UPB) with potential for up to $130 billion of UPB. We will continue to act as named servicer under each servicing agreement until servicing is transferred to the Purchaser. After the transfer of servicing under any servicing agreement to Purchaser, we will subservice the applicable residential mortgage loans. While the transfer of the mortgage servicing rights to New Residential is intended to achieve the economic result of a sale of mortgage servicing rights, we will account for the transactions as financings until the required third party consents are obtained and ownership, for accounting purposes, of the MSRs transfer to New Residential.

In 2014, we sold an additional $617 million of servicer advances to the Purchaser under the existing servicing acquisition structure, and received approximately $75 million in cash proceeds on the transaction. In conjunction with these additional servicer advance sales to the Purchaser, we agreed to the sale of the related mortgage servicing rights of approximately $12 billion of UPB, which are subject to the aforementioned required third party consents.

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 or Form 10-K for the year ended December 31, 2013. There have been no material changes to our critical accounting policies since December 31, 2013.

Selected Financial Data

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

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	March 31, 2014		December 31, 2013
Consolidated Balance Sheets Data:
Cash and cash equivalents	$	404,073	$	441,902
Accounts receivable	4,057,477		5,636,482
Mortgage loans held for sale	1,741,126		2,603,380
Mortgage servicing rights	2,590,780		2,503,162
Total assets	11,632,563		14,026,689
Notes payable	4,591,998		6,984,351
Unsecured senior notes	2,444,020		2,444,062
Other nonrecourse debt	2,306,701		2,208,881
Total liabilities	10,620,736		13,036,791
Total Nationstar Inc. stockholders' equity	1,007,196		984,908

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Consolidated Statements of Operations and Comprehensive Income Data:	For the three months ended March 31,
	2014			2013
Total revenues	$	469,647		$	431,062
Total expenses and impairments	321,133			268,571
Total other expense	(109,836		)	(61,498		)
Income before taxes	38,678			100,993
Total income tax expense	15,001			38,377
Net income	23,677			62,616
Less: Net loss attributable to noncontrolling interests	(359		)	—
Net income attributable to Nationstar Inc.	24,036			62,616
Change in value of designated cash flow hedge	(1,963		)	—
Comprehensive income	$	22,073		$	62,616
Other Financial Data:
Net cash provided by / (used in):
Operating activities	$	617,263		$	(360,283	)
Investing activities	104,364			(339,848		)
Financing activities	(759,456		)	767,521
Adjusted EBITDA(1) (non-GAAP measure)	170,324			178,235
Operating Segments:
Interest expense from unsecured senior notes	50,297			30,690
Change in fair value of mortgage servicing rights	78,349			9,659
Depreciation and amortization	7,555			3,528
Share-based compensation	2,823			2,858
Fair value changes in mortgage servicing rights net of excess spread financing
Mortgage servicing rights:
Due to changes in valuation inputs or assumptions used in the valuation model	(20,645		)	43,361
Other changes in fair value	(57,704		)	(53,020		)
Excess spread financing:
Due to changes in valuation inputs or assumptions used in the valuation model	5,103			18,070
Other changes in fair value	(1,734		)	(41,961		)
Mortgage servicing rights financing liability:
Due to changes in valuation inputs or assumptions used in the valuation model	4,407			—
Other changes in fair value	6,381			—

⁽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 restructuring activities and certain non-cash items. Adjusted EBITDA also excludes results from our legacy asset portfolio and certain securitization trusts that were consolidated upon adoption of the accounting guidance eliminating the concept of a Qualified Special Purpose Entity.

Adjusted EBITDA

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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 and certain securitization trusts that were consolidated upon adoption of the new accounting guidance, 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;

• 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.

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	For the three months ended March 31,
Net Income from Operating Segments to Adjusted EBITDA Reconciliation (dollars in thousands):	2014			2013
Net income	$	24,036		$	62,616
Plus:
Net loss from Legacy Portfolio and Other	8,997			7,686
Loss attributable to noncontrolling interests	(359		)	—
Income tax expense	15,001			38,377
Income from Operating Segments	47,675			108,679
Adjust for:
Interest expense from unsecured senior notes	50,297			30,690
Depreciation and amortization	7,555			3,528
Change in fair value of mortgage servicing rights	78,349			9,659
Amortization of mortgage servicing rights/obligations - at amortized cost	338			(275		)
Change in fair value of mortgage servicing rights financing liability	(10,788		)	—
Share-based compensation	2,823			2,858
Fair value changes on excess spread financing	(3,369		)	23,891
Fair value changes in derivatives	(2,556		)	(795		)
Adjusted EBITDA	$	170,324		$	178,235

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.

The following table summarizes our consolidated operating results for the periods indicated (in thousands, except per share amounts).

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	For the three months ended March 31,
	2014			2013
Revenues:
Servicing fee income	$	240,164		$	197,596
Other fee income	101,547			44,879
Total fee income	341,711			242,475
Gain on mortgage loans held for sale	127,936			188,587
Total revenues	469,647			431,062
Expenses and impairments:
Salaries, wages and benefits	156,595			134,987
General and administrative	156,200			125,642
Loss on foreclosed real estate and other	600			2,007
Occupancy	7,738			5,935
Total expenses and impairments	321,133			268,571
Other income (expense):
Interest income	43,943			29,608
Interest expense	(156,600		)	(92,374		)
Gain on interest rate swaps and caps	2,821			1,268
Total other income (expense)	(109,836		)	(61,498		)
Income before taxes	38,678			100,993
Income tax expense	15,001			38,377
Net income	23,677			62,616
Less: Net loss attributable to noncontrolling interests	(359		)	—
Net income attributable to Nationstar Inc.	24,036			62,616
Other comprehensive income (loss), net of tax:
Change in value of designated cash flow hedge	(1,963		)	—
Comprehensive income	$	22,073		$	62,616
Earnings per share:
Basic earnings per share	$	0.27		$	0.70
Diluted earnings per share	$	0.27		$	0.70
Weighted average shares:
Basic	89,342			89,293
Dilutive effect of stock awards	733			649
Diluted	90,075			89,942
Dividends declared per share	$	—		$	—

Comparison of Consolidated Results for the Three Months Ended March 31, 2014 and 2013

Revenues increased $38.5 million to $469.6 million for the three months ended March 31, 2014 from $431.1 million for the three months ended March 31, 2013, due to increases in our total fee income, partially offset by decreases in 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 $333.3 billion for the three months ended March 31, 2014, compared to $180.4 billion for the three months ended March 31, 2013. The decrease in the gain on loans held for sale was a result of the decrease in the fair value of newly originated loans.

Expenses and impairments increased $52.5 million to $321.1 million for the three months ended March 31, 2014 from $268.6 million for the three months ended March 31, 2013, primarily due to the increase in compensation expenses related to increased

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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 $48.3 million to $109.8 million for the three months ended March 31, 2014 from $61.5 million for the three months ended March 31, 2013, primarily due to a decrease in our net interest margin resulting from higher average outstanding balances on our warehouse and advance facilities combined with a higher average outstanding balance on our unsecured senior notes.

For the three months ended March 31, 2014, we incurred tax expense of $15.0 million, a decrease of $23.4 million over the comparable 2013 period principally due to the decrease in income before taxes during the 2014 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 generally 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 $28.9 billion in reverse residential mortgage loans. 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. In addition, our Solutionstar business unit offers asset management, processing, settlement, valuation, field and appraisal services.

The following table summarizes our consolidated pre-tax operating results for the periods indicated.

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	For the three months ended March 31,
	2014			2013
Revenues:
Servicing fee income	$	254,347		$	206,460
Other fee income	86,802			39,065
Total fee income	341,149			245,525
Gain on mortgage loans held for sale	(1,695		)	(98		)
Total revenues	339,454			245,427
Expenses and impairments:
Salaries, wages and benefits	84,255			69,749
General and administrative	116,695			75,085
Occupancy	5,013			2,948
Loss on foreclosed real estate and other	—			(173		)
Total expenses and impairments	205,963			147,609
Other income (expense):
Interest income	18,664			13,380
Interest expense	(114,626		)	(71,321		)
Loss on interest rate swaps and caps	2,556			795
Total other (expense)	(93,406		)	(57,146		)
Income before taxes	$	40,085		$	40,672

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, 2014		March 31, 2013
Servicing Portfolio (in millions)
Unpaid principal balance (by investor):
Special servicing	$	10,893	$	10,757
Government-sponsored enterprises	210,540		125,221
Non-Agency securitizations	109,331		50,892
Total boarded forward servicing portfolio	330,764		186,870
Acquired Servicing Rights owned - serviced by others	24,714		4,782
Acquired Servicing Rights owned - serviced by predecessor	—		92,590
Total forward servicing portfolio	355,478		284,242
Reverse mortgage servicing	28,927		28,242
Total servicing portfolio unpaid principal balance	$	384,405	$	312,484

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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,	2014 (1)			2013 (2)
($ in millions, except for average loan amount)
Loan count-servicing	1,947,160			1,065,400
Ending unpaid principal balance	$	330,764		$	186,870
Average unpaid principal balance	$	333,336		$	180,403
Average loan amount	$	169,150		$	175,399
Average coupon(3)	5.16		%	5.28		%
Average FICO	683			673
60+ delinquent (% of loans) (4)	11.1		%	12.7		%
Total prepayment speed (12 month constant pre-payment rate)	16.1		%	16.7		%

⁽¹⁾  2014 characteristics and key performance metrics of our servicing portfolio excludes approximately $24.7 billion and approximately 155,589 units of forward residential mortgage loans acquired and currently serviced by others.

⁽²⁾  2013 characteristics and key performance metrics of our servicing portfolio excludes approximately $92.6 billion and approximately 644,610 units of forward residential mortgage loans acquired and serviced by others.

⁽³⁾  The Company's servicing portfolio contains a wide range of coupons ranging from 2.0% to more than 8.0%. The average coupon listed in the table above is the arithmetic mean coupon of boarded loans in the Company's servicing portfolio as of March 31, 2014 and 2013.

⁽⁴⁾  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 following table provides information on the fair value of the Company's owned forward MSR portfolio together with the most significant assumptions utilized in determining such fair value at the periods indicated (in thousands).

	March 31, 2014		December 31, 2013
MSR - Fair Value	$	2,576,550	$	2,488,283
Unpaid principal balance on forward loans serviced for others
Credit Sensitive loans	$	264,176,084	$	266,757,777
Interest Sensitive loans	62,236,994		56,056,362
Total	$	326,413,078	$	322,814,139

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

	March 31, 2014		December 31, 2013
Credit Sensitive MSRs
Discount rate	13.69	%	14.17	%
Total prepayment speeds	20.65	%	20.34	%
Expected weighted-average life	4.64 years		4.63 years
Credit losses	20.22	%	22.87	%
Interest Rate Sensitive MSRs
Discount rate	9.54	%	10.50	%
Total prepayment speeds	10.52	%	8.97	%
Expected weighted average life	7.06 years		7.88 years
Credit losses	8.05	%	9.12	%

Our Credit Sensitive MSRs decreased by approximately $2.6 billion in UPB of mortgage loans serviced at March 31, 2014 due to portfolio run-off, which was slightly offset by new credit sensitive portfolio acquisitions. With respect to the assumptions

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utilized in determining the fair value of the Credit Sensitive MSRs, the assumed discount rate decreased 0.48% to 13.69% at March 31, 2014 from 14.17% at December 31, 2013. The assumed total prepayment speeds increased 0.31% to 20.65% at March 31, 2014 from 20.34% at December 31, 2013, due to a reduction in interest rates at the end of the first quarter of 2014. The assumed expected weighted-average life increased 0.01 years, to 4.64 years at March 31, 2014 from 4.63 years at December 31, 2013, due to the acquisition of several MSR pools during the first quarter of 2014 with lower overall delinquencies relative to our existing credit sensitive MSR pools. These acquisitions also contributed to the decreased in the assumed credit losses which decreased 2.65% to 20.22% at March 31, 2014 from 22.87% at December 31, 2013. See Note 8, Mortgage Servicing Rights, of the notes to the consolidated financial statements for certain additional assumptions.

Our Interest Rate Sensitive MSRs increased by approximately $6.1 billion in UPB of mortgage loans serviced at March 31, 2014. This increase was driven primarily by our expanding origination activity with 34.0% of this increase coming from the refinance of existing loans in our portfolio. To the extent we are able to refinance credit sensitive MSRs to conforming loans, our MSR portfolio shifts from credit to interest rate sensitive. Offsetting this shift were the significant credit sensitive MSRs acquisition in 2014.

With respect to the assumptions utilized in determining the fair value of our Interest Rate Sensitive MSRs, the assumed

discount rate decreased 0.96% to 9.54% at March 31, 2014 from 10.50% at December 31, 2013 to reflect increasing market multiples for mortgage servicing rights. The assumed total prepayment speeds increased 1.55% to 10.52% at March 31, 2014 from 8.97% at December 31, 2013, due to reduced interest rates in the first quarter. The assumed expected weighted-average life decreased 0.82 years, to 7.06 years at March 31, 2014 from 7.88 years at December 31, 2013, due to the lower expected prepayment speeds on newly originated MSRs. The assumed credit losses decreased 1.07% to 8.05% at March 31, 2014 from 9.12% at December 31, 2013, due to slightly lower credit risk identified on certain newly originated MSRs. On a periodic basis, the majority of these MSRs are reviewed by outside valuation experts.

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. Under these agreements, Nationstar sold to New Residential and/or certain Funds managed by Fortress the right to receive a portion of the excess cash flow generated from the Portfolios after receipt of a fixed basic servicing fee per loan. Nationstar accounts for the excess spread financing arrangements as financings as required under ASC 470, Debt.

Nationstar has elected to measure the outstanding financings related to the excess spread financing agreements at fair value, as permitted under ASC 825, Financial Instruments, with all changes in fair value recorded as a charge or credit to servicing fee income in the consolidated statement of operations and comprehensive income (loss). The fair value on excess spread financing is based on the present value of future expected discounted cash flows with the discount rate approximating current market value for similar financial instruments.

The following table provides information on the fair value of the Company's excess spread financing that is utilized to finance a portion of our MSRs for the periods indicated (dollars in thousands).

	March 31, 2014			December 31, 2013
Excess spread financing - fair value	$	978,183		$	986,410
Weighted-average assumptions:
Mortgage prepayment speeds	10.5		%	10.6		%
Average life of mortgage loans	4.7 years			4.7 years
Discount rate	13.5		%	13.9		%

As of March 31, 2014, we were a party to several excess spread financing arrangements with similar, but not identical, contract terms. With respect to the weighted average assumptions utilized in determining the fair value of the Company's excess spread financing, the assumed mortgage prepayment speeds decreased 0.1% to 10.5% at March 31, 2014 from 10.6% at December 31, 2013, primarily due to the lower voluntary prepayment profiles on the excess spread financing arrangements that were entered into during 2014 in comparison with the expected voluntary prepayment profile of the excess spread financing entered into during 2013. The assumed average life of mortgage loans was 4.67 years at March 31, 2014 and at December 31, 2013. The assumed discount rate decreased 0.4% to 13.5% at March 31, 2014 from 13.9% at December 31, 2013, to account for the increase in market multiples in the first quarter of 2014.

The activity in our excess spread financing carried at fair value is as follows for the date indicated (in thousands):

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	For the three months ended March 31. 2014			For the year ended December 31, 2013
Fair value at the beginning of the period	$	986,410		$	288,089
Additions:
New financings	37,859			755,344
Deductions:
Settlements	(42,717		)	(130,356		)
Changes in fair value:
Due to changes in valuation inputs or assumptions used in the valuation model	(5,103		)	148,852
Other changes in fair value	1,734			(75,519		)
Fair value at the end of the period	$	978,183		$	986,410

During 2013, we launched a new servicing acquisition structure. Under this structure, we sold approximately $44.3 billion of UPB of mortgage servicing rights as of December 31, 2013, that are accounted for as a financing. In addition, we sold an additional $28.2 billion of UPB in the three months ended March 31, 2014. The activity in our mortgage servicing financing liability carried at fair value is as follows for the dates indicated (in thousands):

	For the three months ended March 31. 2014			For the year ended December 31, 2013
Fair value at the beginning of the period	$	29,874		$	—
Additions:
New financings	20,651			29,874
Deductions:
Settlements	—			—
Changes in fair value:
Due to changes in valuation inputs or assumptions used in the valuation model	(4,407		)	—
Other changes in fair value	(6,381		)	—
Fair value at the end of the period	$	39,737		$	29,874

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, 2014 and December 31, 2013 being advance financing rates, advance recovery rates and working capital assumptions.

We have also acquired reverse MSRs and funded but unsecuritized advances from third parties. We 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.

We utilize 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 for our reverse MSRs. The most significant assumptions utilized in determining the fair value of the reverse MSRs were weighted average life, which was assumed to be 5.98 years and 6.07 years as of March 31, 2014 and December 31, 2013, respectively, and lifetime constant prepayment rate, for which a 13.45% and 13.23% was utilized as of March 31, 2014 and December 31, 2013, respectively. This class of MSRs is periodically evaluated for impairment. For purposes of measuring impairment, MSRs will be 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. Based on our computations, there was no impairment on this asset as of March 31, 2014 or December 31, 2013.

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The table below provides detail of the characteristics and key performance metrics of our reverse servicing portfolio for the three months ended March 31, 2014 and 2013.

Three months ended March 31,	2014			2013
($ in millions, except for average loan amount)
Loan count	166,041			167,460
Ending unpaid principal balance	$	28,927		$	28,242
Average loan amount	$	174,219		$	168,650
Average coupon	2.97		%	3.03		%
Average borrower age	77			76

Servicing Fee Income

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

	For the three months ended March 31,
	2014			2013
Servicing fee income	$	235,201		$	172,081
Loss mitigation and performance-based incentive fees	13,012			5,806
Modification fees	32,808			24,717
Late fees and other ancillary charges	17,797			11,593
Reverse mortgage fees	13,539			18,693
Other servicing fee related revenues	6,182			7,120
Total servicing fee income before MSR fair value adjustments	318,539			240,010
MSR fair value adjustments	(78,349		)	(9,659		)
Fair value adjustments on MSR financing liability	10,788			—
Fair value adjustments on excess spread financing	3,369			(23,891		)
Total servicing fee income	$	254,347		$	206,460

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

	For the three months ended March 31,
	2014		2013
Primary servicing	$	305,000	$	221,317
Reverse servicing	13,539		18,693
Total servicing fee income before MSR fair value adjustments	$	318,539	$	240,010

	March 31, 2014		March 31, 2013
UPB (in millions)
Owned forward servicing portfolio - unencumbered	$	80,790	$	65,616
Owned forward servicing portfolio - subject to excess spread financing	250,262		175,926
Subserviced forward servicing portfolio	24,426		42,700
Total unpaid principal balance	$	355,478	$	284,242

Servicing Segment for the Three Months Ended March 31, 2014 and 2013

Service Fee Income

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Servicing fee income was $254.3 million for the three months ended March 31, 2014 compared to $206.5 million for the three months ended March 31, 2013, an increase of $47.8 million, or 23.1%, primarily due to the net effect of the following:

.

• Increase of $63.1 million due to higher average UPB on our forward servicing portfolio, which averaged $333.3 billion in the 2014 period compared to $180.4 billion in the comparable 2013 period. The increase in our servicing portfolio was primarily driven by an increase in average UPB for loans serviced for GSEs and other subservicing contracts for third-party investors to $210.9 billion in the 2014 period compared to $117.5 billion in the comparable 2013 period. In addition, we also experienced an increase in average UPB for our private asset-backed securitizations portfolio, which increased to $111.4 billion in the three months ended March 31, 2014 compared to $52.1 billion in the comparable 2013 period.

• Increase of $7.2 million due to increased loss mitigation and performance-based incentive fees earned from a GSE.

The table below provides a summary of our loss mitigation activities for the periods indicated:

	For the three months ended March 31,
	2014		2013
Modifications	$	15,412	$	6,685
Workouts	7,405		6,269
Total Units	$	22,817	$	12,954

• Increase of $8.1 million due to higher modification fees earned from HAMP and non-HAMP modifications.

	For the three months ended March 31,
	2014		2013
HAMP	$	5,574	$	1,902
Non HAMP	9,838		4,783
Total Units	$	15,412	$	6,685

• Increase of $6.2 million from increased collections from late fees and other ancillary charges.

• Decrease of $5.2 million from fees earned from our reverse mortgage portfolio.

• Decrease of $68.6 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 expense 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 include the estimated effects of loan modifications on expected cash flows, as well as market changes in the multiples applied to the servicing asset. 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 other major market participants would also 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. 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

69

believe other major market participants would also 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. See Note 8, Mortgage Servicing Rights, of the notes to the consolidated financial statements for certain additional assumptions.

• Increase of $27.3 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.

• Increase of $10.8 million from the change in fair value of our mortgage servicing rights financing liability. In conjunction with our new servicing acquisition structure, we entered into several sale agreements on our outstanding advances, which we treated as financings, whereby we sold the right to payment on outstanding servicer advances. We also sold the right to receive the basic fee component on the related MSRs in exchange for the Purchaser to remit a portion of the basic fee to Nationstar in exchange for Nationstar continuing to service the mortgage loans. We measure these financings at fair value.

Other Fee Income

Other fee income was $86.8 million for the three months ended March 31, 2014 compared to $39.1 million for the three months ended March 31, 2013, an increase of $47.7 million, or 122.0%, due to an increase in Solutionstar revenues as a result of our Equifax acquisition combined with higher commissions earned on lender placed insurance and higher REO sales commissions.

Expenses and Impairments

Expenses and impairments were $206.0 million for the three months ended March 31, 2014 compared to $147.6 million for the three months ended March 31, 2013, an increase of $58.4 million, or 39.6%, primarily due to the increase of $14.6 million in salaries, wages and benefits expense resulting primarily from an increase in average headcount to 4,099 in the 2014 period from 3,331 in the 2013 period and an increase of $43.7 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, 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,
	2014		2013
Primary servicing	$	172,145	$	128,425
Reverse servicing	17,927		12,707
Adjacent businesses	9,481		2,174
Other Servicing Segment expenses	6,410		4,303
Total expenses and impairments	$	205,963	$	147,609

Other Income (Expense)

Total other expense was $93.4 million for the three months ended March 31, 2014 compared to $57.1 million for the three months ended March 31, 2013, an increase in expense, net of income, of $36.3 million or 63.6%, primarily due to the net effect of the following:

• Interest income was $18.7 million for the three months ended March 31, 2014 compared to $13.4 million for the three months ended March 31, 2013, an increase of $5.3 million, due in part to higher interest earned on our participating interests in reverse mortgages.

• Interest expense was $114.6 million for the three months ended March 31, 2014 compared to $71.3 million for the three months ended March 31, 2013, an increase of $43.3 million, or 60.7%, primarily due to higher average outstanding debt as a result of our $0.9 billion in unsecured senior notes that were issued in 2013. Interest expense from the unsecured senior notes was $35.6 million and $22.7 million, for the three months ended March 31, 2014 and 2013, respectively.

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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.

The following table summarizes our consolidated pre-tax operating results for the periods indicated (in thousands).

	For the three months ended March 31,
	2014			2013
Revenues:
Servicing fee income	$	—		$	—
Other fee income (expense)	14,792			5,896
Total fee income (expense)	14,792			5,896
Gain on mortgage loans held for sale	116,200			179,793
Total revenues	130,992			185,689
Expenses and impairments:
Salaries, wages and benefits	69,985			61,981
General and administrative	34,667			46,739
Occupancy	3,668			3,182
Total expenses and impairments	108,320			111,902
Other income (expense):
Interest income	21,521			10,979
Interest expense	(36,603		)	(16,759		)
Total other income (expense)	(15,082		)	(5,780		)
Income before taxes	$	7,590		$	68,007

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.

	For the three months ended March 31,
Originations Volume (in millions)	2014		2013
Retail	$	3,290.5	$	2,043.1
Wholesale	—		1,102.7
Correspondent	1,458.4		267.2
Total Originations	$	4,748.9	$	3,413.0

Originations Segment for the Three Months Ended March 31, 2014 and 2013

Originations Revenue

Total revenue was $131.0 million for the three months ended March 31, 2014 compared to $185.7 million for the three months ended March 31, 2013, a decrease of $54.7 million, or 29.5%, primarily due to a decrease on gain on mortgage loans held for sale.

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

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	For the three months ended March 31,
	2014			2013
Gain on sale	$	193,728		$	139,130
Provision for repurchases	(7,127		)	(5,803		)
Capitalized servicing rights	58,304			31,268
Fair value mark-to-market adjustments	(154,738		)	(6,934		)
Mark-to-market on derivatives/hedges	26,033			22,132
Total gain on mortgage loans held for sale	$	116,200		$	179,793

Gain on mortgage loans held for sale was $116.2 million for the three months ended March 31, 2014, compared to $179.8 million for the three months ended March 31, 2013, a decrease of $63.6 million, or 35.4%, primarily due to the net effect of the following:

• Increase of $54.6 million from the increase in originations volume which increased to $4.7 billion for the three months ended March 31, 2014 compared to $3.4 billion for the three months ended March 31, 2013.

• Increase of $27.0 million from capitalized MSRs due to the larger volume of originations and subsequent retention of MSRs.

• Increase of $3.9 million from change in unrealized gains/losses on derivative financial instruments. These include IRLCs and forward sales of MBS.

• Decrease of $147.8 million resulting from the change in fair value on newly-originated loans.

• Decrease of $1.3 million from a larger provision for repurchases as a result of the increase in our loan sale volume, partially offset by a lower expected loss rate.

Expenses and Impairments

Expenses and impairments were $108.3 million for the three months ended March 31, 2014 compared to $111.9 million for the three months ended March 31, 2013, a decrease of $3.6 million, or 3.2%, primarily due to the net effect of the following:

• Increase of $8.0 million in salaries, wages and benefits expense due to an increase in average headcount, which averaged 2,464 in 2014 compared to 1,800 in 2013.

• Decrease of $11.6 million in general and administrative and occupancy expense primarily due to sale of our wholesale originations business.

Other Income and Expenses

Total other expense was $15.1 million for the three months ended March 31, 2014 compared to $5.8 million for the three months ended March 31, 2013, an increase in expense, net of income, of $9.3 million primarily due to the net effect of the following:

• Interest income was $21.5 million for the three months ended March 31, 2014 compared to $11.0 million for the three months ended March 31, 2013, an increase of $10.5 million, or 95.5%, 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 $36.6 million for the three months ended March 31, 2014 compared to $16.8 million for the three months ended March 31, 2013, an increase of $19.8 million, or 117.9%, primarily due to an increase in originations volume in 2014 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 $6.4 million additional interest expense on unsecured senior notes.

Legacy Portfolio and Other

Our Legacy Portfolio and Other consist of non-prime and nonconforming residential mortgage loans that we primarily originated from April to July 2007. Revenues and expenses are a result of mortgage loans transferred to securitization trusts

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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,
	2014		2013
Performing – UPB	$	210,090	$	266,854
Nonperforming (90+ Delinquency) - UPB	87,538		81,968
REO - Estimated Fair Value	14,232		15,487
Total Legacy Portfolio and Other – UPB	$	311,860	$	364,309

Legacy Portfolio and Other for the Three Months Ended March 31, 2014 and 2013

Total revenues were $(0.4) million for the three months ended March 31, 2014 as compared to $0.4 million for the three months ended March 31, 2013.

Total expenses and impairments were $6.9 million for the three months ended March 31, 2014 compared to $9.1 million for the three months ended March 31, 2013, an decrease of $2.2 million, or 24.2%. The decrease in expenses and impairments was primarily due to lower losses on loans held for investment and foreclosed real estate during the current period.

Interest expense, net of interest income was $2.0 million for the three months ended March 31, 2014 compared to $0.5 million in interest income for the three months ended March 31, 2013. The increase was a result of higher bank fees incurred on our outstanding bank facilities. For the current quarter ended March 31, 2014, we incurred $2.5 million compared to $0.9 million for the same period in 2013.

In addition, we recorded a gain on interest rate swaps and caps of $0.3 million for the three months ended March 31, 2014, compared to gain of $0.5 million recorded during the comparable 2013 period. In conjunction with the Reorganization, FIF contributed outstanding interest rate swaps in March 2012 to Nationstar. These interest rate swaps 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 MRAs. Restricted cash was $471.6 million at March 31, 2014, a decrease of $121.1 million from December 31, 2013, primarily a result of our sale and transfer of servicer advances to a new servicing acquisition structure entered into in December 2013. Under this new structure, we sold the outstanding equity interests in certain servicer advance facilities. As a result of this transaction the outstanding custodial accounts have been transferred to the Purchaser.

Accounts receivable consists primarily of advances made to 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 decreased $1.5 billion to $4.1 billion at March 31, 2014, primarily due to $1.6 billion in servicer advances sold during the first quarter 2014 to New Residential.

Mortgage loans held for sale are primarily 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 $1.7 billion at March 31, 2014, a decrease of $0.9 billion from December 31, 2013, primarily due to $6.4 billion of loan sales and payments during the 2014 period partially offset by $5.4 billion in loans originated or purchased.

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Mortgage loans held for investment, principally subject to nonrecourse debt - Legacy Assets consist of nonconforming or non-prime mortgage loans securitized which serve as collateral for the nonrecourse debt. Mortgage loans held for investment, subject to nonrecourse debt - Legacy Assets was $204.4 million at March 31, 2014, a decrease of $6.7 million from December 31, 2013. This decrease was primarily a result of increased liquidation and payoffs on the outstanding pool of mortgage 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 $1.6 billion at March 31, 2014, an increase of $0.2 billion from December 31, 2013, primarily due to additional amounts advanced under reverse mortgage interests.

MSRs 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 and certain reverse residential mortgage loans. MSRs were $2.6 billion at March 31, 2014, an increase of $0.1 billion over December 31, 2013, primarily a result of the purchase of servicing portfolios for $108.3 million combined with capitalization of $58.3 million newly created MSRs, offset partially by a $78.3 million decrease in the fair value of our MSRs.

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 $119.3 million at March 31, 2014, an increase of $0.1 million from December 31, 2013, as we invested in information technology systems to support volume growth in both our Servicing and Originations Segments.

Derivative financial instruments include IRLCs, forward sales of MBS, forward sales commitments, LPCs and interest rate swaps, all of which are recorded at fair value. Derivative financial instruments decreased $28.1 million from December 31, 2013 to $95.8 million at March 31, 2014. The change was primarily driven by an decrease in the value of outstanding Forward MBS trades which decreased $25.5 million from December 31, 2013.

Other assets include collateral deposits on derivative instruments, deferred financing costs, REO, receivables from affiliates, prepaid expenses and loans subject to repurchase rights from Ginnie Mae. Other assets decreased $33.3 million from December 31, 2013 to $327.1 million. The change is primarily due to a $20.9 million decrease in outstanding collateral deposits on derivative instruments, combined with a decrease in deferred financing costs of $7.0 million, a $3.6 million decrease in receivables from affiliates, and a $5.8 million decrease in prepaid expenses.

Liabilities and Stockholders' Equity

At March 31, 2014, total liabilities were $10.6 billion, a $2.4 billion decrease from December 31, 2013. The decrease was primarily due to a $2.4 billion decrease in notes payable as we sold outstanding advances and transferred debt obligations to a third party, a decrease in excess spread financing of $8.2 million, a decrease in payables and accrued liabilities of $119.1 million, partially offset by an increase in participating interest financing of $98.8 million.

Included in our payables and accrued liabilities caption on our balance sheet is our reserve for repurchases and indemnifications of $44.5 million and $40.7 million at March 31, 2014 and December 31, 2013, 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.

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

	Three months ended March 31, 2014			Year Ended December 31, 2013
Repurchase reserves, beginning of period	$	40,695		$	18,511
Additions	7,127			33,121
Charge-offs	(3,344		)	(10,937		)
Repurchase reserves, end of period	$	44,478		$	40,695

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, 2014					Year Ended December 31, 2013
	UPB			Count		UPB			Count
Beginning balance	$	43.0		176		$	14.0		79
Repurchases & indemnifications	(1.8		)	(13	)	(8.9		)	(55	)
Claims initiated	18.7			84		93.4			439
Rescinded	(29.1		)	(127	)	(55.5		)	(287	)
Ending Balance	$	30.8		120		$	43.0		176

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

	Three months ended March 31,			Year Ended December 31,
	2014			2013			2012			2011			2010			Total
	$		Count	$		Count	$		Count	$		Count	$		Count	$		Count
Loan Sales	$	5.3	29,452	$	23.0	109,963	$	6.9	31,261	$	3.3	16,629	$	2.6	13,090	$	41.1	200,395

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 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, 2014, total Nationstar Inc. stockholders' equity was $1.0 billion, a $22.3 million increase from December 31, 2013, which is primarily attributable to net income of $24.0 million in the 2014 period, $2.8 million in share-based compensation, $2.2 million in excess tax benefit from share based compensation and offset by $4.8 million as a result of the vesting of share-based compensation.

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

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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 decreased to $404.1 million as of March 31, 2014 from $441.9 million as of December 31, 2013, primarily due to cash inflows from operating and investing activities, offset by cash outflows in our financing activities.

We grew our servicing portfolio to $384.4 billion in UPB as of March 31, 2014 from $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 primarily on loans that are eligible to be sold to GSEs. Since 2008, substantially all originated loans have either been sold or are held for sale.

As part of the normal course of our business, we borrow money periodically to fund servicing advances and loan originations,

as these activities require liquidity substantially in excess of that generated by our operations. 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.

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. 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, 2014, our maximum unfunded advance obligation related to these reverse mortgage loans was approximately $4.2 billion.

From 2010 through 2013, we have completed offerings of $2.4 billion of unsecured senior notes, with maturity dates ranging

from April 2015 to June 2022. We pay interest semi-annually to the holders of these notes at interest rates ranging from

6.500% to 10.875%.

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) servicing fees and ancillary fees; (ii) payments received from sale or

securitization of loans; (iii) payments received from mortgage loans held for sale; (iv) payments from the liquidation or

securitization of our outstanding participating interests in reverse mortgage loans; (v) lines of credit, other secured borrowings

and the unsecured senior notes; and (vi) payments received in connection with the sale of advance receivables and excess

spread.

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.

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Pursuant to the terms of our agreements with New Residential, for certain pools of loans, New Residential now has the obligation to fund future advances on the related loans.

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 generally recovered upon weekly or monthly reimbursement or from sale in the market. In addition we are subject to servicing guidelines of GSEs that require minimum net worth requirements.

We intend to continue to seek opportunities to acquire loan servicing portfolios and/or businesses that engage in loan servicing

and/or loan originations. Any future acquisitions could require substantial additional capital in excess of cash from operations.

We would expect to finance the capital required for acquisitions through a combination of additional issuances of equity,

corporate indebtedness, asset backed acquisition financing and/or cash from operations.

Operating Activities

Our operating activities provided $617.3 million of cash flow for the three months ended March 31, 2014 and used $360.3 million of cash flow for the same period in the prior year. The increase in cash provided by operating activities of $977.6 million during the 2014 period was primarily due to the significant increase in payments and proceeds on our mortgage loans held for sale offset by an increase in originations volume. The increase was primarily due to the net effect of the following:

• This increase in cash outflows was primarily due to an increase of $2,666.4 million in our cash inflows from proceeds received from the sale of our residential mortgage loans and payments received on mortgage loans. We received $6,361.3 million in cash proceeds from loan sales and principal collections for the three months ended March 31, 2014, compared to $3,694.9 million for the comparable 2013 period. We originated and purchased $5,402.9 million in residential mortgage loans during the three month period ended March 31, 2014, compared to $3,781.2 million in mortgage originations and purchases for the comparable 2013 period.

• Increase of $123.4 million in cash outflows from working capital which used $318.9 million for the three months ended March 31, 2014 compared to $195.5 million in cash outflow for the comparable 2013 period.

Investing Activities

Our investing activities provided $104.4 million and used $339.8 million of cash flow for the three months ended March 31, 2014 and 2013, respectively. The $444.2 million increase in cash flows provided by investing activities from the 2013 period to the 2014 period was primarily a result of our sale of servicer advances during the 2014 period. We received cash proceeds of $182.9 million on the sale of servicer advances in 2014, with no corresponding cash receipts during the 2013 period.

Financing Activities

Our financing activities used $759.5 million and provided $767.5 million of cash flow during the three months ended March 31, 2014 and 2013, respectively. The $1,527.0 million decrease in cash flows from our financing activities was primarily the result the decrease in our notes payable balance due to the sale of advance receivables. In addition, we raised $599.3 million in cash proceeds during the three months ended March 31, 2013, with no corresponding cash receipts in the 2014 period.

Contractual Obligations

There were no material changes to our outstanding contractual obligations as of March 31, 2014, from amounts previously disclosed in our Annual Report on Form 10-K filed on February 27, 2014.

Variable Interest Entities and Off Balance Sheet Arrangements

See Note 4, 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, which is herein incorporated by reference.

Derivatives

See Note 11, Derivative Financial Instruments, of the notes to the consolidated financial statements for a summary of Nationstar's derivative transactions, which is herein incorporated by reference.

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Item 3. Quantitative and Qualitative Disclosures about Market Risk

Refer to the discussion of market risks included in Part II, Item 7A of our Form 10-K filed February 27, 2014, which is herein incorporated by reference. There has been no material change in the types of market risks faced by us since December 31, 2013.

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, market discount rates and cost to service. 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 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 use 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. We do not believe that on the whole that our estimated net changes to the fair value of our assets and liabilities at March 31, 2014 would be materially different than previously presented.

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, 2014.

Based on this evaluation, our Chief Executive Officer and Chief Financial Officer concluded that, as of March 31, 2014, 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, 2014 that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

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 February 27, 2014. 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 February 27, 2014.

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, 2014 - January 31, 2014	—	—	—	—
February 1, 2014 - February 28, 2014	—	—	—	—
March 1, 2014 - March 31, 2014	149,430	30.10	—	—
Total	149,430	30.10	—	—

¹ The 149,430 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. 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.

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Item 6.Exhibits, Financial Statement Schedules

		Incorporated by Reference
Exhibit Number	Description	Form	File No.	Exhibit	Filing Date	Filed or Furnished Herewith
4.1	Amendment No. 1, dated October 9, 2013 to the Base Indenture and to the Series 2013-VF1 Indenture Supplement, among Nationstar Servicer Advance Receivables Trust 2013-BofA, the issuer, Wells Fargo Bank, N.A., as indenture trustee, Nationstar Mortgage LLC, as administrator, and Bank of America, N.A., as administrative agent					X
4.2	Amendment No. 2 , dated February 28, 2014 to the Base Indenture and to the Series 2013-VF1 Indenture Supplement, among Nationstar Servicer Advance Receivables Trust 2013-BofA, the issuer, Wells Fargo Bank, N.A., as indenture trustee, Nationstar Mortgage LLC, as administrator, and Bank of America, N.A., as administrative agent					X
4.3	Amendment No. 3 to Series 2013-VF1 Indenture Supplement, dated April 18, 2014 among Nationstar Servicer Advance Receivables Trust 2013-BofA, the issuer, Wells Fargo Bank, N.A., as indenture trustee, Nationstar Mortgage LLC, as administrator, and Bank of America, N.A., as administrative agent					X
4.4	Amendment No. 1 to the Fourth Amended and Restated Indenture, dated April 22, 2014, among Nationstar Agency Advance Funding Trust, the issuer, The Bank of New York Mellon, as indenture trustee, Nationstar Mortgage LLC, as administrator and Barclays Bank PLC, as administrative agent					X
10.1	Amendment Number Six, dated November 25, 2013 to the Amended and Restated Master Repurchase Agreement among Barclays Bank PLC, Sutton Funding LLC and Nationstar Mortgage LLC					X
10.2	Amendment Number Seven, dated January 14, 2014 to the Amended and Restated Master Repurchase Agreement among Barclays Bank PLC, Sutton Funding LLC and Nationstar Mortgage LLC					X
10.3**	Nationstar Mortgage LLC Annual Incentive Compensation Plan, amended and restated as of February 24, 2014					X
31.1	Certification by Chief Executive Officer Pursuant to Rules 13a-14(a) and 15d-14(a) as adopted pursuant to 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) as adopted pursuant to 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

80

		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

** Management contract, compensatory plan or arrangement.

81

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 9, 2014	/s/ Jay Bray
Date	Jay Bray Chief Executive Officer (Principal Executive Officer)
May 9, 2014	/s/ David C. Hisey
Date	David C. Hisey Chief Financial Officer (Principal Accounting and Financial Officer)

82

Exhibit Index

		Incorporated by Reference
Exhibit Number	Description	Form	File No.	Exhibit	Filing Date	Filed or Furnished Herewith
4.1	Amendment No. 1, dated October 9, 2013 to the Base Indenture and to the Series 2013-VF1 Indenture Supplement, among Nationstar Servicer Advance Receivables Trust 2013-BofA, the issuer, Wells Fargo Bank, N.A., as indenture trustee, Nationstar Mortgage LLC, as administrator, and Bank of America, N.A., as administrative agent					X
4.2	Amendment No. 2 , dated February 28, 2014 to the Base Indenture and to the Series 2013-VF1 Indenture Supplement, among Nationstar Servicer Advance Receivables Trust 2013-BofA, the issuer, Wells Fargo Bank, N.A., as indenture trustee, Nationstar Mortgage LLC, as administrator, and Bank of America, N.A., as administrative agent					X
4.3	Amendment No. 3 to Series 2013-VF1 Indenture Supplement, dated April 18, 2014 among Nationstar Servicer Advance Receivables Trust 2013-BofA, the issuer, Wells Fargo Bank, N.A., as indenture trustee, Nationstar Mortgage LLC, as administrator, and Bank of America, N.A., as administrative agent					X
4.4	Amendment No. 1 to the Fourth Amended and Restated Indenture, dated April 22, 2014, among Nationstar Agency Advance Funding Trust, the issuer, The Bank of New York Mellon, as indenture trustee, Nationstar Mortgage LLC, as administrator and Barclays Bank PLC, as administrative agent					X
10.1	Amendment Number Six, dated November 25, 2013 to the Amended and Restated Master Repurchase Agreement among Barclays Bank PLC, Sutton Funding LLC and Nationstar Mortgage LLC					X
10.2	Amendment Number Seven, dated January 14, 2014 to the Amended and Restated Master Repurchase Agreement among Barclays Bank PLC, Sutton Funding LLC and Nationstar Mortgage LLC					X
10.3**	Nationstar Mortgage LLC Annual Incentive Compensation Plan, amended and restated as of February 24, 2014					X
31.1	Certification by Chief Executive Officer Pursuant to Rules 13a-14(a) and 15d-14(a) as adopted pursuant to 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) as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002					X

83

		Incorporated by Reference
Exhibit Number	Description	Form	File No.	Exhibit	Filing Date	Filed or Furnished Herewith
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
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

** Management contract, compensatory plan or arrangement.

84

EX-4.1

AMENDMENT NO. 1 TO BASE INDENTURE

AND

AMENDMENT NO. 1 TO SERIES 2013-VF1 INDENTURE SUPPLEMENT

Amendment No. 1 to the Base Indenture and Amendment No. 1 to the Indenture Supplement (this “Amendment”), dated as of October 9, 2013, among NATIONSTAR SERVICER ADVANCE RECEIVABLES TRUST 2013-BOFA, a statutory trust organized under the laws of the State of Delaware (the “Issuer”), WELLS FARGO BANK, N.A., a national banking association, as Indenture Trustee, Calculation Agent, Paying Agent and Securities Intermediary (the “IndentureTrustee”), NATIONSTAR MORTGAGE LLC, a limited liability company organized in the State of Delaware (“Nationstar”), as Administrator on behalf of the Issuer (in such capacity, the “Administrator”) and as Servicer under the Designated Servicing Agreements (in such capacity, the “Servicer”), and BANK OF AMERICA, N.A., as Administrative Agent (in such capacity, the “Administrative Agent”), as Committed Purchaser (in such capacity, the “Committed Purchaser”) and as Derivative Counterparty (in such capacity, the “Derivative Counterparty”). Capitalized terms used and not otherwise defined herein shall have the respective meanings given them in the Existing Base Indenture.

RECITALS

WHEREAS, the Issuer, Indenture Trustee, Servicer, Administrator and Administrative Agent are parties to (i) that certain Indenture, dated as of July 1, 2013 (the “Existing Base Indenture,” as amended by this Amendment, the “Base Indenture”) and (ii) that certain Indenture Supplement, dated as of July 1, 2013 (the “Existing Indenture Supplement,” as amended by this Amendment, the “Indenture Supplement”).

WHEREAS, the Issuer, Indenture Trustee, Servicer, Administrator, Administrative Agent, Committed Purchaser and Derivative Counterparty have agreed, subject to the terms and conditions of this Amendment, that the Existing Base Indenture be amended to reflect certain agreed upon revisions to the terms of the Existing Base Indenture.

WHEREAS, the Issuer, Indenture Trustee, Servicer, Administrator, Administrative Agent, Committed Purchaser and Derivative Counterparty have agreed, subject to the terms and conditions of this Amendment, that the Existing Indenture Supplement be amended to reflect certain agreed upon revisions to the terms of the Existing Indenture Supplement.

WHEREAS, pursuant to Section 12.2 of the Existing Base Indenture, the parties thereto may amend the Existing Base Indenture, with prior notice to each Note Rating Agency, with the consent of any applicable Derivative Counterparty and the Series Required Noteholders and upon delivery of an Issuer Tax Opinion, for the purpose of adding any provisions to the Existing Base Indenture.

WHEREAS, pursuant to Section 12.3 of the Existing Base Indenture, in executing or accepting the additional trusts created by an amendment of the Existing Base Indenture permitted by Article XII of the Existing Base Indenture or the modifications thereby the trusts created by the Existing Base Indenture, the Indenture Trustee will be entitled to receive, and (subject to Section 11.1 of the Existing Base Indenture) will be fully protected in relying upon, an Opinion of Counsel stating that the execution of such amendment is authorized and permitted by the Indenture and that all conditions precedent thereto have been satisfied.

WHEREAS, pursuant to Section 13(b) of the Existing Indenture Supplement, the parties thereto may amend or revise any term or provision of the Existing Indenture Supplement with the consent of 100% of the Series 2013-VF1 Variable Funding Notes and the Derivative Counterparty.

WHEREAS, as of the date hereof, there are no Note Rating Agencies.

WHEREAS, as of the date hereof, the Derivative Counterparty is the sole “Derivative Counterparty” for purpose of the Indenture.

WHEREAS, the Committed Purchaser is the sole holder of the Notes issued under the Existing Base Indenture.

WHEREAS, the Series 2013-VF1 Notes are the only outstanding Notes issued pursuant to the Existing Base Indenture.

NOW, THEREFORE, the Issuer, Indenture Trustee, Servicer, Administrator, Administrative Agent, Committed Purchaser and Derivative Counterparty hereby agree, 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, that the Existing Base Indenture and the Existing Indenture Supplement are hereby amended as follows:

SECTION 1.Amendments to Existing Base Indenture. Effective as of the Amendment Effective Date, the Existing Base Indenture is hereby amended as follows:

1.Section 1.1 of the Existing Base Indenture is hereby amended by adding the following

new definitions thereto in correct alphabetical order:

Exempted Receivable: Any Non-FIFO Receivable or Non-SAF Receivable; provided, that after March 31, 2014, such Non-FIFO Receivable or Non-SAF Receivable, as applicable, shall no longer be an Exempted Receivable to the extent that the related Designated Servicing Agreement has not been amended previously such that the related Receivables are no longer Non-FIFO Receivables or Non-SAF Receivables, as applicable.

Non-FIFO Receivable: A Receivable attributable to a Designated Servicing Agreement that does not include an express provision to the effect that Advances are to be reimbursed on a “first-in first-out,” or “FIFO” basis.

Non-SAF Receivable: A Receivable attributable to a Designated Servicing Agreement that does not include an express provision permitting the Servicer to assign its rights to be reimbursed for Advances.

2.Section 1.1 of the Existing Base Indenture is hereby amended by amending the

definition of “Facility Eligible Servicing Agreement” as follows (modified text bolded

and underlined for review purposes):

(a)deleting clause (ii)(C) of the definition of “Facility Eligible Servicing

Agreement” in its entirety and replacing it as follows:

(C)except with respect to a Designated Servicing Agreement

related to an Exempted Receivable, under such agreement, all

Advances as to a Mortgage Loan are reimbursed on a “first-in, first-

out” or “FIFO” basis, such that the Advances of a particular type that

were disbursed first in time will be reimbursed prior to Advances of

the same type with respect to that Mortgage Loan that were disbursed

later in time and if it is a Whole Loan Servicing Agreement, provides

that all Advances with respect to any Mortgage Loan must be

reimbursed in full at the time the servicing of such Mortgage Loan is

transferred out of such Whole Loan Servicing Agreement;

(b)deleting clause (v) of the definition of “Facility Eligible Servicing

Agreement” in its entirety and replacing it as follows:

(v)except with respect to a Designated Servicing Agreement related to an Exempted Receivable, the Designated Servicing Agreement includes an express provision for the assignment by the Servicer of its rights to be reimbursed for Advances;

1.3    Article XII of the Existing Base Indenture is hereby amended by adding a new Section 12.6 at the end thereof as follows:

Section 12.6.Consent of Derivative Counterparty.

Notwithstanding any provision to the contrary herein, the consent of the Derivative Counterparty shall not be required to amend this Indenture unless such amendment shall adversely affect in any material respect the rights of the Derivative Counterparty.

SECTION 2.Amendments to Existing Indenture Supplement. Effective as of the Amendment Effective Date (unless otherwise specified below), the Existing Indenture Supplement is hereby amended as follows:

2.1    Section 2 of the Existing Indenture Supplement is hereby amended by inserting the following new terms thereto:

“Unsecured Senior Notes” means, as of any date of determination, an amount equal to the “unsecured senior notes” as reported on the then current unaudited balance sheet of Nationstar Mortgage Holdings Inc. and its consolidated Subsidiaries.

2.2    Section 2 of the Existing Indenture Supplement is hereby amended by deleting the definition of “Advance Rates” and replacing it as follows (modified text bolded and underlined for review purposes):

“Advance Rates” means, on any date of determination with respect to each Receivable related to any Class of Series 2013‑VF1 Notes, the percentage amount based on the Advance Type of such Receivable as set forth in the table below, subject to amendment

by mutual agreement of the Administrative Agent and the Administrator; provided, that

(i)in the event that the Servicer’s rating (however indicated by S&P, Moody’s or Fitch) assigned by S&P, Moody’s or Fitch is either withdrawn by any of S&P, Moody’s or Fitch, as applicable, or downgraded by S&P, Moody’s or Fitch below any of the following categories: (i) “Average” with respect to the applicable party’s rating as a Residential Subprime Loan Servicer by S&P, (ii) “SQ3” with respect to the applicable party’s rating as a Primary Servicer of Subprime Residential Mortgages by Moody’s, or (iii) “RPS3” with respect to the applicable party’s rating as a Residential Subprime Loan Servicer by Fitch, the Advance Rates applicable to the Receivables related to such Class of Notes shall be equal to the Advance Rates set forth in the table below prior to such ratings reduction minus 5.00% for so long as such subprime servicer rating is below any of the levels specified above;

(ii) (x) the Advance Rate for any Receivable related to any Class of Notes shall be zero if such Receivable is not a Facility Eligible Receivable; (y) the Advance Rate for any Non-FIFO Receivable related to any Class of Notes shall be zero if such Receivable is not an Exempted Receivable; and (z) the Advance Rate for any Non-SAF Receivable related to any Class of Notes shall be zero if such Receivable is not an Exempted Receivable;

(iii)on and after April 18, 2014 but prior to May 18, 2014, (x) if the VFN balance is less than 60% of the Initial VFN Maximum Note Balance, the Advance Rates applicable to the Receivables related to such Class of Notes shall be equal to the Advance Rates set forth in the table below minus 1.00%, or (y) if the VFN balance is 60% or more of the Initial VFN Maximum Note Balance, the Advance Rates applicable to the Receivables related to such Class of Notes shall be equal to the Advance Rates set forth in the table below minus 3.00%;

(iv)on and after May 18, 2014 but prior to June 18, 2014, (x) if the VFN balance is less than 50% of the Initial VFN Maximum Note Balance, the Advance Rates applicable to the Receivables related to such Class of Notes shall be equal to the Advance Rates set forth in the table below minus 2.00%, or (y) if the VFN balance is 50% or more of the Initial VFN Maximum Note Balance, the Advance Rates applicable to the Receivables related to such Class of Notes shall be equal to the Advance Rates set forth in the table below minus 6.00%; and

(v)on and after June 18, 2014, (x) if the VFN balance is less than 40% of the Initial VFN Maximum Note Balance, the Advance Rates applicable to the Receivables related to such Class of Notes shall be equal to the Advance Rates set forth in the table below minus 3.00%, or (y) if the VFN balance is 40% or more of the Initial VFN Maximum Note Balance, the Advance Rates applicable to the Receivables related to such Class of Notes shall be equal to the Advance Rates set forth in the table below minus 9.00%.

Class A-VF1
Advance Type / Type of Advance	General	Exempted
Non-Judicial P&I Advances	90%	85%
Judicial P&I Advances	90%	85%
Non-Judicial Deferred Servicing Fees	85%	80%
Judicial Deferred Servicing Fees	85%	80%
Non-Judicial Escrow Advances	90%	85%
Judicial Escrow Advances	90%	85%
Non-Judicial Corporate Advances	90%	85%
Judicial Corporate Advances	90%	85%

2.3    Section 2 of the Existing Indenture Supplement is hereby amended by deleting the table in the definition of “Advance Ratio” and replacing it as follows (modified text bolded and underlined for review purposes):

“Advance Ratio” means, as of any date of determination with respect to any Designated

Servicing Agreement, the ratio (expressed as a percentage), calculated as of the last

day of the calendar month immediately preceding the calendar month in which such

date occurs, of (i) the Stressed Nonrecoverable Advance Amount of all Mortgage

Loans (other than any Mortgage Loans that generate Receivables that are Loan-Level

Receivables, any Mortgage Loans that generate Receivables that are Second Lien

Receivables, any Mortgage Loans that generate Receivables that are Non-FIFO

Receivables, any Mortgage Loans that generate Receivables that are Non-SAF

Receivables or any Mortgage Loans that are attributable to Small Threshold Servicing

Agreements) serviced pursuant to the related Designated Servicing Agreement on such

date over (ii) the aggregate monthly scheduled principal and interest payments for the

calendar month immediately preceding the calendar month in which such date occurs

with respect to all non-delinquent Mortgage Loans serviced pursuant to the related

Designated Servicing Agreement.

    2.4    Section 2 of the Existing Indenture Supplement is hereby amended by deleting the definition of “ Mortgage Loan-Level Market Value Ratio” and replacing it as follows (modified text bolded and underlined for review purposes):

“Mortgage Loan-Level Market Value Ratio” means, as of any date of determination with respect to a Mortgage Loan or REO Property that is secured by a first lien on the related Mortgaged Property or REO Property, the ratio (expressed as a percentage) of (x) (i) with respect to Section 5(vii)(a) hereof, the aggregate Receivable Balance of all Loan-Level Receivables outstanding with respect to such Mortgage Loan or REO Property on such date or (ii) with respect to Section 5(vii)(b) hereof, the aggregate Receivable Balance of all Receivables outstanding with respect to such Mortgage Loan or REO Property on such date over (y) the Market Value of such Mortgaged Property or REO Property on such date.

2.5    Effective as of July 1, 2013, Section 2 of the Existing Indenture Supplement is hereby amended by deleting the definition of “Financial Covenants” in its entirety and replacing it as follows (modified text bolded and underlined for review purposes):

“Financial Covenants” means the tests set forth below:

(i) Minimum Tangible Net Worth: The Servicer shall maintain Tangible Net Worth of not less than the sum of (i) $350,000,000 plus (ii) (A) the product of (x) two (2) and (y) the aggregate amount of proceeds received by Servicer in connection with an issuance of equity interests in Servicer from and after January 1, 2013 divided by (B) three (3) as of the last day of each calendar quarter.

(ii) Minimum Liquidity: the Servicer shall maintain Liquidity of at least $45,000,000 as of the last Business Day of each calendar month.

(iii) The Servicer’s Total Liabilities to Tangible Net Worth shall be: (i) during the months of July, August and September, 2013, less than or equal 11:1, and (ii) thereafter,less than or equal to 9:1 as of the last day of any calendar quarter.

(iv) Operating Income: Servicer shall show positive pre-tax Operating Income, on a rolling six-month basis.

(v)The maximum ratio of Unsecured Senior Notes to Tangible Net Worth during the months of July, August and September, 2013, shall be less than or equal to 3:1.

2.6    Section 5 of the Existing Indenture Supplement is hereby amended by (i) deleting the term “or” at the end of clause (ix), (ii) deleting “.” at the end of clause (x) and adding the term “or” at the end thereof; and (iii) adding a new clause (xi) at the end thereof as follows:

(xi) is an Exempted Receivable, to the extent that the related Receivable Balance of such Exempted Receivable, when added to the aggregate Receivable Balances of Exempted Receivable already outstanding with respect to all Mortgage Loans or REO Properties, causes the aggregate Receivable Balances of all Exempted Receivable to exceed (i) from and including October 9, 2013] through December 31, 2013, 20.0% of the aggregate Receivables Balance of all Facility Eligible Receivables, (ii) from and including December 31, 2013 through March 31, 2014, 10.0% of the aggregate Receivables Balance of all Facility Eligible Receivables, and (iii) on and after March 31, 2014, 0% of the aggregate Receivables Balance of all Facility Eligible Receivables.

2.7    Section 13(a) of the Existing Indenture Supplement is hereby amended by deleting the clause “the Derivative Counterparty,” beginning in the fourth line thereof.

2.8    Section 13 of the Existing Indenture Supplement is hereby amended by deleting clause (c) in its entirety.

SECTION 3.Noteholder Consent. The Committed Purchaser hereby consents to this Amendment.

SECTION 4.Derivative Counterparty Consent. The Derivative Counterparty hereby consents to this Amendment.

SECTION 5.No Note Rating Agencies. As of the date hereof, there are no Note Rating Agencies.

SECTION 6.Conditions to Effectiveness of the Amendment. This Amendment shall become effective on the date hereof (the “Amendment Effective Date”) subject to the satisfaction of

the following conditions precedent:

6.1    the execution and delivery of this Amendment by all parties hereto; and

6.2    the delivery of an Issuer Tax Opinion.

SECTION 7.Representations and Warranties.  The Issuer hereby represents and warrants to the Indenture Trustee, the Administrative Agent, the Committed Purchaser and the Derivative Counterparty that as of the date hereof, (i) there are no Note Rating Agencies, (ii) the Issuer is in compliance with all the terms and provisions set forth in the Base Indenture and the Indenture Supplement on its part to be observed or performed and remains bound by the terms thereof, and (iii) after giving effect to the terms of this Amendment, no Event of Default has occurred or is continuing, and hereby confirms and reaffirms the representations and warranties contained in Section 9.1 of the Base Indenture.

SECTION 8.Limited Effect. Except as expressly amended and modified by this Amendment, the Existing Indenture shall continue to be, and shall remain, in full force and effect in accordance with its terms and the execution of this Amendment.

SECTION 9.Severability. Each provision and agreement herein shall be treated as separate and independent from any other provision or agreement herein and shall be enforceable notwithstanding the unenforceability of any such other provision or agreement.

SECTION 10.Counterparts. This Amendment may be executed by each of the parties hereto on any number of separate counterparts, each of which shall be an original and all of which taken together shall constitute one and the same instrument.

SECTION 11.GOVERNING LAW. THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT REFERENCE TO THE CHOICE OF LAW PROVISIONS THEREOF.

SECTION 12.Certain Waivers. The Committed Purchaser hereby waives and instructs the Indenture Trustee to waive each requirement for the delivery of opinions and certificates in connection with this Amendment pursuant to Sections 1.3, 1.4 and 12.3 of the Existing Base Indenture.

[SIGNATURE PAGES FOLLOW]

IN WITNESS WHEREOF, the undersigned have caused this Amendment to be duly executed as of the date first above written.

Nationstar Servicer Advance Receivables Trust 2013-BofA, as Issuer

By: Nationstar Mortgage LLC, as its Administrator

By: /s/ Amar Patel

Name: Amar Patel

Title: EVP

Nationstar Mortgage LLC, as Administrator and Servicer

By: /s/ Amar Patel

Name: Amar Patel

Title: EVP

Signature Page to Amendment No. 1 to Base Indenture and Amendment No. to Series 2013-VF1 Indenture Supplement

Wells Fargo Bank, N.A., as Indenture Trustee, Calculation Agent, Paying Agent and Securities Intermediary and not in its individual capacity

By: /s/ Mark DeFabio

Name: Mark DeFabio

Title: Vice President

Signature Page to Amendment No. 1 to Base Indenture and Amendment No. to Series 2013-VF1 Indenture Supplement

BANK OF AMERICA, N.A., as Administrative Agent and Committed Purchaser

By: /s/ Jing Isabel Liu

Name: Jing Isabel Liu

Title: Vice President

BANK OF AMERICA, N.A., as Derivative Counterparty

By: /s/ James C. Hsu

Name: James C. Hsu

Title: Managing Director

Signature Page to Amendment No. 1 to Base Indenture and Amendment No. to Series 2013-VF1 Indenture Supplement

EX-4.2

Exhibit 4.2

EXECUTION COPY

AMENDMENT NO. 2 TO BASE INDENTURE

AND

AMENDMENT NO. 2 TO SERIES 2013-VF1 INDENTURE SUPPLEMENT

Amendment No. 2 to the Existing Base Indenture (defined below) and Amendment No. 2 to the Existing Indenture Supplement (defined below) (this “Amendment”), dated as of February 28, 2014, among NATIONSTAR SERVICER ADVANCE RECEIVABLES TRUST 2013-BOFA, a statutory trust organized under the laws of the State of Delaware (the “Issuer”), WELLS FARGO BANK, N.A. (“Wells Fargo”), a national banking association, as indenture trustee, (in such capacity, the “Indenture Trustee”), NATIONSTAR MORTGAGE LLC, a limited liability company organized in the State of Delaware (“Nationstar”), as administrator on behalf of the Issuer (in such capacity, the “Administrator”) and as servicer under the Designated Servicing Agreements (in such capacity, the “Servicer”), and BANK OF AMERICA, N.A., as administrative agent (in such capacity, the “Administrative Agent”) and as committed purchaser (in such capacity, the “Committed Purchaser”).

RECITALS

WHEREAS, the Issuer, Indenture Trustee, Wells Fargo, as calculation agent (in such capacity, the “Calculation Agent”), as paying agent (in such capacity, the “Paying Agent”) and as securities intermediary (in such capacity, the “Securities Intermediary”), Servicer, Administrator and Administrative Agent are parties to that certain Indenture, dated as of July 1, 2013 (as amended by Amendment No. 1, dated as of October 9, 2013, the “Existing Base Indenture”), the provisions of which are incorporated, as modified by that certain Indenture Supplement, dated as of July 1, 2013 (as amended by Amendment No. 1, dated as of October 9, 2013, the “Existing Indenture Supplement,” and together with the Base Indenture, the “Existing Indenture”), among the Issuer, Indenture Trustee, Calculation Agent, Paying Agent, Securities Intermediary, Servicer, Administrator and the Administrative Agent. Capitalized terms used and not otherwise defined herein shall have the respective meanings given them in the Existing Indenture.

WHEREAS, the Issuer, Indenture Trustee, Servicer, Administrator, Administrative Agent and Committed Purchaser have agreed, subject to the terms and conditions of this Amendment, that the Existing Indenture Supplement and the Existing Base Indenture be amended to reflect certain agreed upon revisions to the terms of the Existing Indenture Supplement and the Existing Base Indenture.

WHEREAS, pursuant to Section 12.2 of the Existing Base Indenture, the parties hereto may amend the Existing Base Indenture, with prior notice to each Note Rating Agency, with the consent of any applicable Derivative Counterparty and the Series Required Noteholders of each Series materially and adversely affected by such amendment and upon delivery of an Issuer Tax Opinion, for the purpose of adding any provisions to the Existing Base Indenture.

WHEREAS, as of the date hereof, there are no Note Rating Agencies.

WHEREAS, as of the date hereof, the Derivative Counterparty is the sole “Derivative Counterparty” for purposes of the Indenture and has consented to this Amendment as set forth in Section 3 below.

WHEREAS, pursuant to Section 13(b) of the Existing Indenture Supplement, the parties thereto may amend or revise any term or provision of the Existing Indenture Supplement with the consent of 100% of the Series 2013-VF1 Variable Funding Notes.

WHEREAS, the Series 2013-VF1 Variable Funding Notes are the only outstanding Notes issued pursuant to the Existing Base Indenture.

WHEREAS, the Committed Purchaser is 100% holder of the Series 2013-VF1 Variable Funding Notes issued under the Existing Indenture Supplement.

NOW, THEREFORE, the Issuer, Indenture Trustee, Servicer, Administrator, Administrative Agent and Committed Purchaser hereby agree, 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, that the Existing Base Indenture and the Existing Indenture Supplement are hereby amended as follows:

SECTION 1.    Amendments to Existing Base Indenture.

1.1     Section 1.1 of the Existing Base Indenture is hereby amended by deleting clauses (x) and (xiii) of the definition of “Facility Eligible Receivable” in their entirety and replacing such clauses with the following

(x)[RESERVED].

(xiii)[RESERVED].

1.2    The header to Schedule 3 to the Existing Base Indenture is hereby amended and restated in its entirety to read as follows:

Designated Servicing Agreements under which the Servicer (or servicers) is required to consent to or initiate termination

1.3    The header to Schedule 4 to the Existing Base Indenture is hereby amended and restated in its entirety to read as follows:

Designated Servicing Agreements under which (i) certain Receivables are not required to be reimbursed or repaid upon the exercise of any termination and (ii) the consent of the Servicer or servicers is not required to consent to or initiate termination

SECTION 2.    Amendments to Existing Indenture Supplement.

2.1    Section 2 of the Existing Indenture Supplement is hereby amended by amending the definition of “Advance Rates” by adding a new clause (vi) at the end thereof as follows: (i) deleting the “and” appearing at the end of clause (v) thereof, (ii) replacing the “.” at the end of clause (v) thereof with “; and” and (iii) inserting the following new clause (vi):

(vi)the Advance Rate for any Specified Receivable related to any Class of Notes shall be equal to the Advance Rates set forth in the table below minus 5.00%.

2.2    Section 2 of the Existing Indenture Supplement is hereby amended by deleting the definition of “Initial VFN Maximum Note Balance” in its entirety and replacing it with the following:

“Initial VFN Maximum Note Balance” means $1,000,000,000.

2.3    Section 2 of the Existing Indenture Supplement is hereby amended by deleting the definition of “Maximum VFN Principal Balance” in its entirety and replacing it with the following:

“Maximum VFN Principal Balance” means, for Class A-VF1, (i) initially, the Initial VFN Maximum Note Balance, or, in the case of each such Class on any date, a lesser amount calculated pursuant to a written agreement between the Servicer, the Administrator and the Administrative Agent; provided, however, that, (i) if the VFN balance for Class A-VF1 has been reduced below 60% of the Initial VFN Maximum Note Balance on any date on or after April 18, 2014 (or, if April 18, 2014 is not a Business Day, the next succeeding Business Day), the VFN thereafter may be drawn only up to 60% of the Initial VFN Maximum Note Balance, (ii) if the VFN balance for Class A-VF1 has been reduced below 50% of the Initial VFN Maximum Note Balance on any date on or after May 18, 2014 (or, if May 18, 2014 is not a Business Day, the next succeeding Business Day), the VFN thereafter may be drawn only up to 50% of the Initial VFN Maximum Note Balance, and (iii) if the VFN balance for Class A-VF1 has been reduced below 40% of the Initial VFN Maximum Note Balance on any date on or after June 18, 2014 (or, if June 18, 2014 is not a Business Day, the next succeeding Business Day), the VFN thereafter may be drawn only up to 40% of the Initial VFN Maximum Note Balance.

2.4    Section 2 of the Existing Indenture Supplement is hereby amended by deleting the definition of “Mortgage Loan-Level Market Value Ratio” in its entirety and replacing it with the following:

“Mortgage Loan-Level Market Value Ratio” means, as of any date of determination with respect to a Mortgage Loan or REO Property that is secured by a first lien on the related Mortgaged Property or REO Property, the ratio (expressed as a percentage) of (x) (i) with respect to Section 5(vii)(a) hereof and Section 5(vii)(c) hereof, the aggregate Receivable Balance of all Loan-Level Receivables and Specified Receivables outstanding with respect to such Mortgage Loan or REO Property on such date or (ii) with respect to Section 5(vii)(b) hereof and Section 5(vii)(d)hereof, the aggregate Receivable Balance of all Receivables outstanding with respect to such Mortgage Loan or REO Property on such date over (y) the Market Value of such Mortgaged Property or REO Property on such date.

2.5    Section 2 of the Existing Indenture Supplement is hereby amended by adding the following definition of “OTP Provision” in the appropriate alphabetical location:

“OTP Provision” means, in respect of any Designated Servicing Agreement, any provision permitting an optional early termination of the transactions contemplated thereunder or “clean-up call” thereunder.

2.6    Section 2 of the Existing Indenture Supplement is hereby amended by adding the following definition of “Specified Receivable” in the appropriate alphabetical location:

“Specified Receivable” means, at any time, any Receivables in respect of which:

(i) the provisions of the related Designated Servicing Agreement do not expressly require such Receivable to be repaid or reimbursed in full in connection with the exercise of any OTP Provision;

(ii)the Servicer is not the sole holder of the right to initiate the optional termination or clean-up call contemplated by the related OTP Provision and the Servicer has not received a written agreement in a form acceptable to the Administrative Agent from each other holder (including any assignee of the Servicer) of the right to initiate the optional termination or clean-up call contemplated by the related OTP Provision that such holder or holders will not initiate such optional termination or clean-up call unless all Advances and Deferred Servicing Fees under the related Designated Servicing Agreement are reimbursed or repaid, as applicable, in the connection with such optional termination or clean-up call;

(iii)consent of the Servicer is not required for any party to initiate optional termination or clean-up call contemplated by the related OTP Provision; and

(iv)the clean-up call or optional termination contemplated by such OTP Provision under the related Designated Servicing Agreement may be exercised at such time.

Receivables meeting the criteria described in clause (i) above but in respect of which either (a) the Servicer is the sole holder of the right to initiate the optional termination or clean-up call contemplated by the related OTP Provision, (b) consent of the Servicer is required for any other party to initiate the optional termination or clean-up call contemplated by the related OTP Provision or (c) each other holder of the right to initiate optional termination or clean-up call contemplated by the related OTP Provision has agreed in writing in a form acceptable to the Administrative Agent not to initiate such optional termination or clean-up call unless all Advances and Deferred Servicing Fees under the related Designated Servicing Agreement are reimbursed or repaid, as applicable, are set forth on Schedule 3 to the Base Indenture (as such Schedule 3 may be updated from time to time in accordance with the Base Indenture). Receivables meeting the criteria described in clauses (i), (ii) and (iii) above are set forth on Schedule 4 to the Base Indenture (as such Schedule 4 may be updated from time to time in accordance with the Base Indenture).

2.7    Section 5 of the Existing Indenture Supplement is hereby amended by deleting clause (vii) in its entirety and replacing it with the following:

(vii) if on any date that is ninety (90) days after the Designation Date in respect of the related Designated Servicing Agreement, (a) if it is a Loan-Level Receivable (other than any Non-

FIFO Receivables) or a Specified Receivable, its Receivable Balance, when added to the aggregate Receivable Balances of all Receivables with respect to the related Mortgage Loan or REO Property, would cause the related Mortgage Loan-Level Market Value Ratio to exceed 50.0%, (b) if it is a Receivable (other than any Non-FIFO Receivables) related to a Mortgage Loan or REO Property that is attributable to a Designated Servicing Agreement that is a Small Threshold Servicing Agreement, its Receivable Balance, when added to the aggregate Receivable Balances of all Receivables related to the Mortgage Loan or REO Property that is attributable to a Designated Servicing Agreement that is a Small Threshold Servicing Agreement, would cause the related Mortgage Loan-Level Market Value Ratio to exceed 50.0%, (c) if it is a Non-FIFO Receivable and either a Specified Receivable or a Loan-Level Receivable, its Receivable Balance, when added to the aggregate Receivable Balances of all Receivables with respect to the related Mortgage Loan or REO Property, would cause the related Mortgage Loan-Level Market Value Ratio to exceed 25.0% or (d) if it is a Receivable and a Non-FIFO Receivable related to a Mortgage Loan or REO Property that is attributable to a Designated Servicing Agreement that is a Small Threshold Servicing Agreement, its Receivable Balance, when added to the aggregate Receivable Balances of all Receivables related to the Mortgage Loan or REO Property that is attributable to a Designated Servicing Agreement that is a Small Threshold Servicing Agreement, would cause the related Mortgage Loan-Level Market Value Ratio to exceed 25.0%;

2.8    Section 5 of the Existing Indenture Supplement is hereby amended by deleting the reference to the percentage “20.0%” in clause (x) thereof and substituting the percentage “25.0%” therefor.

2.9    Section 5 of the Existing Indenture Supplement is hereby amended by (i) deleting the “or” appearing at the end of clause (ix) thereof, (ii) replacing the “.” at the end of clause (x) thereof with a “;” and (iii) inserting the following new clauses (xi) and (xii):                

(xi)is a Facility Eligible Receivable that is a Specified Receivable, to the extent that the

Receivable Balance of such Receivable, when added to the aggregate Receivable Balances

of all Facility Eligible Receivables outstanding that are Specified Receivables, would cause

the total Receivable Balances attributable to all Facility Eligible Receivables outstanding that

are Specified Receivables to exceed 5.0% of the total Receivable Balances of all Facility

Eligible Receivables included in the Trust Estate; or                                

(xii)is a Facility Eligible Receivable that is a Specified Receivable for which (I) (a) the

Servicer has received a notice that the holder of the right to initiate the optional termination

or clean-up call contemplated by the related OTP Provision is exercising such right, (b) more

than ten (10) Business Days have occurred since the Servicer’s receipt of such notice or a

Funding Date has occurred since the Servicer’s receipt of such notice and (c) such notice does

not expressly provide that all Advances and Deferred Servicing Fees under the related

Designated Servicing Agreement will be repaid or reimbursed in full upon the exercise of

such optional termination or clean-up call or (II) the related optional termination or clean-up

call has been exercised and such Specified Receivable has not been repaid or reimbursed.

2.10    Section 10 of the Existing Indenture Supplement is hereby amended by deleting clause (a)(viii) in its entirety and replacing it with the following:

(viii)on any date that is ninety (90) days after the Designation Date in respect of the related Designated Servicing Agreement, the Mortgage Loan-Level Market Value Ratio for each Mortgage Loan related to a Loan-Level Receivable or a Receivable related to a Mortgage Loan or REO Property that is attributable to a Designated Servicing Agreement that is a Small Threshold Servicing Agreement, and if such Mortgage Loan-Level Market Value Ratio exceeds 50.0% or 25.0%, as applicable, pursuant to Section 5(vii) of this Indenture Supplement;

SECTION 3.    Noteholder Consent and Waivers. The Committed Purchaser is 100% holder of the Series 2013-VF1 Variable Funding Notes. The Committed Purchaser hereby consents to this Amendment and unanimously consents to waive the requirement in Section 12.2 of the Existing Base Indenture for the delivery of an Issuer Tax Opinion. The Committed Purchaser hereby instructs the Indenture Trustee to waive each requirement for the delivery of opinions and certificates in connection with this Amendment pursuant to Sections 1.3, 1.4 and 12.3 of the Existing Base Indenture.

SECTION 4.    Derivative Counterparty Consent. The Derivative Counterparty hereby consents to this Amendment.

SECTION 5.    No Note Rating Agencies. As of the date hereof, there are no Note Rating Agencies.

SECTION 6.    Representations and Warranties.  The Issuer hereby represents and warrants to the Indenture Trustee, the Administrative Agent, the Committed Purchaser and the Derivative Counterparty that as of the date hereof, (i) there are no Note Rating Agencies, (ii) the Issuer is in compliance with all the terms and provisions set forth in the Existing Indenture on its part to be observed or performed and remains bound by the terms thereof, and (iii) after giving effect to the terms of this Amendment, no Event of Default has occurred or is continuing, and hereby confirms and reaffirms the representations and warranties contained in Section 9.1 of the Existing Base Indenture.

SECTION 7.    Limited Effect. Except as expressly amended and modified by this Amendment, the Existing Indenture shall continue to be, and shall remain, in full force and effect in accordance with its terms and the execution of this Amendment.

SECTION 8.    Severability. Each provision and agreement herein shall be treated as separate and independent from any other provision or agreement herein and shall be enforceable notwithstanding the unenforceability of any such other provision or agreement.

SECTION 9.    Counterparts. This Amendment may be executed by each of the parties hereto on any number of separate counterparts, each of which shall be an original and all of which taken together shall constitute one and the same instrument.

SECTION 10.    GOVERNING LAW. THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT REFERENCE TO THE CHOICE OF LAW PROVISIONS THEREOF.

[SIGNATURE PAGES FOLLOW]

IN WITNESS WHEREOF, the undersigned have caused this Amendment to be duly executed as of the date first above written.

NATIONSTAR SERVICER ADVANCE RECEIVABLES TRUST 2013-BOFA, as Issuer

By: Nationstar Mortgage LLC, as its Administrator

By: /s/ Ellen Coleman Name: Ellen Coleman

Title: EVP

NATIONSTAR MORTGAGE LLC, as Administrator and as Servicer

By: /s/ Ellen Coleman

Name: Ellen Coleman

Title: EVP

Signature Page to Amendment No. 2 to Base Indenture and Amendment No. 2 to Series 2013-VF1 Indenture Supplement

WELLS FARGO BANK, N.A., as Indenture Trustee and not in its individual capacity

By: /s/ Mark Fabio ..

Name: Mark Fabio

Title: Vice President

Signature Page to Amendment No. 2 to Base Indenture and Amendment No. 2 to Series 2013-VF1 Indenture Supplement

BANK OF AMERICA, N.A., as Administrative Agent and Committed Purchaser

By: /s/ Jing Isabel Liu

Name: Jing Isabel Liu

Title: Vice President

Signature Page to Amendment No. 2 to Base Indenture and Amendment No. 2 to Series 2013-VF1 Indenture Supplement

EX-4.3

‑3‑

Exhibit 4.3

EXECUTION COPY

AMENDMENT NO. 3 TO SERIES 2013-VF1 INDENTURE SUPPLEMENT

Amendment No. 3 to the Existing Indenture Supplement (defined below) (this “Amendment”), dated as of April 18, 2014, among NATIONSTAR SERVICER ADVANCE RECEIVABLES TRUST 2013-BOFA, a statutory trust organized under the laws of the State of Delaware (the “Issuer”), WELLS FARGO BANK, N.A. (“Wells Fargo”), a national banking association, as indenture trustee, (in such capacity, the “Indenture Trustee”), NATIONSTAR MORTGAGE LLC, a limited liability company organized in the State of Delaware (“Nationstar”), as administrator on behalf of the Issuer (in such capacity, the “Administrator”) and as servicer under the Designated Servicing Agreements (in such capacity, the “Servicer”), and BANK OF AMERICA, N.A., as administrative agent (in such capacity, the “Administrative Agent”) and as committed purchaser (in such capacity, the “Committed Purchaser”).

RECITALS

WHEREAS, the Issuer, Indenture Trustee, Wells Fargo, as calculation agent (in such capacity, the “Calculation Agent”), as paying agent (in such capacity, the “Paying Agent”) and as securities intermediary (in such capacity, the “Securities Intermediary”), Servicer, Administrator and Administrative Agent are parties to that certain Indenture, dated as of July 1, 2013 (as amended by Amendment No. 1, dated as of October 9, 2013 and as amended by Amendment No. 2, dated as of February 28, 2014, the “Existing Base Indenture”), the provisions of which are incorporated, as modified by that certain Indenture Supplement, dated as of July 1, 2013 (as amended by Amendment No. 1, dated as of October 9, 2013and as amended by Amendment No. 2, dated as of February 28, 2014, the “Existing Indenture Supplement,” and together with the Base Indenture, the “Existing Indenture”), among the Issuer, Indenture Trustee, Calculation Agent, Paying Agent, Securities Intermediary, Servicer, Administrator and the Administrative Agent. Capitalized terms used and not otherwise defined herein shall have the respective meanings given them in the Existing Indenture.

WHEREAS, the Issuer, Indenture Trustee, Servicer, Administrator, Administrative Agent and Committed Purchaser have agreed, subject to the terms and conditions of this Amendment, that the Existing Indenture Supplement be amended to reflect certain agreed upon revisions to the terms of the Existing Indenture Supplement.

WHEREAS, pursuant to Section 12.2 of the Existing Base Indenture, the parties hereto may amend the Existing Base Indenture and any Indenture Supplement, with prior notice to each Note Rating Agency, with the consent of any applicable Derivative Counterparty and the Series Required Noteholders of each Series materially and adversely affected by such amendment and upon delivery of an Issuer Tax Opinion, for the purpose of adding any provisions to the Existing Base Indenture.

WHEREAS, the consent of the Derivative Counterparty is not required hereunder pursuant to Section 12.6 of the Existing Base Indenture.

WHEREAS, as of the date hereof, there are no Note Rating Agencies.

WHEREAS, pursuant to Section 13(b) of the Existing Indenture Supplement, the parties thereto may amend or revise any term or provision of the Existing Indenture Supplement with the consent of 100% of the Series 2013-VF1 Variable Funding Notes.

WHEREAS, the Series 2013-VF1 Variable Funding Notes are the only outstanding Notes issued pursuant to the Existing Base Indenture.

WHEREAS, the Committed Purchaser is 100% Noteholder of the Series 2013-VF1 Variable Funding Notes issued under the Existing Indenture Supplement.

NOW, THEREFORE, the Issuer, Indenture Trustee, Servicer, Administrator, Administrative Agent and Committed Purchaser hereby agree, 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, that the Existing Indenture Supplement are hereby amended as follows:

SECTION 1.    Amendments to Existing Indenture Supplement.

1.1    Section 2 of the Existing Indenture Supplement is hereby amended by amending the definition of “Advance Rates” by deleting clauses (iii), (iv) and (v) thereof in their entirety and replacing them as follows:

(iii) [RESERVED];

(iv) [RESERVED];

(v) [RESERVED];

1.2    Section 2 of the Existing Indenture Supplement is hereby amended by deleting the definition of “Maximum VFN Principal Balance” in its entirety and replacing it with the following:

“Maximum VFN Principal Balance” means, for Class A-VF1, the Initial VFN Maximum Note Balance.

1.3    Section 2 of the Existing Indenture Supplement is hereby amended by deleting the definition of “Senior Margin” in its entirety and replacing it with the following:

“Senior Margin” means, for Class A-VF1, 2.50%.

SECTION 2.    Noteholder Consent and Waivers. The Committed Purchaser is 100% Noteholder of the Series 2013-VF1 Variable Funding Notes. The Committed Purchaser hereby consents to this Amendment and unanimously consents to waive the requirement in Section 12.2 of the Existing Base Indenture for the delivery of an Issuer Tax Opinion. The Committed Purchaser hereby instructs the Indenture Trustee to waive each requirement for the delivery of opinions and certificates in connection with this Amendment pursuant to Sections 1.3, 1.4 and 12.3 of the Existing Base Indenture.

SECTION 3.    No Note Rating Agencies. As of the date hereof, there are no Note Rating Agencies.

SECTION 4.    Representations and Warranties.  The Issuer hereby represents and warrants to the Indenture Trustee, the Administrative Agent and the Committed Purchaser that as of the date hereof, (i) there are no Note Rating Agencies, (ii) the Issuer is in compliance with all the terms and provisions

set forth in the Existing Indenture on its part to be observed or performed and remains bound by the terms thereof, and (iii) after giving effect to the terms of this Amendment, no Event of Default has occurred or is continuing, and hereby confirms and reaffirms the representations and warranties contained in Section 9.1 of the Existing Base Indenture.

SECTION 5.    Limited Effect. Except as expressly amended and modified by this Amendment, the Existing Indenture shall continue to be, and shall remain, in full force and effect in accordance with its terms and the execution of this Amendment.

SECTION 6.    Severability. Each provision and agreement herein shall be treated as separate and independent from any other provision or agreement herein and shall be enforceable notwithstanding the unenforceability of any such other provision or agreement.

SECTION 7.     Counterparts. This Amendment may be executed by each of the parties hereto on any number of separate counterparts, each of which shall be an original and all of which taken together shall constitute one and the same instrument.

SECTION 8.GOVERNING LAW. THIS AMENDMENT AND ANY CLAIM, CONTROVERSY OR DISPUTE ARISING UNDER OR RELATED TO OR IN CONNECTION WITH THIS AMENDMENT, THE RELATIONSHIP OF THE PARTIES HERETO, AND/OR THE INTERPRETATION AND ENFORCEMENT OF THE RIGHTS AND DUTIES OF THE PARTIES HERETO WILL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK (WITHOUT REFERENCE TO THE CONFLICT OF LAW PRINCIPLES THEREOF OTHER THAN SECTIONS 5-1401 AND 5-1402 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.

[SIGNATURE PAGES FOLLOW]

IN WITNESS WHEREOF, the undersigned have caused this Amendment to be duly executed as of the date first above written.

NATIONSTAR SERVICER ADVANCE RECEIVABLES TRUST 2013-BOFA, as Issuer

By: Nationstar Mortgage LLC, as its Administrator

By: /s/ Ellen Coleman

Name: Ellen Coleman

Title: EVP

NATIONSTAR MORTGAGE LLC, as Administrator and as Servicer

By: /s/ Ellen Coleman

Name: Ellen Coleman

Title: EVP

Signature Page to Amendment No. 3 to Series 2013-VF1 Indenture Supplement

WELLS FARGO BANK, N.A., as Indenture Trustee and not in its individual capacity

By: /s/ Mark DeFabio

Name: Mark DeFabio

Title: Vice President

Signature Page to Amendment No. 3 to Series 2013-VF1 Indenture Supplement

BANK OF AMERICA, N.A., as Administrative Agent and Committed Purchaser

By: /s/ Jing Isabel Liu

Name: Jing Isabel Liu

Title: Vice President

Signature Page to Amendment No. 3 to Series 2013-VF1 Indenture Supplement

EX-4.4

Exhibit 4.4

EXECUTION COPY

AMENDMENT NO. 1 TO FOURTH AMENDED AND RESTATED INDENTURE

Amendment No. 1 to the Fourth Amended and Restated Indenture (this “Amendment”), dated as of April 22, 2014, among NATIONSTAR AGENCY ADVANCE FUNDING TRUST, a statutory trust organized under the laws of the State of Delaware (the “Issuer”), THE BANK OF NEW YORK MELLON (“BNY Mellon”), a New York banking corporation, as Indenture Trustee (the “IndentureTrustee”), NATIONSTAR MORTGAGE LLC, a limited liability company organized in the State of Delaware (“Nationstar”), as Administrator on behalf of the Issuer (in such capacity, the “Administrator”) and as Servicer under the Designated Servicing Agreements (in such capacity, the “Servicer”), BARCLAYS BANK PLC, as Administrative Agent (“Barclays”) and consented to by Barclays, as the sole Noteholder of the Series 2013-VF1 Notes. Capitalized terms used and not otherwise defined herein shall have the respective meanings given them in the Existing Indenture.

RECITALS

WHEREAS, the Issuer, the Indenture Trustee, BNY Mellon, as Calculation Agent (the “Calculation Agent”), as Paying Agent (the “Paying Agent”) and as Securities Intermediary (the “Securities Intermediary”), the Servicer, the Administrator and the Administrative Agent are parties to that certain Fourth Amended and Restated Indenture, dated as of January 31, 2013 (the “Existing Indenture,” as amended by this Amendment, the “Indenture”);

WHEREAS, the Issuer, the Indenture Trustee, the Servicer, the Administrator and the Administrative Agent have agreed, subject to the terms and conditions of this Amendment, that the Existing Indenture be amended to reflect certain agreed upon revisions to the terms of the Existing Indenture;

WHEREAS, Section 12.1(c) of the Indenture provides that the Issuer, the Indenture Trustee, the Administrator, the Servicer and the Administrative Agent (in its sole and absolute discretion) may at any time enter into an amendment to the Indenture without the consent of any of the Noteholders or any other Person, upon: (1) delivery of an Issuer Tax Opinion for the purpose of adding any provisions to, or changing in any manner or eliminating any of the provisions of, the Existing Indenture, or modifying in any manner the rights of the Noteholders of the Notes under the Indenture, (2) delivery by the Issuer to the Indenture Trustee of an Officer’s Certificate to the effect that the Issuer reasonably believes that such amendment will not have an Adverse Effect on any Outstanding Notes and is not reasonably expected to have an Adverse Effect at any time in the future (“No Adverse Effect Officer’s Certificate”) and (3) the receipt of notice from each Note Rating Agency currently rating the Outstanding Notes confirming in writing to the Indenture Trustee that such amendment will not cause a Ratings Effect on any Outstanding Notes (“Rating Agency No-Downgrade Letter”). Additionally, pursuant to Section 12.3 of the Indenture, the Indenture Trustee is entitled to an Opinion of Counsel stating that the execution of such amendment is authorized or permitted by the Indenture and that all conditions precedent thereto have been satisfied (the “Authorization Opinion”);

WHEREAS, the Existing Indenture and the Indenture Supplements thereto provide that default in payment of any Subordinated Interest Amounts or Subordinated Cumulative Interest Shortfall Amounts on any Payment Date constitutes an Event of Default with respect to the Series 2013-VF1 Notes but not the Series 2013-T1 Notes or the Series 2013-T2 Notes. Accordingly, the Issuer has requested that the Noteholders of the Series 2013-VF1 Notes consent to the amendments to the Existing Indenture contemplated in the event that such amendments could have an Adverse Effect on such Notes and or could have an Adverse Effect on

such Notes at any time in the future. The Noteholders of the Series 2013-VF1 Notes are willing to provide such consent on the terms and conditions set forth herein; and

WHEREAS, this Amendment is not effective until the execution and delivery of this Amendment by the parties hereto, the delivery of the Issuer Tax Opinion and the Authorization Opinion, the delivery of the No Adverse Effect Officer’s Certificate, and the receipt of the Rating Agency No-Downgrade Letter.

NOW, THEREFORE, the Issuer, the Indenture Trustee, the Servicer, the Administrator, the Administrative Agent and 100% of the Noteholders of the Series 2013-VF1 Notes hereby agree, 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, that the Existing Indenture is hereby amended as follows:

SECTION 1.        Amendments to Existing Indenture. Effective as of the Amendment Effective Date, the Existing Indenture is hereby amended as follows:

1.1    Section 8.1 of the Indenture is hereby amended by adding a new clause (i) at the end thereof as follows: (i) replacing the “.” at the end of clause (h) thereof with “; and” and (ii) inserting the following new clause (i):

“(i) the occurrence of a Facility Early Amortization Event.”

1.2    Section 8.1 of the Indenture is amended further by adding the following sentence at the end of such section:

“Notwithstanding anything contained herein to the contrary and for the avoidance of doubt, default in the payment of any Subordinated Interest Amounts or Subordinated Cumulative Interest Shortfall Amounts at any time shall not constitute an Event of Default under this Indenture.”

SECTION 2.        Consent of the Series 2013-VF1 Notes Noteholder. Barclays, in its capacity as purchaser of the Series 2013-VF1 Notes issued under the Series 2013-VF1 Indenture Supplement, dated as of January 31, 2013, among the Issuer, the Indenture Trustee, the Calculation Agent, the Paying Agent, the Securities Intermediary, Nationstar and Barclays (in such capacity, the “VF1 Purchaser”) confirms that (i) it is sole Noteholder of all Outstanding Notes with respect to the Series 2013-VF1 Notes with the right to instruct the Indenture Trustee, (ii) it is authorized to deliver this Amendment, such power has not been granted or assigned to any other person and the Indenture Trustee may rely upon such certification, (iii) it acknowledges and agrees that the amendments effected by this Amendment shall become effective on the Amendment Effective Date and (iv) its consent to this Amendment shall constitute an “Act” by it as described in Section 1.5 of the Base Indenture.

SECTION 3.        Conditions to Effectiveness of the Amendment. This Amendment shall become effective on the date hereof (the “Amendment Effective Date”) subject to the satisfaction of the following conditions precedent:

3.1    the execution and delivery of this Amendment by all parties hereto;

3.2    the delivery of the Issuer Tax Opinion;

3.3    the delivery of the No Adverse Effect Officer’s Certificate;

3.4    the receipt of the Rating Agency No-Downgrade Letter; and

3.5    the delivery of the Authorization Opinion.

SECTION 4.        Representations and Warranties.  The Issuer hereby represents and warrants to the Indenture Trustee, the Administrative Agent and the VF1 Purchaser, that as of the date hereof, (i) the Issuer is in compliance with all the terms and provisions set forth in the Indenture on its part to be observed or performed and remains bound by the terms thereof, and (ii) after giving effect to the terms of this Amendment, no Event of Default has occurred or is continuing, and hereby confirms and reaffirms the representations and warranties contained in Section 9.1 of the Indenture.

SECTION 5.        Limited Effect. Except as expressly amended and modified by this Amendment, the Existing Indenture shall continue to be, and shall remain, in full force and effect in accordance with its terms and the execution of this Amendment.

SECTION 6.        Severability. Each provision and agreement herein shall be treated as separate and independent from any other provision or agreement herein and shall be enforceable notwithstanding the unenforceability of any such other provision or agreement.

SECTION 7.        Counterparts. This Amendment may be executed by each of the parties hereto on any number of separate counterparts, each of which shall be an original and all of which taken together shall constitute one and the same instrument.

SECTION 8.    GOVERNING LAW. THIS AMENDMENT AND ANY CLAIM, CONTROVERSY OR DISPUTE ARISING UNDER OR RELATED TO OR IN CONNECTION WITH THIS AMENDMENT, THE RELATIONSHIP OF THE PARTIES HERETO, AND/OR THE INTERPRETATION AND ENFORCEMENT OF THE RIGHTS AND DUTIES OF THE PARTIES HERETO WILL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK (WITHOUT REFERENCE TO THE CONFLICT OF LAW PRINCIPLES THEREOF OTHER THAN SECTIONS 5-1401 AND 5-1402 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.

[SIGNATURE PAGES FOLLOW]

IN WITNESS WHEREOF, the undersigned have caused this Amendment to be duly executed as of the date first above written.

NATIONSTAR AGENCY ADVANCE FUNDING TRUST, as Issuer

By: Wilmington Trust, National Association, not in its individual capacity but solely as Owner Trustee

By: /s/ Erwin M. Soriano

Name: Erwin M. Soriano

Title: Vice President

Signature Page to Amendment No. 1 to Fourth Amended and Restated Indenture

NATIONSTAR MORTGAGE LLC, as Administrator and Servicer

By: /s/ Amar Patel

Name: Amar Patel

Title: EVP

Signature Page to Amendment No. 1 to Fourth Amended and Restated Indenture

THE BANK OF NEW YORK MELLON, not in its individual capacity, but solely as Indenture Trustee

By: /s/ Helen Lam

Name: Helen Lam

Title: Vice President

Signature Page to Amendment No. 1 to Fourth Amended and Restated Indenture

BARCLAYS BANK PLC, as Administrative Agent

By: /s/ Joseph O’Doherty

Name: Joseph O’Doherty

Title: Managing Director

Signature Page to Amendment No. 1 to Fourth Amended and Restated Indenture

ACKNOWLEDGED AND CONSENTED:

BARCLAYS BANK PLC, as VF1 Purchaser

By: /s/ Joseph O’Doherty

Name: Joseph O’Doherty

Title: Managing Director

Signature Page to Amendment No. 1 to Fourth Amended and Restated Indenture

EX-10.1

Exhibit 10.1

EXECUTION

AMENDMENT NUMBER SIX

to the

AMENDED AND RESTATED

MASTER REPURCHASE AGREEMENT

dated as of May 17, 2013

among

BARCLAYS BANK PLC,

SUTTON FUNDING LLC

and

NATIONSTAR MORTGAGE LLC

This AMENDMENT NUMBER SIX (this “Amendment”) is made as of this 25th day of November, 2013, by and among Barclays Bank PLC (a “Purchaser” and “Agent”), Sutton Funding LLC (a “Purchaser”) and Nationstar Mortgage LLC (“Seller”), to that certain Amended and Restated Master Repurchase Agreement, dated as of May 17, 2013 (as amended by Amendment Number One to the Master Repurchase Agreement, dated as of July 18, 2013, Amendment Number Two to the Master Repurchase Agreement, dated as of July 24, 2013, Amendment Number Three to the Master Repurchase Agreement, dated as of September 20, 2013, Amendment Number Four to the Master Repurchase Agreement, dated as of November 4, 2013, and Amendment Number Five to the Master Repurchase Agreement, dated as of November 13, 2013, by and among Purchasers and Seller, and as further amended, restated, supplemented or otherwise modified from time to time, the “Repurchase Agreement”), by and among Seller and Purchasers.

WHEREAS, Purchasers, Agent and Seller have agreed to amend the Repurchase Agreement as more particularly set forth herein.

NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and for the mutual covenants herein contained, the parties hereto hereby agree as follows:

SECTION 1.    Amendments. Effective as of November 25, 2013 (the “Effective Date”), the Repurchase Agreement is hereby amended as follows:

(a)Section 2 of the Repurchase Agreement is hereby amended by deleting the defined term “Custodian” in its entirety and replacing it with the following:

“Custodian” means The Bank of New York Mellon Trust Company, N.A., ReconTrust Company, N.A., U.S. Bank National Association or Deutsche Bank National Trust Company, as the case may be, and their successors and permitted assigns.

(b)    Section 2 of the Repurchase Agreement is hereby amended by deleting the defined term “Sutton Custodial Agreement” in its entirety and replacing it with the following:

“Sutton Custodial Agreement” means each of the ReconTrust Custodial Agreement and the U.S. Bank Custodial Agreement.

(c)    Section 2 of the Repurchase Agreement is hereby amended by adding the following defined terms in alphabetical order:

“ReconTrust Custodial Agreement” means that certain Custodial Agreement, dated as of May 17, 2013, among Seller, Purchasers and ReconTrust Company, N.A., entered into in connection with this Agreement, as the same may be amended, modified or supplemented from time to time.

“U.S. Bank Custodial Agreement” means that certain Custodial Agreement, dated as of November 25, 2013, among Seller, Purchasers and U.S. Bank National Association, entered into in connection

with this Agreement, as the same may be amended, modified or supplemented from time to time.

(d)    Section 2 of the Repurchase Agreement is hereby amended by deleting the defined term “Trust Receipt” in its entirety and replacing it with the following:

“Trust Receipt” shall have the meaning assigned thereto in the DB Custodial Agreement or the U.S. Bank Custodial Agreement, as applicable.

(e)    Section 2 of the Repurchase Agreement is hereby amended by deleting the defined term “Request for Release of Documents” in its entirety and replacing it with the following:

“Request for Release of Documents” shall mean the Request for Release of Documents set forth as Exhibit 15 to the BNY Custodial Agreement or ReconTrust Custodial Agreement, or Annex 5 of the DB Custodial Agreement or U.S. Bank Custodial Agreement, as applicable.

(f)    Section 2 of the Repurchase Agreement is hereby amended by deleting the defined term “Certified Mortgage Loan Trust Receipt” in its entirety and replacing it with the following:

“Certified Mortgage Loan Trust Receipt” shall have the meaning assigned thereto in the ReconTrust Custodial Agreement and BNY Custodial Agreement.

(g)    Exhibit B of the Repurchase Agreement is hereby amended by deleting clause (q) in its entirety and replacing it with the following:

(q)Such Mortgage Loan has not been released from the possession of the Custodian under (i) Section 9 of the ReconTrust Custodial Agreement or BNY Custodial Agreement, as applicable, to Seller or its bailee for a period in excess of fifteen (15) calendar days (or if such fifteenth day is not a Business Day, the next succeeding Business Day); (ii) Section 5 of the DB Custodial Agreement, to Seller or its bailee for a period in excess of thirty (30) calendar days (or if such thirtieth day is not a Business Day, the next succeeding Business Day); (iii) Section 5 of the U.S. Bank Custodial Agreement, to Seller or its bailee for a period in excess of thirty (30) calendar days (or if such thirtieth day is not a Business Day, the next succeeding Business Day) or, in each case, such earlier time period as indicated on the related Request for Release of Documents;

SECTION 2.    Fees and Expenses. Seller agrees to pay to Purchasers all fees and out of pocket expenses incurred by Purchasers and Agent in connection with this Amendment, including all reasonable fees and out of pocket costs and expenses of the legal counsel to Purchasers and Agent incurred in connection with this Amendment, in accordance with Section 23(a) of the Repurchase Agreement.

SECTION 3.    Defined Terms. Any terms capitalized but not otherwise defined herein should have the respective meanings set forth in the Repurchase Agreement.

SECTION 4.    Limited Effect. Except as amended hereby, the Repurchase Agreement shall continue in full force and effect in accordance with its terms. Reference to this Amendment need not be made in the Repurchase Agreement or any other instrument or document executed in connection therewith, or in any certificate, letter or communication issued or made pursuant to, or with respect to, the Repurchase Agreement, any reference in any of such items to the Repurchase Agreement being sufficient to refer to the Repurchase Agreement as amended hereby.

SECTION 5.    Representations. In order to induce Purchasers and Agent to execute and deliver this Amendment, Seller hereby represents to Purchasers and Agent that as of the date hereof, (i) Seller is in full compliance with all of the terms and conditions of the Program Documents and remains bound by the terms thereof, and (ii) no Default or Event of Default has occurred and is continuing under the Program Documents.

SECTION 6.    Governing Law. This Amendment and the rights and obligations of the parties hereunder shall be construed in accordance with and governed by the laws of the State of New York, without regard to principles of conflicts of laws (other than Sections 5-1401 and 5‑1402 of the New York General Obligations Law which shall be applicable).

SECTION 7.    Counterparts. For the purpose of facilitating the execution of this Amendment, and for other purposes, this Amendment may be executed simultaneously in any number of counterparts. Each counterpart shall be deemed to be an original, and all such counterparts shall constitute one and the same instrument. The parties intend that faxed signatures and electronically imaged signatures such as .pdf files shall constitute original signatures and are binding on all parties. The original documents shall be promptly delivered, if requested.

[REMAINDER OF THIS PAGE LEFT INTENTIONALLY BLANK]

IN WITNESS WHEREOF, Purchasers, Agent and Seller have caused their names to be duly signed to this Amendment by their respective officers thereunto duly authorized, all as of the date first above written.

BARCLAYS BANK PLC,                    Purchaser and Agent

By: /s/ Adam Yarnold Name: Adam Yarnold Title:

SUTTON FUNDING LLC, Purchaser

By: /s/ Ellen V. Kiernan Name: Ellen V. Kiernan Title:

NATIONSTAR MORTGAGE LLC, Seller

By: /s/ Ellen Coleman Name: Ellen Coleman Title: EVP

Amendment Number Six to A&R Master Repurchase Agreement

EX-10.2

Exhibit 10.2

EXECUTION

AMENDMENT NUMBER SEVEN

to the

AMENDED AND RESTATED

MASTER REPURCHASE AGREEMENT

dated as of May 17, 2013

among

BARCLAYS BANK PLC,

SUTTON FUNDING LLC

and

NATIONSTAR MORTGAGE LLC

This AMENDMENT NUMBER SEVEN (this “Amendment”) is made as of this 14th day of January, 2014, by and among Barclays Bank PLC (a “Purchaser” and “Agent”), Sutton Funding LLC (a “Purchaser”) and Nationstar Mortgage LLC (“Seller”), to that certain Amended and Restated Master Repurchase Agreement, dated as of May 17, 2013 (as amended by Amendment Number One to the Master Repurchase Agreement, dated as of July 18, 2013, Amendment Number Two to the Master Repurchase Agreement, dated as of July 24, 2013, Amendment Number Three to the Master Repurchase Agreement, dated as of September 20, 2013, Amendment Number Four to the Master Repurchase Agreement, dated as of November 4, 2013, Amendment Number Five to the Master Repurchase Agreement, dated as of November 13, 2013, and Amendment Number Six to the Master Repurchase Agreement, dated as of November 25, 2013, by and among Purchasers and Seller, and as further amended, restated, supplemented or otherwise modified from time to time, the “Repurchase Agreement”), by and among Seller and Purchasers.

WHEREAS, Purchasers, Agent and Seller have agreed to amend the Repurchase Agreement as more particularly set forth herein.

NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and for the mutual covenants herein contained, the parties hereto hereby agree as follows:

SECTION 1.    Amendments. Effective as of January 14, 2014 (the “Effective Date”), the Repurchase Agreement is hereby amended as follows:

(a)    Section 2 of the Repurchase Agreement is hereby amended by adding the following defined term:

“Disbursement Agent” means Deutsche Bank National Trust Company, and its successors and permitted assigns.

(b)    Section 2 of the Repurchase Agreement is hereby amended by deleting the defined term “DB Custodial Agreement” in its entirety and replacing it with the following:

“DB Custodial Agreement” means that certain Amended and Restated Custodial and Disbursement Agreement, dated as of January 9, 2014, among Seller, Barclays and Deutsche Bank National Trust Company, as custodian and the Disbursement Agent, entered into in connection with this Agreement and the Mortgage Loan Participation Purchase and Sale Agreement, as the same may be amended, amended and restated, modified or supplemented from time to time.

(c)    Section 2 of the Repurchase Agreement is hereby amended by deleting the defined terms “Wet-Ink Mortgage Loan Funding Report” and “Wet-Ink Mortgage Loan Funding Confirmation” in their entirety.

(d)    Section 3 of the Repurchase Agreement is hereby amended by deleting the row entitled “Wet-Ink Mortgage Loans” in the chart in clause (c) and replacing it with the following:

AM Funded Wet-Ink Mortgage Loans	(i) a Transaction Notice and (ii) Seller Mortgage Loan Schedule	No later than 4:00 p.m. (New York City time) on the Business Day prior to the requested Purchase Date	Purchaser, Custodian and Disbursement Agent	No later than 9:00 a.m. (New York City time) on the requested Purchase Date
PM Funded Wet-Ink Mortgage Loans	(i) a Transaction Notice and (ii) Seller Mortgage Loan Schedule	No later than 1:00 p.m. (New York City time) on the requested Purchase Date	Purchaser, Custodian and Disbursement Agent	No later than 4:00 p.m. (New York City time) on the requested Purchase Date

(e)    Section 10(b)(i) of the Repurchase Agreement is hereby amended by deleting clause (H) and replacing

it with the following:

(H)Reserved.

(f)    Section 13 of the Repurchase Agreement is hereby amended by deleting clause (t) and replacing it

with the following:

(t)Affiliated Parties. Seller is not an Affiliate of the Custodian, Disbursement Agent, Settlement Agent or any other party to a Program Document hereunder.

SECTION 2.    Fees and Expenses. Seller agrees to pay to Purchasers all fees and out of pocket expenses incurred by Purchasers and Agent in connection with this Amendment, including all reasonable fees and out of pocket costs and expenses of the legal counsel to Purchasers and Agent incurred in connection with this Amendment, in accordance with Section 23(a) of the Repurchase Agreement.

SECTION 3.    Defined Terms. Any terms capitalized but not otherwise defined herein should have the respective meanings set forth in the Repurchase Agreement.

SECTION 4.    Limited Effect. Except as amended hereby, the Repurchase Agreement shall continue in full force and effect in accordance with its terms. Reference to this Amendment need not be made in the Repurchase Agreement or any other instrument or document executed in connection therewith, or in any certificate, letter or communication issued or made pursuant to, or with respect to, the Repurchase Agreement, any reference in any of such items to the Repurchase Agreement being sufficient to refer to the Repurchase Agreement as amended hereby.

SECTION 5.    Representations. In order to induce Purchasers and Agent to execute and deliver this Amendment, Seller hereby represents to Purchasers and Agent that as of the date hereof, (i) Seller is in full compliance with all of the terms and conditions of the Program Documents and remains bound by the terms thereof, and (ii) no Default or Event of Default has occurred and is continuing under the Program Documents.

SECTION 6.    Governing Law. This Amendment and the rights and obligations of the parties hereunder shall be construed in accordance with and governed by the laws of the State of New York, without regard to principles of conflicts of laws (other than Sections 5-1401 and 5‑1402 of the New York General Obligations Law which shall be applicable).

SECTION 7.    Counterparts. For the purpose of facilitating the execution of this Amendment, and for other purposes, this Amendment may be executed simultaneously in any number of counterparts. Each counterpart shall be deemed to be an original, and all such counterparts shall constitute one and the same instrument. The parties intend that faxed signatures and electronically imaged signatures such as .pdf files shall constitute original signatures and are binding on all parties. The original documents shall be promptly delivered, if requested.

IN WITNESS WHEREOF, Purchasers, Agent and Seller have caused their names to be duly signed to this Amendment by their respective officers thereunto duly authorized, all as of the date first above written.

BARCLAYS BANK PLC, Purchaser and Agent

By: /s/ Joseph O’Doherty Name: Joseph O’Doherty Title:

SUTTON FUNDING LLC, Purchaser

By: /s/ Ellen V. Kiernan Name: Ellen V. Kiernan Title: EVP

NATIONSTAR MORTGAGE LLC, Seller

By: /s/ Ellen Coleman Name: Ellen Coleman Title: EVP

EX-10.3

NATIONSTAR MORTGAGE LLC

ANNUAL INCENTIVE COMPENSATION PLAN

1. Purpose.

The purpose of the Nationstar Mortgage LLC Annual Incentive Compensation Plan (the “Plan”) is to provide certain senior executive officers of Nationstar Mortgage LLC (the “Company”) with annual cash incentive bonus opportunities that are tied to both the achievement of financial performance goals by the Company and the attainment of individual performance objectives by a Participant.

2.Administration.

The Plan shall be administered by the Compensation Committee of the Board of Directors of Nationstar Mortgage Holdings Inc. (the “Committee”). The Committee shall have discretionary and final authority to interpret the terms and provisions of the Plan and may adopt, alter or repeal any administrative rules, guidelines and/or practices governing the operation of the Plan as it shall from time to time deem advisable; provided, however, that the Committee may not decrease the amount of the Bonus Pool (as described below) and provided, further, that no action taken under this Section 2 shall intentionally cause a Bonus payment to become subject to Sections 409A or 457A of the Internal Revenue Code of 1986, as amended.

3.Eligibility.

Any senior executive officer of the Company who is either listed on Exhibit A attached hereto or is otherwise notified in writing by the Company and the Committee of his or her eligibility to participate shall be eligible to participate in the Plan (each such officer, a “Participant”).

4.Determination and Payment of Annual Bonus Awards.

(a) Amount of Bonus Pool. The annual bonus pool from which a bonus (a “Bonus”) may be paid to a Participant pursuant to the terms of the Plan shall be equal to four percent (4%) of the Company’s “Operating Cash Flow,” as defined in and determined in accordance with the terms set forth in Exhibit B attached hereto, which Exhibit B may be amended from time to time (the “Bonus Pool”).

(b) Allocation of Bonus Pool Among Participants. For each fiscal year during which the Plan is in effect, the Committee shall determine, in its sole discretion, but following consultation with the Chief Executive Officer of the Company, the percentage of the Bonus Pool to be allocated to each Participant (the “Annual Allocation”), provided that, in no event may the Annual Allocation for such Participant be less than seventy-five percent (75%) of the Annual Allocation for that Participant in the immediately preceding fiscal year. The Committee shall provide notice to the Chief Executive Officer of the Company of such Annual Allocation. Upon receipt of such notice from the Committee, the Chief Executive Officer of the Company shall provide notice to each Participant of that Participant’s Annual Allocation.

(c) Eligibility to Receive Bonus Payment. Except to the extent otherwise provided in a Participant’s employment agreement with the Company, a Participant shall only be eligible to receive the payment of a Bonus pursuant to the terms of the Plan if, as of the last day of the fiscal year to which such Bonus relates, the Participant (i) is employed by the Company

or its subsidiaries and (ii) has not notified the Company of his or her intent to resign employment with the Company and its subsidiaries.

(d) Bonus Payment. A Bonus, if any, shall be paid to a Participant, in cash, as soon as practicable after the Company’s financial results for the fiscal year have been determined; provided, however, that in no event shall such payment be made earlier than January 1^st or later than March 15^th of the year following the year to which it relates.

(e) Termination of Employment of a Participant. Subject to Section 4(c) hereof, in the event that a Participant terminates employment with the Company for any reason, the Participant shall no longer be entitled to participate in the Plan and the Committee shall, in its sole discretion, (i) apportion all (or a portion) of the terminated Participant’s Annual Allocation among the remaining Participants, (ii) add a new Participant (or Participants) to the Plan and apportion all (or a portion) of the terminated Participant’s Annual Allocation to the new Participant (or Participants) or (iii) implement any combination of the foregoing.

5. Amendment and Termination.

The Committee shall have the right to amend, modify, suspend or terminate the Plan at any time. Notwithstanding the foregoing, no such amendment, modification, suspension or termination may, without the consent of any Participant affected thereby, impair the rights of such Participant with respect to a Bonus which became vested prior to the date thereof.

6.Miscellaneous

(a) No Right to Continued Employment or Payment of a Bonus. The right of a Participant to receive a Bonus under the Plan shall not be deemed a right to continued employment by the Company or its subsidiaries and does not otherwise restrict the Participant’s right or the right of the Company to terminate the Participant’s employment at any time, with or without notice and with or without cause. No Participant has any claim to be awarded a Bonus, and there is no obligation for uniformity of treatment of Participants. The terms and conditions of each Bonus and the Committee’s determinations and interpretations with respect thereto need not be the same with respect to each Participant (whether or not the Participants are similarly situated).

(b) Unfunded Status of Awards. Bonus payments shall be made from the general funds of the Company and no special or separate fund shall be established or other segregation of assets made to assure the payment of such bonuses.

(c) Nontransferability. No Participant shall have the power or right to transfer (other than by will or the laws of descent and distribution), alienate or otherwise encumber his or her interest under the Plan.

(d) Withholding Taxes. The Company shall withhold all applicable federal, state and local taxes from the payment of any Bonus made pursuant to the Plan, in accordance with applicable laws and regulations.

(e) Governing Law. The Plan shall be governed by and construed in accordance with the laws of the State of Texas, without regard to its principles of conflict of laws.

(f) Effective Date. The effective date of the Plan is January 1, 2014.

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, 2014 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. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. 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

d. 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 9, 2014
/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, 2014 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. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. 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

d. 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 9, 2014
/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, 2014, 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 9, 2014
/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, 2014, 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 9, 2014
/s/ David C. Hisey
David C. Hisey
Chief Financial Officer

XML

Share-based Compensation (Tables)

3 Months Ended

Mar. 31, 2014

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, 2014 under the 2012 Plan (shares in thousands):

	Shares	Weighted Average Grant Date Fair Value	Weighted Average Remaining Contractual Term
Restricted stock outstanding at December 31, 2012	1,293
Grants issued in 2013	307	$37.88	2.0
Forfeited	(56)	$20.46
Shares surrendered to treasury to pay taxes	(168)
Restricted stock outstanding at December 31, 2013	1,376
Grants issued in 2014	620	$29.30	2.9
Forfeited	(14)	$30.10
Shares surrendered to treasury to pay taxes	(149)
Restricted stock outstanding at March 31, 2014	1,833
Restricted stock unvested and expected to vest	977
Restricted stock vested and payable at March 31, 2014	—

XML

Mortgage Loans Held for Sale and Investment - Mortgage Loans Held for Sale (Details) (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Dec. 31, 2013	Aug. 31, 2013	Dec. 31, 2012
Mortgage Loans Held for Sale and Investment [Abstract]
Loans acquired using clean up call				$ 195,800,000
Held for Sale Loans, at Lower of Cost or Market	10,700,000
Loans Receivable Held-for-Sale, Reconciliation to Cash Flow, Transfer from Held-for-sale to Held-for-investment due to Bankruptcy and Foreclosures	3,912,000	8,409,000
Mortgage loans held for sale - unpaid principal balance	1,668,997,000		2,532,881,000
Mark-to-market adjustment	72,129,000		70,499,000
Total mortgage loans held for sale	1,741,126,000	1,703,709,000	2,603,380,000		1,480,537,000
Mortgage Loans Held for Sale nonaccrual basis	45,900,000		69,500,000
Fair Value, Mortgage Loans Held for Sale non-accrual status	$ 40,200,000		$ 63,500,000

XML

Variable Interest Entities and Securitizations - Securitization Trusts (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Dec. 31, 2013
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items]
Total mortgage servicing rights at fair value	$ 2,576,550		$ 2,488,283
Variable Interest Entity, Not Primary Beneficiary
Qualitative and Quantitative Information, Transferor's Continuing Involvement [Line Items]
Total collateral balances	3,708,047		3,831,473
Total certificate balances	3,719,476		3,843,694
Total mortgage servicing rights at fair value	26,945		30,074
Principal Amount of Loans 60 Days or More Past Due	1,033,703	1,179,325
Credit Losses	$ 66,542	$ 64,858

XML

Derivative Financial Instruments - Statement of Operations Effect (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2014
Derivative Instruments, Gain (Loss) [Line Items]
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax	$ (1,963)

XML

Mortgage Loans Held for Sale and Investment - Reconciliation to Cash Flow (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Loans Receivable Held-for-sale, Net, Reconciliation to Cash Flow [Roll Forward]
Mortgage loans held for sale - beginning balance	$ 2,603,380	$ 1,480,537
Mortgage loans originated and purchased, net of fees	5,402,862	3,781,116
Cost of loans sold, net of fees	(6,261,204)	(3,549,535)
Loans Receivable Held-for-Sale, Reconciliation to Cash Flow, Transfer from Held-for-sale to Held-for-investment due to Bankruptcy and Foreclosures	3,912	8,409
Mortgage loans held for sale - ending balance	$ 1,741,126	$ 1,703,709

XML

Indebtedness - Excess Spread Financing Debt (Details) (USD $)	Mar. 31, 2014	Dec. 31, 2013
Debt Instrument
Excess spread financing - fair value	$ 978,183,000	$ 986,410,000
Outstanding Principal associated with Excess Spread Agreements	$ 858,700,000	$ 839,700,000

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Definitive Agreement to Acquire Certain Mortgage Servicing Assets of Residential Capital, LLC (Details) (USD $) In Billions, unless otherwise specified	Mar. 31, 2014
Mortgage Servicing Rights [Line Items]
Principal Amount Outstanding on Loans Managed and Securitized or Asset-backed Financing Arrangement	$ 2.9

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Acquisitions Pro Forma Income (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2013
Business Acquisition, Pro Forma Revenue	$ 481,366
Business Acquisition, Pro Forma Net Income (Loss)	$ 76,493

XML

Mortgage Servicing Rights (Tables)

3 Months Ended

Mar. 31, 2014

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, 2014		December 31, 2013
Discount rate	13.69	%	14.17	%
Total prepayment speeds	20.65	%	20.34	%
Expected weighted-average life	4.64 years		4.63 years
Credit losses	20.22	%	22.87	%
Interest Rate Sensitive MSRs	March 31, 2014		December 31, 2013
Discount rate	9.54	%	10.50	%
Total prepayment speeds	10.52	%	8.97	%
Expected weighted-average life	7.06 years		7.88 years
Credit losses	8.05	%	9.12	%

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, 2014			Year ended December 31, 2013
Fair value at the beginning of the period	$	2,488,283		$	635,860
Additions:
Servicing resulting from transfers of financial assets	58,304			248,381
Purchases of servicing assets	108,312			1,545,584
Changes in fair value:
Due to changes in valuation inputs or assumptions used in the valuation model	(20,645		)	355,586
Other changes in fair value	(57,704		)	(297,128		)
Fair value at the end of the period	$	2,576,550		$	2,488,283
UPB of forward loans serviced for others
Credit sensitive loans	$	264,176,084		$	266,757,777
Interest sensitive loans	62,236,994			56,056,362
Total owned loans	$	326,413,078		$	322,814,139

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, 2014 and December 31, 2013 (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, 2014
Mortgage servicing rights	$	(75,996	)	$	(156,336	)	$	(113,473	)	$	(217,542	)	$	(56,354	)	$	(111,291	)
December 31, 2013
Mortgage servicing rights	$	(74,681	)	$	(151,899	)	$	(101,590	)	$	(195,445	)	$	(89,958	)	$	(178,669	)

Activity of MSRs at Amortized Cost

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

	Three months ended						Year ended
	March 31, 2014						December 31, 2013
	Assets			Liabilities			Assets			Liabilities
Activity of MSRs at amortized cost
Balance at the beginning of the period	$	14,879		$	82,521		$	10,973		$	83,238
Additions:
Purchase /Assumptions of servicing rights/obligations	—			—			3,980			—
Deductions:
Amortization/Accretion	(649		)	(311		)	(74		)	(717		)
Balance at end of the period	$	14,230		$	82,210		$	14,879		$	82,521
Fair value at end of period	$	38,430		$	68,965		$	29,192		$	63,996

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):

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Indebtedness - Participating Interest Financing (Details) (USD $) In Thousands, unless otherwise specified			3 Months Ended
	Mar. 31, 2014	Dec. 31, 2013	Mar. 31, 2014 Participating Interest Financing
Debt Instrument
Interest rate, minimum			0.14%
Interest rate, maximum			7.024%
Participating Interest Financing	$ 1,202,252	$ 1,103,490
Participating interest financing	$ 1,202,252	$ 1,080,718

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Indebtedness - Servicing Segment Notes Payable (Details) (USD $)	3 Months Ended
	Mar. 31, 2014	Dec. 31, 2013	Jan. 31, 2013
Debt Instrument
Collateral Pledged	$ 5,113,408,000	$ 7,725,803,000
Servicing Segment | Notes Payable, Other | MBS Advance Financing Facility
Debt Instrument
Term of agreement	1 year
Maximum borrowing capacity	775,000,000
Variable interest rate basis	LIBOR
Collateral Pledged	606,833,000	651,953,000
Servicing Segment | Notes Payable, Other | Securities Repurchase Facility (2011)
Debt Instrument
Extension period	90 days
Variable interest rate basis	LIBOR
Collateral Pledged	55,603,000	55,603,000
Debt Instrument, Basis Spread on Variable Rate	3.50%
Servicing Segment | Notes Payable, Other | MBS Advance Financing Facility 2012 [Member]
Debt Instrument
Collateral Pledged	136,378,000	220,833,000
Debt Instrument, Basis Spread on Variable Rate	5.00%
Servicing Segment | Notes Payable, Other | NSM Advance Receivable Trust (2013) [Member]
Debt Instrument
Line of Credit Facility, Maximum Borrowing Capacity	1,075,000,000.0
Collateral Pledged	747,067,000	1,347,410,000
Servicing Segment | Notes Payable, Other | NSM Advance Receivable Trust Institutional Investors (2013) [Member]
Debt Instrument
Line of Credit Facility, Maximum Borrowing Capacity	1,000,000,000
Line of Credit Facility, Remaining Borrowing Capacity	650,000,000
Servicing Segment | Notes Payable, Other | NSM Servicer Advance Receivable Trust 2013-BA [Member]
Debt Instrument
Variable interest rate basis	LIBOR
Line of Credit Facility, Maximum Borrowing Capacity		1,000,000,000.0
Collateral Pledged	709,165,000	1,764,296,000
Debt Instrument, Basis Spread on Variable Rate	2.50%
Servicing Segment | Notes Payable to Banks | MBS Advance Financing Facility
Debt Instrument
Variable interest rate basis	LIBOR
Servicing Segment | Notes Payable to Banks | Agency Advance Financing Facility (2011) [Member]
Debt Instrument
Term of agreement	3 years
Maximum borrowing capacity	800,000,000
Variable interest rate basis	LIBOR
Debt Instrument, Face Amount			300,000,000
Collateral Pledged	837,790,000	918,574,000
Debt Instrument, Basis Spread on Variable Rate	3.75%
Servicing Segment | Notes Payable to Banks | Reverse Participations Financing Facility
Debt Instrument
Maximum borrowing capacity	150,000,000
Variable interest rate basis	LIBOR
Collateral Pledged	75,784,000	124,536,000
Debt Instrument, Basis Spread on Variable Rate	4.00%
Servicing Segment | Notes Payable to Banks | NSM Advance Receivable Trust (2013) [Member]
Debt Instrument
Variable interest rate basis	LIBOR
Originations Segment | Notes Payable to Banks | R ABS Advance Financing Facility (2012) [Member]
Debt Instrument
Collateral Pledged	386,871,000	477,980,000
Originations Segment | Notes Payable to Banks | Warehouse Facility $1 Billion (2011) [Member]
Debt Instrument
Maximum borrowing capacity	750,000,000
Variable interest rate basis	LIBOR
Minimum | Servicing Segment | Notes Payable, Other | MBS Advance Financing Facility
Debt Instrument
Debt Instrument, Basis Spread on Variable Rate	4.00%
Minimum | Servicing Segment | Notes Payable to Banks | MBS Advance Financing Facility
Debt Instrument
Debt Instrument, Basis Spread on Variable Rate	2.50%
Minimum | Servicing Segment | Notes Payable to Banks | Agency Advance Financing Facility (2011) [Member]
Debt Instrument
Debt Instrument, Basis Spread on Variable Rate	1.20%
Minimum | Servicing Segment | Notes Payable to Banks | NSM Advance Receivable Trust (2013) [Member]
Debt Instrument
Debt Instrument, Basis Spread on Variable Rate	1.15%
Minimum | Originations Segment | Notes Payable to Banks | R ABS Advance Financing Facility (2012) [Member]
Debt Instrument
Debt Instrument, Basis Spread on Variable Rate	2.25%
Minimum | Originations Segment | Notes Payable to Banks | Warehouse Facility $1 Billion (2011) [Member]
Debt Instrument
Debt Instrument, Basis Spread on Variable Rate	2.25%
Maximum | Servicing Segment | Notes Payable to Banks | Agency Advance Financing Facility (2011) [Member]
Debt Instrument
Debt Instrument, Basis Spread on Variable Rate	3.75%
Maximum | Servicing Segment | Notes Payable to Banks | NSM Advance Receivable Trust (2013) [Member]
Debt Instrument
Debt Instrument, Basis Spread on Variable Rate	5.30%
Maximum | Originations Segment | Notes Payable to Banks | R ABS Advance Financing Facility (2012) [Member]
Debt Instrument
Debt Instrument, Basis Spread on Variable Rate	2.75%
Maximum | Originations Segment | Notes Payable to Banks | Warehouse Facility $1 Billion (2011) [Member]
Debt Instrument
Debt Instrument, Basis Spread on Variable Rate	3.25%
Weighted Average [Member] | Servicing Segment | Notes Payable to Banks | Agency Advance Financing Facility (2011) [Member]
Debt Instrument
Debt Instrument, Basis Spread on Variable Rate	1.46%
Weighted Average [Member] | Servicing Segment | Notes Payable to Banks | NSM Advance Receivable Trust Institutional Investors (2013) [Member]
Debt Instrument
Debt Instrument, Basis Spread on Variable Rate	3.26%
Borrowing Capacity in Period Two [Member] | Servicing Segment | Notes Payable, Other | MBS Advance Financing Facility 2012 [Member]
Debt Instrument
Line of Credit Facility, Maximum Borrowing Capacity	50,000,000
Borrowing Capacity in Period Two [Member] | Originations Segment | Notes Payable, Other | R ABS Advance Financing Facility (2012) [Member]
Debt Instrument
Maximum borrowing capacity	400,000,000
Borrowing Capacity in Period Two [Member] | Originations Segment | Notes Payable, Other | Warehouse Facility $1 Billion (2011) [Member]
Debt Instrument
Maximum borrowing capacity	$ 1,500,000,000

XML

Fair Value Measurements Fair Value Measurement - Fair Value Assumption (Details) (Excess Spread Financing)	3 Months Ended	12 Months Ended
	Mar. 31, 2014	Dec. 31, 2013
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	10.50%	10.60%
Assumption for Fair Value of Assets or Liabilities that relate to Transferor's Continuing Involvement, Weighted Average Life	4 years 8 months	4 years 8 months
Assumption for Fair Value of Assets or Liabilities that relate to Transferor's Continuing Involvement, Discount Rate	13.50%	13.90%
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	5.83%	4.00%
Assumption for Fair Value of Assets or Liabilities that relate to Transferor's Continuing Involvement, Weighted Average Life	3 years 2 months	3 years 5 months
Assumption for Fair Value of Assets or Liabilities that relate to Transferor's Continuing Involvement, Discount Rate	9.10%	10.10%
Assumption for Fair Value of Assets or Liabilities that relate to Transferor's Continuing Involvement, Other Key Assumption Rate or Value	0.05	0.05
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	20.20%	17.60%
Assumption for Fair Value of Assets or Liabilities that relate to Transferor's Continuing Involvement, Weighted Average Life	5 years 8 months 12 days	5 years 8 months 12 days
Assumption for Fair Value of Assets or Liabilities that relate to Transferor's Continuing Involvement, Discount Rate	19.00%	20.00%
Assumption for Fair Value of Assets or Liabilities that relate to Transferor's Continuing Involvement, Other Key Assumption Rate or Value	0.364	0.358

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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, 2014	Dec. 31, 2013	Dec. 31, 2012
Mortgage Loans Held for Investment
Accretable Yield Movement Schedule [Roll Forward]
Balance at the beginning of the period	$ 17,362	$ 19,749
Additions	0		0
Accretion	(784)		(3,235)
Reclassifications from (to) nonaccretable discount	401	848	848
Disposals		0	0
Balance at the end of the period	$ 16,979	$ 17,362	$ 19,749

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Indebtedness - Unsecured Notes Maturity Schedule (Details) (Unsecured Senior Notes, USD $)	Mar. 31, 2014
Unsecured Senior Notes
Expected maturities of long-term debt
2013	$ 0
2014	285,000,000
2015	0
2016	0
2017	475,000,000
Thereafter	1,675,000,000
Debt Instrument, Face Amount	$ 2,435,000,000

XML

Fair Value Measurements - Level 3 Reconciliation (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended	12 Months Ended
	Mar. 31, 2014	Dec. 31, 2013
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Mortgage Servicing Rights Liability Resulting from Sale of Servicer Advances, Rights not Accounted for as a Sale	$ 39,737	$ 29,874
Excess Spread Financing
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance	986,410	288,089
Transfers into Level 3	0	0
Transfers out of Level 3	0	0
Total gains or losses included in earnings	(3,369)	73,333
Total gains or losses included in other comprehensive income	0	0
Purchases, issuances, sales and settlements
Purchases	0	0
Issuances	37,859	755,344
Sales	0	0
Settlements	(42,717)	(130,356)
Ending balance	978,183	986,410
Mortgage Servicing Right Liability [Member]
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Total gains or losses included in earnings	(10,788)
Purchases, issuances, sales and settlements
Issuances	20,651	29,874
Mortgage Servicing Rights
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance	2,488,283	635,860
Transfers into Level 3	0	0
Transfers out of Level 3	0	0
Total gains or losses included in earnings	(78,349)	58,458
Total gains or losses included in other comprehensive income	0	0
Purchases, issuance, sales and settlements
Purchases	108,312	1,545,584
Issuances	58,304	248,381
Sales	0	0
Settlements	0	0
Ending balance	$ 2,576,550	$ 2,488,283

XML

Indebtedness Mortgage Servicing Rights Financing (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013
Short-term Debt [Line Items]
Mortgage Servicing Rights Liability Resulting from Sale of Servicer Advances, Rights not Accounted for as a Sale	$ 39,737	$ 29,874

XML

Fair Value Measurements - Measured on a Nonrecurring Basis (Details) (Fair Value, Measurements, Nonrecurring, USD $)	3 Months Ended	12 Months Ended
	Mar. 31, 2014	Dec. 31, 2013
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Gains (Losses) Included in Earnings	$ 600,000	$ (13,316,000)
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	37,734,000	45,632,000
Total assets	37,734,000	45,632,000
Total Fair Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
REO	37,734,000	45,632,000
Total assets	37,734,000	45,632,000
Real Estate Owned
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total Gains (Losses) Included in Earnings	$ 600,000	$ (13,316,000)

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Indebtedness - Legacy Assets (Details) (USD $)	Mar. 31, 2014	Dec. 31, 2013	Nov. 30, 2009
Debt Instrument
Nonrecourse Debt Legacy Assets	$ 2,306,701,000	$ 2,208,881,000
Unpaid principal balance on outstanding notes			222,000,000
Legacy Asset [Member]
Debt Instrument
Nonrecourse Debt Legacy Assets	86,529,000	89,107,000
Nonrecourse Debt-Legacy Assets
Debt Instrument
Debt Instrument, Principal Amount Outstanding	100,600,000	103,600,000
Secured Debt | Nonrecourse Debt-Legacy Assets
Debt Instrument
Interest rate	7.50%
Securities Pledged as Collateral [Member]
Debt Instrument
Unpaid principal balance on outstanding notes	$ 294,500,000	$ 302,000,000

XML

Derivative Financial Instruments - Derivative Instruments (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended	12 Months Ended
	Mar. 31, 2014	Dec. 31, 2013
Derivatives, Fair Value [Line Items]
Margin Deposit Assets	$ 5,049	$ 25,932
Other Assets
Derivatives, Fair Value [Line Items]
Margin Deposit Assets		25,900
Forward Contracts | Designated as Hedging Instrument | Loans Held-for-sale, Mortgages [Member]
Derivatives, Fair Value [Line Items]
Outstanding Notional - Asset	92,972	57,965
Fair Value - Asset	1,481	7
Recorded Gains / (Losses)	1,474	(14)
Forward Contracts | Designated as Hedging Instrument | Derivative Financial Instruments
Derivatives, Fair Value [Line Items]
Outstanding Notional - Liability	1,866,675	1,351,870
Fair Value - Liability	5,180	3,305
Recorded Gains / (Losses)	(1,875)	8,713
Loan Purchase Commitments [Member] | Designated as Hedging Instrument | Derivative Financial Instruments, Assets [Member]
Derivatives, Fair Value [Line Items]
Outstanding Notional - Asset	171,834	197,475
Fair Value - Asset	867	793
Recorded Gains / (Losses)	74	(460)
Loan Purchase Commitments [Member] | Designated as Hedging Instrument | Derivative Financial Instruments
Derivatives, Fair Value [Line Items]
Outstanding Notional - Liability	95,019	204,486
Fair Value - Liability	349	1,689
Recorded Gains / (Losses)	1,340	(1,603)
Interest Rate Lock Commitments | Designated as Hedging Instrument | Derivative Financial Instruments, Assets [Member]
Derivatives, Fair Value [Line Items]
Outstanding Notional - Asset	2,892,348	3,083,131
Fair Value - Asset	85,069	87,128
Recorded Gains / (Losses)	(2,059)	(69,856)
Interest Rate Lock Commitments | Designated as Hedging Instrument | Derivative Financial Instruments
Derivatives, Fair Value [Line Items]
Outstanding Notional - Liability	33,486	260,407
Fair Value - Liability	279	2,698
Recorded Gains / (Losses)	2,419	(1,613)
Forward Mortgage-Backed Securities Trades [Member] | Designated as Hedging Instrument | Derivative Financial Instruments, Assets [Member]
Derivatives, Fair Value [Line Items]
Outstanding Notional - Asset	2,399,461	5,425,663
Fair Value - Asset	6,738	32,266
Recorded Gains / (Losses)	(25,528)	19,084
Interest Rate Swaps and Caps | Designated as Hedging Instrument | Derivative Financial Instruments
Derivatives, Fair Value [Line Items]
Outstanding Notional - Liability		0
Fair Value - Liability		0
Recorded Gains / (Losses)		1,576
Interest Rate Swap | Designated as Hedging Instrument | Derivative Financial Instruments, Assets [Member]
Derivatives, Fair Value [Line Items]
Outstanding Notional - Asset	107,000	167,000
Fair Value - Asset	3,100	3,691
Recorded Gains / (Losses)	2,556	544
Asset Backed Securities | Interest Rate Swap | Designated as Hedging Instrument | Derivative Financial Instruments
Derivatives, Fair Value [Line Items]
Outstanding Notional - Liability	394,341	424,269
Fair Value - Liability	569	834
Recorded Gains / (Losses)	$ 265	$ 1,012

XML

Guarantor Financial Statement Information

3 Months Ended

Mar. 31, 2014

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Guarantor Financial Statement Information

. Guarantor Financial Statement Information

As of March 31, 2014, Nationstar and Nationstar Capital Corporation have issued $2.4 billion aggregate principal amount of unsecured senior notes which mature on various dates through June 1, 2022. 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. Nationstar Inc. and its two direct wholly-owned subsidiaries are 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, 2014 (IN THOUSANDS)
Assets	Nationstar Inc.		Issuer		Guarantor (Subsidiaries)		Non-Guarantor (Subsidiaries)			Eliminations			Consolidated
Cash and cash equivalents	$	—	$	381,635	$	1,714	$	20,724		$	—		$	404,073
Restricted cash	—		276,320		3		195,312			—			471,635
Accounts receivable	—		4,008,370		2,366		46,741			—			4,057,477
Mortgage loans held for sale	—		1,740,951		—		175			—			1,741,126
Mortgage loans held for investment, principally subject to nonrecourse debt–Legacy Asset, net	—		1,778		—		202,614			—			204,392
Reverse mortgage interests	—		1,620,879		—		—			—			1,620,879
Mortgage servicing rights	—		2,590,780		—		—			—			2,590,780
Investment in subsidiaries	1,009,738		204,241		—		—			(1,213,979		)	—
Property and equipment, net	—		114,832		877		3,597			—			119,306
Derivative financial instruments	—		92,674		—		3,100			—			95,774
Other assets	2,089		618,482		347,849		1,848,978			(2,490,277		)	327,121
Total assets	$	1,011,827	$	11,650,942	$	352,809	$	2,321,241		$	(3,704,256	)	$	11,632,563
Liabilities and stockholders’ equity
Notes payable	$	—	$	2,502,831	$	—	$	2,089,167		$	—		$	4,591,998
Unsecured senior notes	—		2,444,020		—		—			—			2,444,020
Payables and accrued liabilities	—		1,203,396		2,994		14,503			(31,463		)	1,189,430
Payables to affiliates	—		2,182,198		116,495		160,121			(2,458,814		)	—
Derivative financial instruments	—		6,377		—		—			—			6,377
Mortgage servicing liabilities	—		82,210		—		—			—			82,210
Other nonrecourse debt	—		2,220,172		—		86,529			—			2,306,701
Total liabilities	—		10,641,204		119,489		2,350,320			(2,490,277		)	10,620,736
Total equity	1,011,827		1,009,738		233,320		(29,079		)	(1,213,979		)	1,011,827
Total liabilities and equity	$	1,011,827	$	11,650,942	$	352,809	$	2,321,241		$	(3,704,256	)	$	11,632,563

NATIONSTAR MORTGAGE HOLDINGS INC. CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) FOR THE THREE MONTHS ENDED MARCH 31, 2014 (IN THOUSANDS)
	Nationstar Inc.		Issuer			Guarantor (Subsidiaries)		Non-Guarantor (Subsidiaries)			Eliminations			Consolidated
Revenues:
Servicing fee income	$	—	$	254,609		$	7	$	—		$	(14,452	)	$	240,164
Other fee income	—		17,320			27,421		56,806			—			101,547
Total fee income	—		271,929			27,428		56,806			(14,452		)	341,711
Gain on mortgage loans held for sale	—		113,889			—		(27		)	14,074			127,936
Total revenues	—		385,818			27,428		56,779			(378		)	469,647
Expenses and impairments:
Salaries, wages and benefits	—		143,358			1,696		11,541			—			156,595
General and administrative	—		128,927			796		26,477			—			156,200
Loss on foreclosed real estate and other	—		(2,185		)	—		2,785			—			600
Occupancy	—		6,983			95		660			—			7,738
Total expenses and impairments	—		277,083			2,587		41,463			—			321,133
Other income (expense):
Interest income	—		39,710			—		3,855			378			43,943
Interest expense	—		(134,478		)	—		(22,122		)	—			(156,600		)
Gain/(Loss) on interest rate swaps and caps	—		265			—		2,556			—			2,821
Gain/(loss) from subsidiaries	39,037		24,446			—		—			(63,483		)	—
Total other income (expense)	39,037		(70,057		)	—		(15,711		)	(63,105		)	(109,836		)
Income before taxes	39,037		38,678			24,841		(395		)	(63,483		)	38,678
Income tax expense/(benefit)	15,001					—		—			—			15,001
Net income/(loss)	24,036		38,678			24,841		(395		)	(63,483		)	23,677
Less: Net loss attributable to noncontrolling interests	—		(359		)	—		—			—			(359		)
Net income/(loss) excluding noncontrolling interests	$	24,036	$	39,037		$	24,841	$	(395	)	$	(63,483	)	$	24,036

NATIONSTAR MORTGAGE HOLDINGS INC. CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE THREE MONTHS ENDED MARCH 31, 2014 (IN THOUSANDS)
	Nationstar Inc.			Issuer			Guarantor (Subsidiaries)			Non-Guarantor (Subsidiaries)			Eliminations			Consolidated
Operating activities:
Net income/(loss)	$	24,036		$	39,037		$	24,841		$	(395	)	$	(63,483	)	$	24,036
Adjustments to reconcile net income/(loss) to net cash provided by/(used in) operating activities:
(Gain)/loss from subsidiaries	(39,037		)	(24,446		)	—			—			63,483			—
Share-based compensation	—			2,809			—			—			—			2,809
Loss on foreclosed real estate and other	—			(2,185		)	—			2,785			—			600
Loss on derivatives including ineffectiveness on interest rate swaps and caps	—			(264		)	—			(2,557		)	—			(2,821		)
Fair value changes in excess spread financing	—			(3,369		)	—			—			—			(3,369		)
Depreciation and amortization	—			8,078			43			671			—			8,792
Fair value changes and amortization/accretion of mortgage servicing rights	—			78,687			—			—			—			78,687
Amortization of mortgage servicing rights liability	—			(10,788		)	—			—			—			(10,788		)
Amortization/(accretion) of premiums/(discounts)	—			10,465			—			(506		)	—			9,959
Gain on mortgage loans held for sale	—			(113,889		)	—			27			(14,074		)	(127,936		)
Mortgage loans originated and purchased, net of fees	—			(5,402,512		)	—			(350		)	—			(5,402,862		)
Proceeds on sale of and payments of mortgage available for sale	—			6,343,251			—			5,388			12,669			6,361,308
Net tax effect of stock grants issued	—			(2,189		)	—			—			—			(2,189		)
Cash settlement on derivative financial instruments	—			—			—			—			—			—
Changes in assets and liabilities:
Accounts receivable, including servicing advances, net	—			(4,030,462		)	216			4,018,139			—			(12,107		)
Reverse mortgage funded advances	—			(197,529		)	—			—			—			(197,529		)
Other assets	19,784			2,532,050			(24,272		)	(2,516,153		)	1,405			12,814
Payables and accrued liabilities	—			(120,082		)	(2,956		)	897			—			(122,141		)
Net cash provided by/(used in) operating activities	4,783			(893,338		)	(2,128		)	1,507,946			—			617,263

	Nationstar Inc.			Issuer			Guarantor (Subsidiaries)				Non-Guarantor (Subsidiaries)			Eliminations		Consolidated
Investing activities:
Property and equipment additions, net of disposals	—			(7,145		)	(65		)		(1,703		)	—		(8,913		)
Purchases of reverse mortgage rights and interests	—			—			—				—			—		—
Deposit on / purchase of forward mortgage servicing rights, net of liabilities incurred	—			(93,092		)	—				—			—		(93,092		)
Loan repurchases from Ginnie Mae	—			—			—				—			—		—
Proceeds from sales of REO	—			23,498			—				—			—		23,498
Proceeds from sale of servicer advances	—			182,871			—			—	—			—		182,871
Acquisition of Greenlight Financial Services and other businesses, net	—			—			—				—			—		—
Net cash used in investing activities	—			106,132			(65		)		(1,703		)	—		104,364
Financing activities:
Issuance of unsecured senior notes	—			—			—				—			—		—
Transfers (to)/from restricted cash, net	—			18,914			—				85,311			—		104,225
Issuance of participating interest financing in reverse mortgage interests	—			103,324			—				—			—		103,324
Issuance of excess spread financing	—			37,859			—				—			—		37,859
Increase/(decrease) in notes payable, net	—			608,403			—				(1,583,559		)	—		(975,156		)
Proceeds from mortgage servicing rights financing	—			20,651			—				—			—		20,651
Repayment of nonrecourse debt–Legacy assets	—			—			—				(2,998		)	—		(2,998		)
Repayment of excess spread financing	—			(42,717		)	—				—			—		(42,717		)
Debt financing costs	—			(2,050		)	—				—			—		(2,050		)
Net tax benefit for stock grants issued	—			2,189			—				—			—		2,189
Contribution to joint venture for noncontrolling interest	—			—			—				—			—		—
Redemption of shares for stock vesting	(4,783		)	—			—				—			—		(4,783		)
Net cash provided by/(used in) financing activities	(4,783		)	746,573			—				(1,501,246		)	—		(759,456		)
Net increase/(decrease) in cash	—			(40,633		)	(2,193		)		4,997			—		(37,829		)
Cash and cash equivalents at beginning of period	—			422,268			3,907				15,727			—		441,902
Cash and cash equivalents at end of period	$	—		$	381,635		$	1,714			$	20,724		$	—	$	404,073

NATIONSTAR MORTGAGE HOLDINGS INC. CONSOLIDATING BALANCE SHEET DECEMBER 31, 2013 (IN THOUSANDS)
	Nationstar Inc.		Issuer (Parent)		Guarantor (Subsidiaries)		Non-Guarantor (Subsidiaries)			Eliminations			Consolidated
Assets
Cash and cash equivalents	$	—	$	422,268	$	3,907	$	15,727		$	—		$	441,902
Restricted cash	—		312,120		3		280,624			—			592,747
Accounts receivable	—		1,569,021		2,582		4,064,879			—			5,636,482
Mortgage loans held for sale	—		2,603,380		—		—			—			2,603,380
Mortgage loans held for investment, principally subject to nonrecourse debt–Legacy Asset, net	—		2,786		—		208,264			—			211,050
Reverse mortgage interests	—		1,434,506		—		—			—			1,434,506
Mortgage servicing rights	—		2,503,162		—		—			—			2,503,162
Investment in subsidiaries	968,027		181,545		—		—			(1,149,572		)	—
Property and equipment, net	—		115,765		855		2,565			—			119,185
Derivative financial instruments	—		120,187		—		3,691			—			123,878
Other assets	21,872		4,683,749		323,346		3,373,048			(8,041,618		)	360,397
Total assets	$	989,899	$	13,948,489	$	330,693	$	7,948,798		$	(9,191,190	)	$	14,026,689
Liabilities and members’ equity
Notes payable	$	—	$	3,311,625	$	—	$	3,672,726		$	—		$	6,984,351
Unsecured senior notes	—		2,444,062		—		—			—			2,444,062
Payables and accrued liabilities	—		1,319,172		5,950		14,791			(31,463		)	1,308,450
Payables to affiliates	—		3,694,782		116,349		4,199,023			(8,010,154		)	—
Derivative financial instruments	—		8,526		—		—			—			8,526
Mortgage servicing liabilities	—		82,521		—		—			—			82,521
Other nonrecourse debt	—		2,119,774		—		89,107			—			2,208,881
Total liabilities	—		12,980,462		122,299		7,975,647			(8,041,617		)	13,036,791
Total equity	989,899		968,027		208,394		(26,849		)	(1,149,573		)	989,898
Total liabilities and equity	$	989,899	$	13,948,489	$	330,693	$	7,948,798		$	(9,191,190	)	$	14,026,689

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
Loss on foreclosed real estate and other	—		296			—		1,711			—			2,007
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 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 benefit	—		38,377			—		—			—			38,377
Net 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 (Parent)			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
Loss on foreclosed real estate and other	—			296			—			1,711			—			2,007
Loss on derivatives including ineffectiveness on interest rate swaps and caps	—			(263		)	—			(1,005		)	—			(1,268		)
Fair value changes in excess spread financing	—			23,891			—			—			—			23,891
Depreciation and amortization	—			3,850			51			—			—			3,901
Fair value changes and amortization/accretion of mortgage servicing rights	—			9,384			—			—			—			9,384
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 available for sale	—			3,682,566			—			3,309			8,984			3,694,859
Net tax effect of stock grants	(2,660		)	—			—			—			—			(2,660		)
Cash settlement on derivatives financial instruments	—			—			—			(129		)	—			(129		)
Changes in assets and liabilities:
Accounts receivable, including servicer advances, net	—			282,727			(5,840		)	(195,793		)	—			81,094
Reverse mortgage funded advances	—			(178,181		)	—			—			—			(178,181		)
Other assets	3,894			(304,127		)	(3,338		)	315,534			(5,477		)	6,486
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			(495,844		)	19,639			112,028			—			(360,283		)

	Nationstar Inc.			Issuer (Parent)			Guarantor (Subsidiaries)			Non-Guarantor (Subsidiaries)			Eliminations		Consolidated
Investing activities:
Property and equipment additions, net of disposals	—			(5,346		)	(521		)	—			—		(5,867		)
Purchase of reverse mortgage rights and interests	—			(50,198		)	—			—			—		(50,198		)
Deposit on/purchase of forward mortgage servicing rights, net of liabilities incurred	—			(266,625		)	—			—			—		(266,625		)
Loan repurchases from Ginnie Mae	—			(8,815		)	—			—			—		(8,815		)
Acquisition of Greenlight Financial Services and other businesses, net	—			(12,500		)	—			—			—		(12,500		)
Proceeds from sales of REO	—			4,157			—			—			—		4,157
Net cash provided by/(used in) investing activities	—			(339,327		)	(521		)	—			—		(339,848		)
Financing activities:
Issuance of unsecured senior notes	—			599,269			—			—			—		599,269
Transfers (to)/from restricted cash	—			(49,111		)	(18,766		)	100,600			—		32,723
Issuance of participating interest financing in reverse mortgage interests	—			166,646			—			—			—		166,646
Issuance of excess spread financing	—			192,730			—			—			—		192,730
Increase/(decrease) in notes payable	—			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 member to noncontrolling interests	—			4,990			—			—			—		4,990
Redemption of shares for stock vesting	(6,554		)	—			—			—			—		(6,554		)
Debt financing costs	—			(9,750		)	—			—			—		(9,750		)
Net cash provided by financing activities	(3,894		)	892,209			(18,766		)	(102,028		)	—		767,521
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

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Schedule of Gain (Loss) on Securitization Arrangement of Financial Assets Accounted for as a sale (Details) (Mortgage-backed Securities, Issued by Private Enterprises [Member], USD $) In Thousands, unless otherwise specified	Dec. 31, 2013
Mortgage-backed Securities, Issued by Private Enterprises [Member]
Fair Value Assumption, Date of Securitization or Asset-backed Financing Arrangement, Transferor's Continuing Involvement, Servicing Assets or Liabilities [Line Items]
Carrying Value of Loans Sold	$ 158,204

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Nature of Business, Basis of Presentation and Material Transaction - Material Transaction (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Dec. 31, 2013	Mar. 31, 2014 Mortgage Servicing Right [Member]	Dec. 31, 2013 Mortgage Servicing Right [Member]	Dec. 31, 2012 Mortgage Servicing Right [Member]
Mortgaging Servicing Rights
Payments to Acquire Mortgage Servicing Rights (MSR)	$ 93,092	$ 266,625
Mortgage servicing rights - fair value	2,576,550		2,488,283	2,576,550	2,488,283	635,860
Accounts Receivable, Net	4,057,477		5,636,482
Principal Amount Outstanding on Loans Managed and Securitized or Asset-backed Financing Arrangement	2,900,000			326,413,078	322,814,139
Service Advances, Net	3,748,599		5,217,769
Issuance of excess spread financing	$ 37,859	$ 192,730

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Indebtedness - Unsecured Senior Notes (Details) (USD $)	Mar. 31, 2014	Dec. 31, 2013
Debt Instrument
Unsecured Debt	$ 2,444,020,000	$ 2,444,062,000
Unsecured Senior Notes
Debt Instrument
Debt Instrument, Face Amount	2,435,000,000
Unsecured Senior Notes | Unsecured Senior Notes 10.875% Due April 2015
Debt Instrument
Unsecured Debt	283,523,000	283,153,000
Debt Instrument, Face Amount	285,000,000
Interest rate	10.875%
Unsecured Senior Notes | Unsecured Senior Notes 9.625% Due May 2019
Debt Instrument
Unsecured Debt	379,159,000	379,360,000
Debt Instrument, Face Amount	375,000,000
Interest rate	9.625%
Unsecured Senior Notes | Unsecured Senior Notes Seven Point Eight Seven Five Percent Due Oct 202 [Member]
Debt Instrument
Unsecured Debt	400,618,000	400,634,000
Debt Instrument, Face Amount	400,000,000
Interest rate	7.875%
Unsecured Senior Notes | Unsecured Senior Notes Six Point Five Percent Due July 2021 [Member]
Debt Instrument
Unsecured Debt	605,720,000	605,915,000
Debt Instrument, Face Amount	600,000,000
Interest rate	6.50%
Unsecured Senior Notes | Unsecured Senior Notes Six Point Five Percent Due July 2022 [Member]
Debt Instrument
Unsecured Debt	300,000,000	300,000,000
Debt Instrument, Face Amount	300,000,000
Interest rate	6.50%
Unsecured Senior Notes | Unsecured Senior Notes Six Point Five Percent Due August 2018 [Member]
Debt Instrument
Unsecured Debt	475,000,000	475,000,000
Debt Instrument, Face Amount	$ 475,000,000
Interest rate		6.50%

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Business Segment Reporting - Financial Information (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2014 segment	Mar. 31, 2013	Dec. 31, 2013
Segment Reporting Information [Line Items]
Loss on foreclosed real estate	$ 600	$ 2,007
General and Administrative Expense, Excluding Labor and Related Expense	156,200	125,642
Number of operating segments	2
Revenues:
Servicing fee income	240,164	197,596
Other fee income	101,547	44,879
Total fee income	341,711	242,475
Gain/(loss) on mortgage loans held for sale	127,936	188,587
Total revenues	469,647	431,062
Total expenses and impairments	321,133	268,571
Other income (expense):
Interest income	43,943	29,608
Interest expense	(156,600)	(92,374)
Gain / (Loss) on interest rate swaps and caps	2,821	1,268
Total other income (expense)	(109,836)	(61,498)
Income before taxes	38,678	100,993
Depreciation and amortization	8,792	3,901
Assets	11,632,563	8,885,565	14,026,689
Operating Segments
Revenues:
Servicing fee income	254,347	206,460
Other fee income	101,594	44,961
Total fee income	355,941	251,421
Gain/(loss) on mortgage loans held for sale	114,505	179,695
Total revenues	470,446	431,116
Total expenses and impairments	314,283	259,511
Other income (expense):
Interest income	40,185	24,359
Interest expense	(151,229)	88,080
Gain / (Loss) on interest rate swaps and caps	2,556	795
Total other income (expense)	(108,488)	(62,926)
Income before taxes	47,675	108,679
Depreciation and amortization	7,555	3,122
Assets	11,007,608	8,533,243
Servicing Segment
Revenues:
Servicing fee income	254,347	206,460
Other fee income	86,802	39,065
Total fee income	341,149	245,525
Gain/(loss) on mortgage loans held for sale	(1,695)	(98)
Total revenues	339,454	245,427
Total expenses and impairments	205,963	147,609
Other income (expense):
Interest income	18,664	13,380
Interest expense	(114,626)	71,321
Gain / (Loss) on interest rate swaps and caps	2,556	795
Total other income (expense)	(93,406)	(57,146)
Income before taxes	40,085	40,672
Depreciation and amortization	4,588	2,306
Assets	9,015,131	6,378,129
Originations Segment
Revenues:
Servicing fee income	0	0
Other fee income	14,792	5,896
Total fee income	14,792	5,896
Gain/(loss) on mortgage loans held for sale	116,200	179,793
Total revenues	130,992	185,689
Total expenses and impairments	108,320	111,902
Other income (expense):
Interest income	21,521	10,979
Interest expense	(36,603)	16,759
Gain / (Loss) on interest rate swaps and caps	0	0
Total other income (expense)	(15,082)	(5,780)
Income before taxes	7,590	68,007
Depreciation and amortization	2,967	816
Assets	1,992,477	2,155,114
Legacy Portfolio and Other
Revenues:
Servicing fee income	298	555
Other fee income	(47)	(82)
Total fee income	251	473
Gain/(loss) on mortgage loans held for sale	(672)	(92)
Total revenues	(421)	381
Total expenses and impairments	6,850	9,060
Other income (expense):
Interest income	3,380	4,814
Interest expense	(5,371)	4,294
Gain / (Loss) on interest rate swaps and caps	265	473
Total other income (expense)	(1,726)	993
Income before taxes	(8,997)	(7,686)
Depreciation and amortization	1,237	779
Assets	624,955	352,322
Eliminations
Revenues:
Servicing fee income	(14,481)	(9,419)
Other fee income	0	0
Total fee income	(14,481)	(9,419)
Gain/(loss) on mortgage loans held for sale	14,103	8,984
Total revenues	(378)	(435)
Total expenses and impairments	0	0
Other income (expense):
Interest income	378	435
Interest expense	0	0
Gain / (Loss) on interest rate swaps and caps	0	0
Total other income (expense)	378	435
Income before taxes	0	0
Depreciation and amortization	0	0
Assets	$ 0	$ 0

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Indebtedness (Tables)

3 Months Ended

Mar. 31, 2014

Debt Disclosure [Abstract]

Schedule of Unsecured Senior Notes [Table Text Block]

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

	March 31, 2014		December 31, 2013
$285 million face value, 10.875% interest rate payable semi-annually, due April 2015	$	283,523	$	283,153
$475 million face value, 6.500% interest rate payable semi-annually, due August 2018	475,000		475,000
$375 million face value, 9.625% interest rate payable semi-annually, due May 2019	379,159		379,360
$400 million face value, 7.875% interest rate payable semi-annually, due October 2020	400,618		400,634
$600 million face value, 6.500% interest rate payable semi-annually, due July 2021	605,720		605,915
$300 million face value, 6.500% interest rate payable semi-annually, due June 2022	300,000		300,000
Total	$	2,444,020	$	2,444,062

Schedule of Notes Payable

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

	March 31, 2014				December 31, 2013
	Outstanding		Collateral Pledged		Outstanding		Collateral Pledged
Servicing Segment Notes Payable
MBS advance financing facility	$	524,742	$	606,833	$	560,814	$	651,953
Securities repurchase facility (2011)	34,196		55,603		35,546		55,603
Nationstar agency advance financing facility	775,477		837,790		851,957		918,574
Reverse participations financing facility	58,245		75,784		102,031		124,536
MBS advance financing facility (2012)	50,000		136,378		179,306		220,833
Nationstar Mortgage Advance Receivable Trust	685,109		747,067		1,240,940		1,347,410
Nationstar Servicer Advance Receivables Trust 2013-BA	628,582		709,165		1,579,830		1,764,296
Originations Segment Notes Payable
$1.50 billion warehouse facility	727,778		793,102		797,281		891,648
$750 million warehouse facility	314,830		327,364		639,378		673,599
$700 million warehouse facility	119,991		122,437		111,980		115,629
$600 million warehouse facility	300,395		307,170		214,570		224,162
$400 million warehouse facility	367,330		386,871		447,926		477,980
$300 million warehouse facility	55		58		159,435		166,482
$200 million warehouse facility	5,268		7,786		63,357		93,098
Total notes payable	$	4,591,998	$	5,113,408	$	6,984,351	$	7,725,803

Schedule of Maturities of Long-term Debt

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

Year	Amount
2014	$	—
2015	285,000
2016	—
2017	—
2018	475,000
Thereafter	1,675,000
Total	$	2,435,000

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Accounts Receivable (Details) (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Mar. 07, 2014	Feb. 28, 2014	Jan. 30, 2014	Dec. 31, 2013	Sep. 30, 2013
Receivables [Abstract]
Servicer Advances sold to unaffiliated third party	$ 1,600,000,000		$ 300,000,000	$ 800,000,000	$ 300,000,000	$ 2,700,000,000
Service Advances, Discount	44,500,000					62,200,000	60,100,000
Accretion of Service Advances Discount	3,800,000	6,100,000
Servicer advances, net of purchase discount	3,748,599,000					5,217,769,000
Accrued servicing fees	46,078,000					57,082,000
Receivables from trusts	79,395,000					105,917,000
Reverse mortgage - other	141,628,000					93,494,000
Accrued interest	1,911,000					6,970,000
Other	39,866,000					155,250,000
Total accounts receivable	4,057,477,000					5,636,482,000
Eliminated Servicer Advance, Discount due to advance sale	$ 20,700,000					$ 28,100,000

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Other Assets - Others Assets (Details) (USD $)	0 Months Ended
	Jun. 01, 2013	Mar. 31, 2014	Dec. 31, 2013	May 31, 2013
Other Assets [Line Items]
Business Acquisition, Cost of Entity Acquired				$ 75,700,000
Other Assets
Derivative Assets		95,774,000	123,878,000
Loans subject to repurchase right from Ginnie Mae		134,134,000	120,736,000
Deferred financing costs		66,035,000	73,030,000
Goodwill		38,820,000	38,820,000
Real estate owned (REO), net		37,734,000	45,632,000
Intangible Assets, Net (Excluding Goodwill)		21,180,000	21,737,000
Due from Affiliates		5,306,000	8,861,000
Prepaid expenses		16,196,000	21,993,000
Margin call deposits		5,049,000	25,932,000
Other		2,667,000	3,656,000
Total other assets		327,121,000	360,397,000
Business Acquisition, Cost of Acquired Entity, Cash Paid	$ 65,700,000

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Mortgage Loans Held for Sale and Investment Oo-Investor Percent Participation in Acquired Reverse Loans (Details)	Feb. 28, 2013
Acquired Reverse Mortgages [Abstract]
Percentage of aquired reverse loans, sold to co-investor	70.00%

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Variable Interest Entities and Securitizations - Assets and Liabilities of Consolidated VIEs (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items]
Reverse Mortgage Interest, Unpaid Principal Balance, Securitized	$ 1,135,654	$ 1,039,645
Participating interest financing	1,202,252	1,080,718
Residential Mortgage
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items]
Assets	2,696,443	4,517,961
Liabilities	2,178,470	3,766,076
Residential Mortgage | Restricted Cash
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items]
Assets	192,934	272,188
Residential Mortgage | Reverse Mortgages
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items]
Assets	0	0
Residential Mortgage | Accounts Receivable
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items]
Assets	2,295,144	4,031,444
Residential Mortgage | Mortgage Loans Held for Investment
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items]
Assets	202,614	208,263
Residential Mortgage | Derivative Financial Instruments, Assets [Member]
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items]
Assets	3,100
Residential Mortgage | Real Estate Owned
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items]
Assets	2,651	2,375
Residential Mortgage | Notes Payable
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items]
Liabilities	2,773	3,672,726
Residential Mortgage | Payables and Accrued Liabilities
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items]
Liabilities	2,089,168	4,242
Residential Mortgage | Participating Mortgages [Member]
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items]
Liabilities	0	0
Residential Mortgage | Nonrecourse Debt-Legacy Assets
Assets and Associated Liabilities of Transfers Accounted for as Secured Borrowings [Line Items]
Liabilities	$ 86,529	$ 89,108

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Variable Interest Entities and Securitizations

3 Months Ended

Mar. 31, 2014

Variable Interest Entities and Securitizations [Abstract]

Variable Interest Entities and Securitizations

Variable Interest Entities and Securitizations

Nationstar or its subsidiaries have been a transferor in connection with a number of securitizations and asset-backed financing arrangements. Nationstar has continuing involvement with the financial assets of the securitizations and the asset-backed financing arrangements. Nationstar has aggregated these securitizations and asset-backed financing arrangements into two groups: 1) securitizations of residential mortgage loans accounted for as sales and 2) financings of advances on loans serviced for others 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. The beneficial interests held consist of both

subordinate and residual securities that were retained at the time of securitization. These securitizations generally do not result

in consolidation of the VIE as the beneficial interests that we hold in the unconsolidated securitization trusts have no value and

no potential for significant cash flows in the future. In addition, at March 31, 2014 and December 31, 2013, we had no other significant assets in our consolidated financial statements related to these trusts. We have no obligation to provide financial support to unconsolidated securitization trusts and have provided no such support. The creditors of the trusts can look only to the assets of the trusts themselves for satisfaction of the debt issued by the trusts and have no recourse against the assets of Nationstar. The general creditors of Nationstar have no claim on the assets of the trusts. Our exposure to loss as a result of our continuing involvement with the trusts is limited to the carrying values, if any, of our investments in the residual and subordinate securities of the trusts, the MSRs that are related to the trusts and the advances to the trusts. We consider the probability of loss arising from our advances to be remote because of their position ahead of most of the other liabilities of the trusts. See Note 6 and Note 8 for additional information regarding advances and MSRs.

Nationstar 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.

Advances on loans serviced for others result from our transfers of residential loan servicing advances to SPEs in exchange for cash. We consolidate these SPEs because the transfers do not qualify for sales accounting treatment or because Nationstar is the primary beneficiary of the VIE.

These VIEs issue debt supported by collections on the transferred advances. We made these transfers under the terms of our

advance facility agreements. We classify the transferred advances on our consolidated balance sheets as accounts receivable

and the related liabilities as notes payable. The SPEs use collections of the pledged advances to repay principal and interest and

to pay the expenses of the entity. Holders of the debt issued by these entities can look only to the assets of the entities

themselves for satisfaction of the debt and have no recourse against Nationstar.

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, 2014 and December 31, 2013 is presented in the following tables (in thousands):

	March 31, 2014				December 31, 2013
	Transfers Accounted for as Secured Borrowings		Reverse Secured Borrowings		Transfers Accounted for as Secured Borrowings		Reverse Secured Borrowings
ASSETS
Restricted cash	$	192,934	$	—	$	272,188	$	—
Reverse mortgage interests	—		1,135,654		—		1,039,645
Accounts receivable	2,295,144		—		4,031,444		—
Mortgage loans held for investment, principally subject to nonrecourse debt	202,614		—		208,263		—
Derivative financial instruments	3,100		—		3,691		—
Other assets	2,651		—		2,375		—
Total Assets	$	2,696,443	$	1,135,654	$	4,517,961	$	1,039,645
LIABILITIES
Notes payable	$	2,773	$	—	$	3,672,726	$	—
Payables and accrued liabilities	2,089,168		—		4,242		—
Nonrecourse debt–Legacy Assets	86,529		—		89,108		—
Participating interest financing	—		1,202,252		—		1,080,718
Total Liabilities	$	2,178,470	$	1,202,252	$	3,766,076	$	1,080,718

When Nationstar sells mortgage loans in securitization transactions that are structured as sales under ASC 820, it may retain one or more bond classes and servicing rights in the securitization. Gains and losses on the assets transferred are recognized based on the carrying amount of the financial assets involved in the transfer, allocated between the assets transferred and the retained interests based on their relative fair value at the date of transfer, other than MSRs. Retained MSRs are recorded at their fair value on the transfer date.

Nationstar did not sell any mortgage loans in securitization transactions that were structured as sales for the three months ended March 31, 2014 or March 31, 2013.

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

	March 31, 2014		December 31, 2013
Total collateral balances	$	3,708,047	$	3,831,473
Total certificate balances	3,719,476		3,843,694
Total mortgage servicing rights at fair value	26,945		30,074

Nationstar has not retained any variable interests in the unconsolidated securitization trusts that were outstanding as of March 31, 2014 or December 31, 2013, 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):

Principal Amount of Loans 60 Days or More Past Due	March 31, 2014		March 31, 2013
Unconsolidated securitization trusts	$	1,033,703	$	1,179,325
	For the three months ended March 31,
Credit Losses	2014		2013
Unconsolidated securitization trusts	$	66,542	$	64,858

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, 2014				March 31, 2013
	Servicing Fees Received		Loan Repurchases		Servicing Fees Received		Loan Repurchases
Unconsolidated securitization trusts	$	7,778	$	—	$	6,791	$	—

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Mortgage Servicing Rights - Fair Value Assumptions (Details) (Mortgage Servicing Rights)	3 Months Ended	12 Months Ended
	Mar. 31, 2014	Dec. 31, 2013
Credit Sensitive
Assumption for Fair Value of Mortgage Servicing Rights
Discount rate	13.69%	14.17%
Total prepayment speeds	20.65%	20.34%
Servicing Assets and Servicing Liabilities at Fair Value, Assumptions Used to Estimate Fair Value, Expected weighted-average life	4 years 7 months 20 days	4 years 7 months 18 days
Expected weighted-average life	4 years 7 months 20 days	4 years 7 months 18 days
Credit losses	20.22%	22.87%
Interest Rate Sensitive
Assumption for Fair Value of Mortgage Servicing Rights
Discount rate	9.54%	10.50%
Total prepayment speeds	10.52%	8.97%
Servicing Assets and Servicing Liabilities at Fair Value, Assumptions Used to Estimate Fair Value, Expected weighted-average life	7 years 22 days	7 years 10 months 17 days
Expected weighted-average life	7 years 22 days	7 years 10 months 17 days
Credit losses	8.05%	9.12%

XML

Nature of Business, Basis of Presentation and Material Transaction Nature of Business, Basis of Presentation and Material Transaction (Details) (USD $)	Mar. 31, 2014	Dec. 31, 2013
Schedule of Capitalization, Equity [Line Items]
Common Stock, Par or Stated Value Per Share	$ 0.01	$ 0.01

XML

Acquisitions Business Combinations (Tables)

3 Months Ended

Mar. 31, 2014

Business Acquisition [Line Items]

Schedule of Business Acquisitions, by Acquisition [Table Text Block]

	May 31, 2013
Intangible assets	$	18,530
Derivative financial instruments	18,101
Equipment	3,561
Prepaid expenses and other assets	700
Payables and accrued liabilities	(589		)
Net assets acquired	40,303
Estimated purchase price	75,700
Goodwill	$	35,397

XML

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

3 Months Ended

Mar. 31, 2014

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 February 27, 2014.

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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, 2014	Mar. 31, 2013	Dec. 31, 2013
Revenues:
Servicing fee income	$ 240,164	$ 197,596
Other fee income	101,547	44,879
Total fee income	341,711	242,475
Gain on mortgage loans held for sale	127,936	188,587
Total revenues	469,647	431,062
Expenses and impairments:
Salaries, wages and benefits	156,595	134,987
General and Administrative Expense, Excluding Labor and Related Expense	156,200	125,642
General and administrative	156,200	125,642
Loss on foreclosed real estate	600	2,007
Occupancy	(7,738)	(5,935)
Total expenses and impairments	321,133	268,571
Other income (expense):
Interest income	43,943	29,608
Interest expense	(156,600)	(92,374)
Gain / (Loss) on interest rate swaps and caps	2,821	1,268
Income before taxes	38,678	100,993
Income tax expense	(15,001)	(38,377)
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	23,677	62,616
Intercompany Gains (Losses)	0	0
Total other income (expense)	(109,836)	(61,498)
Net income	24,036	62,616	217,054
Net Income (Loss) Attributable to Noncontrolling Interest	(359)	0
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax	(1,963)
Comprehensive Income (Loss), Net of Tax, Attributable to Parent	22,073	62,616
Issuer
Revenues:
Servicing fee income		207,015
Other fee income		6,234
Total fee income		213,249
Gain on mortgage loans held for sale	113,889	179,603
Total revenues		392,852
Expenses and impairments:
Salaries, wages and benefits		128,588
General and administrative		116,403
Loss on foreclosed real estate	(2,185)	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)	24,446	3,133
Total other income (expense)		(40,788)
Net income	39,037	62,616
Issuer
Revenues:
Servicing fee income	254,609
Other fee income	17,320
Total fee income	271,929
Gain on mortgage loans held for sale	113,889
Total revenues	385,818
Expenses and impairments:
Salaries, wages and benefits	143,358
General and administrative	128,927
Loss on foreclosed real estate	(2,185)
Occupancy	(6,983)
Total expenses and impairments	277,083
Other income (expense):
Interest income	39,710
Interest expense	(134,478)
Gain / (Loss) on interest rate swaps and caps	265
Income before taxes	38,678
Income tax expense
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	38,678
Intercompany Gains (Losses)	24,446
Total other income (expense)	(70,057)
Net income	39,037
Net Income (Loss) Attributable to Noncontrolling Interest	(359)
Guarantor (Subsidiaries)
Revenues:
Servicing fee income	7	0
Other fee income	27,421	38,517
Total fee income	27,428	38,517
Gain on mortgage loans held for sale	0	0
Total revenues	27,428	38,517
Expenses and impairments:
Salaries, wages and benefits	1,696	6,399
General and administrative	796	9,239
Loss on foreclosed real estate	0	0
Occupancy	(95)	(151)
Total expenses and impairments	2,587	15,789
Other income (expense):
Interest income	0	0
Interest expense	0	0
Gain / (Loss) on interest rate swaps and caps	0	0
Income before taxes	24,841	22,728
Income tax expense	0	0
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	24,841
Intercompany Gains (Losses)	0	0
Total other income (expense)	0	0
Net income	24,841	22,728
Non-Guarantor (Subsidiaries)
Revenues:
Servicing fee income	0	0
Other fee income	56,806	128
Total fee income	56,806	128
Gain on mortgage loans held for sale	(27)	0
Total revenues	56,779	128
Expenses and impairments:
Salaries, wages and benefits	11,541	0
General and administrative	26,477	0
Loss on foreclosed real estate	2,785	1,711
Occupancy	(660)	0
Total expenses and impairments	41,463	1,711
Other income (expense):
Interest income	3,855	3,749
Interest expense	(22,122)	(22,766)
Gain / (Loss) on interest rate swaps and caps	2,556	1,005
Income before taxes	(395)	(19,595)
Income tax expense	0	0
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	(395)
Intercompany Gains (Losses)	0	0
Total other income (expense)	(15,711)	(18,012)
Net income	(395)	(19,595)
Eliminations
Revenues:
Servicing fee income	(14,452)	(9,419)
Other fee income	0	0
Total fee income	(14,452)	(9,419)
Gain on mortgage loans held for sale	14,074	8,984
Total revenues	(378)	(435)
Expenses and impairments:
Salaries, wages and benefits	0	0
General and administrative	0	0
Loss on foreclosed real estate	0	0
Occupancy	0	0
Total expenses and impairments	0	0
Other income (expense):
Interest income	378	435
Interest expense	0	0
Gain / (Loss) on interest rate swaps and caps	0	0
Income before taxes	(63,483)	(65,749)
Income tax expense	0	0
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	(63,483)
Intercompany Gains (Losses)	(63,483)	(65,749)
Total other income (expense)	(63,105)	(65,314)
Net income	(63,483)	(65,749)
Nationstar Mortgage LLC
Revenues:
Servicing fee income		197,596
Other fee income		44,879
Total fee income		242,475
Gain on mortgage loans held for sale		188,587
Parent Company
Revenues:
Servicing fee income	0	0
Other fee income	0	0
Total fee income	0	0
Gain on mortgage loans held for sale	0	0
Total revenues	0	0
Expenses and impairments:
Salaries, wages and benefits	0	0
General and administrative	0	0
Loss on foreclosed real estate	0	0
Occupancy	0	0
Total expenses and impairments	0	0
Other income (expense):
Interest income	0	0
Interest expense	0	0
Gain / (Loss) on interest rate swaps and caps	0	0
Income before taxes	39,037	62,616
Income tax expense	15,001	0
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	24,036
Intercompany Gains (Losses)	39,037	62,616
Total other income (expense)	39,037	62,616
Net income	$ 24,036	$ 62,616

XML

Mortgage Loans Held for Sale and Investment - Mortgage Loans Held for Investment (Details) (USD $)	3 Months Ended	12 Months Ended
	Mar. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Allowance for Credit Losses, Write-downs	$ 1,000,000
Total mortgage loans held for investment, subject to nonrecourse debt - legacy assets, net	204,392,000	211,050,000
Mortgage Loans Held for Investment
Accounts, Notes, Loans and Financing Receivable [Line Items]
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield, Reclassifications from Nonaccretable Difference	(401,000)	(848,000)	(848,000)
Mortgage loans held for investment, subject to nonrecourse debt - legacy assets, net - unpaid principal balance	297,628,000	305,085,000
Transfer discount - accretable	(16,979,000)	(17,362,000)	(19,749,000)
Transfer discount - non-accretable	(72,708,000)	(74,529,000)
Allowance for loan losses	(3,549,000)	(2,144,000)
Total mortgage loans held for investment, subject to nonrecourse debt - legacy assets, net	$ 204,392,000	$ 211,050,000

XML

Acquisitions Purchase Price (Details) (USD $)	0 Months Ended
	Jun. 01, 2013	Oct. 31, 2013	May 31, 2013
Business Acquisition [Line Items]
Deposits to Acquire Mortgage Servicing Rights		$ 2,200,000
Business Acquisition, Cost of Acquired Entity, Purchase Price			75,700,000
Business Acquisition, Cost of Acquired Entity, Cash Paid	65,700,000
Business Acquisition, Purchase Price Allocation, Other Liabilities			(40,303,000)
Business Acquisition, Cost of Entity Acquired			75,700,000
Derivative [Member]
Business Acquisition [Line Items]
Business Acquisition, Purchase Price Allocation, Other Liabilities			(18,101,000)
Property, Plant and Equipment, Other Types [Member]
Business Acquisition [Line Items]
Business Acquisition, Purchase Price Allocation, Other Liabilities			(3,561,000)
Prepaid Expenses and Other Current Assets [Member]
Business Acquisition [Line Items]
Business Acquisition, Purchase Price Allocation, Other Liabilities			(700,000)
Accounts Payable and Accrued Liabilities [Member]
Business Acquisition [Line Items]
Business Acquisition, Purchase Price Allocation, Other Liabilities			589,000
Goodwill [Member]
Business Acquisition [Line Items]
Business Acquisition, Purchase Price Allocation, Other Liabilities			$ (35,397,000)

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Variable Interest Entities and Securitizations (Tables)

3 Months Ended

Mar. 31, 2014

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, 2014 and December 31, 2013 is presented in the following tables (in thousands):

	March 31, 2014				December 31, 2013
	Transfers Accounted for as Secured Borrowings		Reverse Secured Borrowings		Transfers Accounted for as Secured Borrowings		Reverse Secured Borrowings
ASSETS
Restricted cash	$	192,934	$	—	$	272,188	$	—
Reverse mortgage interests	—		1,135,654		—		1,039,645
Accounts receivable	2,295,144		—		4,031,444		—
Mortgage loans held for investment, principally subject to nonrecourse debt	202,614		—		208,263		—
Derivative financial instruments	3,100		—		3,691		—
Other assets	2,651		—		2,375		—
Total Assets	$	2,696,443	$	1,135,654	$	4,517,961	$	1,039,645
LIABILITIES
Notes payable	$	2,773	$	—	$	3,672,726	$	—
Payables and accrued liabilities	2,089,168		—		4,242		—
Nonrecourse debt–Legacy Assets	86,529		—		89,108		—
Participating interest financing	—		1,202,252		—		1,080,718
Total Liabilities	$	2,178,470	$	1,202,252	$	3,766,076	$	1,080,718

Unconsolidated Securitization Trusts

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

	March 31, 2014		December 31, 2013
Total collateral balances	$	3,708,047	$	3,831,473
Total certificate balances	3,719,476		3,843,694
Total mortgage servicing rights at fair value	26,945		30,074

Qualitative and Quantitative Information, Transferor's Continuing Involvement 60 days [Table Text Block]

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):

Principal Amount of Loans 60 Days or More Past Due	March 31, 2014		March 31, 2013
Unconsolidated securitization trusts	$	1,033,703	$	1,179,325
	For the three months ended March 31,
Credit Losses	2014		2013
Unconsolidated securitization trusts	$	66,542	$	64,858

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, 2014				March 31, 2013
	Servicing Fees Received		Loan Repurchases		Servicing Fees Received		Loan Repurchases
Unconsolidated securitization trusts	$	7,778	$	—	$	6,791	$	—

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Accounts Receivable (Tables)

3 Months Ended

Mar. 31, 2014

Receivables [Abstract]

Schedule of Accounts Receivable

Accounts receivable consist of the following (in thousands):

	March 31, 2014		December 31, 2013
Servicer advances, net of purchase discount $44,514 and $62,217, respectively	$	3,748,599	$	5,217,769
Reverse mortgage servicer advances	141,628		93,494
Receivables from trusts and agencies	79,395		105,917
Accrued revenues	46,078		57,082
Accrued interest	1,911		6,970
Other	39,866		155,250
Total accounts receivable	$	4,057,477	$	5,636,482

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Recent Accounting Developments

3 Months Ended

Mar. 31, 2014

Accounting Changes and Error Corrections [Abstract]

Significant Accounting Policies [Text Block]

Recent Accounting Developments

Accounting Standards Update No 2013-10, Derivatives and Hedging: Inclusion of the Fed Funds Effective Swap Rate (or Overnight Index Swap Rate) as a Benchmark Interest Rate for Hedge Accounting Purposes (ASU 2013-10), was created to expand the benchmarks that can be used in hedge and derivative accounting. Currently, the only rates that can be used as benchmarks are the rate on Treasury obligations of the U.S. government (UST) and the London Interbank Offered Rate (LIBOR) swap rate. This update provides that the Fed Funds Effective Swap Rate (OIS) can also be used as a benchmark rate in U.S. hedge accounting. The amendment update is effective for any hedging relationships entered into after July 17, 2013. The adoption of ASU 2013-10 did not have a material impact on our financial condition, liquidity or results of operations.

Accounting Standards Update No 2013-11, Income Taxes: Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists (ASU 2013-11), was created to eliminate the differences in presenting unrecognized tax benefits. This update specifies that unrecognized tax benefits should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss or a tax credit carryforward. When a net operating loss carryforward, a similar tax loss or tax credit carryforward is not available at a reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes or the entity does not intend to use the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. The amendment update is effective as of December 15, 2013. The adoption of ASU 2013-11 is not expected to have a material impact on our financial condition, liquidity or results of operations.

Accounting Standard Update No 2014-04, Receivables - Troubled Debt Restructuring by Creditors Reclassification of

Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure, was created to clarify when a creditor should be considered to have received physical possession of residential real estate property collateralizing a consumer mortgage so that the asset would be derecognized in the receivable and recognized as real estate property. This update specifies that an in substance repossession occurs when either the creditor has obtained the legal title to the property after a foreclosure or the borrower has transferred all interest in the property to the creditor through a deed in lieu of foreclosure or similar legal agreement so that at that time the asset should be reclassified from a loan receivable to real estate property. This update also provides that a disclosure of the amount of foreclosed residential real estate property and the recorded investment in consumer mortgage loans collateralized by residential real estate property that is the process of foreclosure must be included in both interim and annual financial reports. This amendment update is effective for periods for fiscal years beginning after December 15, 2014. The adoption of ASU 2014-04 is not expected to have a material impact on our financial condition, liquidity or results of operations.

Recent Accounting Developments

Recent Accounting Developments

Accounting Standards Update No 2013-10, Derivatives and Hedging: Inclusion of the Fed Funds Effective Swap Rate (or Overnight Index Swap Rate) as a Benchmark Interest Rate for Hedge Accounting Purposes (ASU 2013-10), was created to expand the benchmarks that can be used in hedge and derivative accounting. Currently, the only rates that can be used as benchmarks are the rate on Treasury obligations of the U.S. government (UST) and the London Interbank Offered Rate (LIBOR) swap rate. This update provides that the Fed Funds Effective Swap Rate (OIS) can also be used as a benchmark rate in U.S. hedge accounting. The amendment update is effective for any hedging relationships entered into after July 17, 2013. The adoption of ASU 2013-10 did not have a material impact on our financial condition, liquidity or results of operations.

Accounting Standards Update No 2013-11, Income Taxes: Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists (ASU 2013-11), was created to eliminate the differences in presenting unrecognized tax benefits. This update specifies that unrecognized tax benefits should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss or a tax credit carryforward. When a net operating loss carryforward, a similar tax loss or tax credit carryforward is not available at a reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes or the entity does not intend to use the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. The amendment update is effective as of December 15, 2013. The adoption of ASU 2013-11 is not expected to have a material impact on our financial condition, liquidity or results of operations.

Accounting Standard Update No 2014-04, Receivables - Troubled Debt Restructuring by Creditors Reclassification of

Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure, was created to clarify when a creditor should be considered to have received physical possession of residential real estate property collateralizing a consumer mortgage so that the asset would be derecognized in the receivable and recognized as real estate property. This update specifies that an in substance repossession occurs when either the creditor has obtained the legal title to the property after a foreclosure or the borrower has transferred all interest in the property to the creditor through a deed in lieu of foreclosure or similar legal agreement so that at that time the asset should be reclassified from a loan receivable to real estate property. This update also provides that a disclosure of the amount of foreclosed residential real estate property and the recorded investment in consumer mortgage loans collateralized by residential real estate property that is the process of foreclosure must be included in both interim and annual financial reports. This amendment update is effective for periods for fiscal years beginning after December 15, 2014. The adoption of ASU 2014-04 is not expected to have a material impact on our financial condition, liquidity or results of operations.

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Mortgage Loans Held for Sale and Investment (Tables)

3 Months Ended

Mar. 31, 2014

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, 2014		December 31, 2013
Mortgage loans held for sale – unpaid principal balance	$	1,668,997	$	2,532,881
Mark-to-market adjustment	72,129		70,499
Total mortgage loans held for sale	$	1,741,126	$	2,603,380

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, 2014			March 31, 2013
Mortgage loans held for sale – beginning balance	$	2,603,380		$	1,480,537
Mortgage loans originated and purchased, net of fees	5,402,862			3,781,116
Proceeds on sale of and payments of mortgage loans held for sale	(6,261,204		)	(3,549,535		)
Transfer of mortgage loans held for sale to held for investment or other assets	(3,912		)	(8,409		)
Mortgage loans held for sale – ending balance	$	1,741,126		$	1,703,709

Schedule of Loans Held for Investment

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

	March 31, 2014			December 31, 2013
Mortgage loans held for investment, principally subject to nonrecourse debt - Legacy Assets, net – unpaid principal balance	$	297,628		$	305,085
Transfer discount
Accretable	(16,979		)	(17,362		)
Non-accretable	(72,708		)	(74,529		)
Allowance for loan losses	(3,549		)	(2,144		)
Total mortgage loans held for investment, principally subject to nonrecourse debt - Legacy Assets, net	$	204,392		$	211,050

Changes in Accretable Yield on Mortgage Loans Held for Investment

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

	Three months ended March 31, 2014			Year ended December 31, 2013
Accretable Yield
Balance at the beginning of the period	$	17,362		$	19,749
Additions	—			—
Accretion	(784		)	(3,235		)
Reclassifications from (to) nonaccretable discount	401			848
Disposals	—			—
Balance at the end of the period	$	16,979		$	17,362

Allowance for Loan Losses

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 the 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, 2014		December 31, 2013
	(in thousands)
Credit Quality by Delinquency Status
Performing	$	210,090	$	218,262
Non-Performing	87,538		86,823
Total	$	297,628	$	305,085
Credit Quality by Loan-to-Value Ratio
Less than 60	$	31,084	$	32,885
Less than 70 and more than 60	16,125		14,633
Less than 80 and more than 70	21,021		23,075
Less than 90 and more than 80	26,179		25,536
Less than 100 and more than 90	26,881		25,686
Greater than 100	176,338		183,270
Total	$	297,628	$	305,085

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Income Taxes (Details) (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Dec. 31, 2013
Income Tax Disclosure [Abstract]
Income tax expense	$ 15,001,000	$ 38,377,000
Effective tax rate	38.80%	38.00%
Net deferred tax liability	118,600,000		102,729,000
Valuation allowance on deferred tax asset	$ 46,700,000

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Business Segment Reporting (Tables)

3 Months Ended

Mar. 31, 2014

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, 2014
	Servicing			Originations			Operating Segments			Legacy Portfolio and Other			Eliminations			Consolidated
REVENUES:
Servicing fee income	$	254,347		$	—		$	254,347		$	298		$	(14,481	)	$	240,164
Other fee income	86,802			14,792			101,594			(47		)	—			101,547
Total fee income	341,149			14,792			355,941			251			(14,481		)	341,711
Gain/(loss) on mortgage loans held for sale	(1,695		)	116,200			114,505			(672		)	14,103			127,936
Total revenues	339,454			130,992			470,446			(421		)	(378		)	469,647
Total expenses and impairments	205,963			108,320			314,283			6,850			—			321,133
Other income (expense):
Interest income	18,664			21,521			40,185			3,380			378			43,943
Interest expense	(114,626		)	(36,603		)	(151,229		)	(5,371		)	—			(156,600		)
Gain (loss) on interest rate swaps and caps	2,556			—			2,556			265			—			2,821
Total other income (expense)	(93,406		)	(15,082		)	(108,488		)	(1,726		)	378			(109,836		)
Income (loss) before taxes	$	40,085		$	7,590		$	47,675		$	(8,997	)	$	—		$	38,678
Depreciation and amortization	$	4,588		$	2,967		$	7,555		$	1,237		$	—		$	8,792
Total assets	9,015,131			1,992,477			11,007,608			624,955			—			11,632,563

	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 (loss) 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

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Accounts Receivable Accquired Servicing Advances (Details) (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Mar. 07, 2014	Feb. 28, 2014	Jan. 30, 2014	Dec. 31, 2013	Sep. 30, 2013
Accounts, Notes, Loans and Financing Receivable [Line Items]
Acquired Servicing Advances, Net							$ 3,600,000,000
Service Advances, Discount	44,500,000					62,200,000	60,100,000
Accretion of Service Advances Discount	3,800,000	6,100,000
Servicer Advances sold to unaffiliated third party	1,600,000,000		300,000,000	800,000,000	300,000,000	2,700,000,000
Eliminated Servicer Advance, Discount due to advance sale	$ 20,700,000					$ 28,100,000

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Indebtedness - Notes Payable Summary (Details) (USD $)	Mar. 31, 2014	Dec. 31, 2013	Jan. 31, 2013
Debt Instrument
Outstanding	$ 4,591,998,000	$ 6,984,351,000
Collateral Pledged	5,113,408,000	7,725,803,000
Servicing Segment | Notes Payable, Other | MBS Advance Financing Facility
Debt Instrument
Outstanding	524,742,000	560,814,000
Collateral Pledged	606,833,000	651,953,000
Servicing Segment | Notes Payable, Other | Securities Repurchase Facility (2011)
Debt Instrument
Outstanding	34,196,000	35,546,000
Collateral Pledged	55,603,000	55,603,000
Servicing Segment | Notes Payable, Other | MBS Advance Financing Facility 2012 [Member]
Debt Instrument
Outstanding	50,000,000	179,306,000
Collateral Pledged	136,378,000	220,833,000
Servicing Segment | Notes Payable, Other | NSM Advance Receivable Trust (2013) [Member]
Debt Instrument
Outstanding	685,109,000	1,240,940,000
Collateral Pledged	747,067,000	1,347,410,000
Servicing Segment | Notes Payable, Other | NSM Servicer Advance Receivable Trust 2013-BA [Member]
Debt Instrument
Outstanding	628,582,000	1,579,830,000
Collateral Pledged	709,165,000	1,764,296,000
Servicing Segment | Notes Payable to Banks | Agency Advance Financing Facility (2011-1)
Debt Instrument
Debt Instrument, Face Amount			300,000,000
Outstanding	775,477,000	851,957,000
Collateral Pledged	837,790,000	918,574,000
Servicing Segment | Notes Payable to Banks | Reverse Participations Financing Facility
Debt Instrument
Outstanding	58,245,000	102,031,000
Collateral Pledged	75,784,000	124,536,000
Originations Segment | Notes Payable, Other | Warehouse Facility $700 Million [Member]
Debt Instrument
Outstanding	119,991,000	111,980,000
Collateral Pledged	122,437,000	115,629,000
Originations Segment | Notes Payable, Other | Warehouse Facility $600 Million
Debt Instrument
Outstanding	300,395,000	214,570,000
Collateral Pledged	307,170,000	224,162,000
Originations Segment | Notes Payable to Banks | Warehouse Facility $200 Million [Member]
Debt Instrument
Outstanding	5,268,000	63,357,000
Collateral Pledged	7,786,000	93,098,000
Originations Segment | Notes Payable to Banks | Warehouse Facility $1.5 Billion [Member]
Debt Instrument
Outstanding	727,778,000	797,281,000
Collateral Pledged	793,102,000	891,648,000
Originations Segment | Notes Payable to Banks | Warehouse Facility $750 Million [Member]
Debt Instrument
Outstanding	314,830,000	639,378,000
Collateral Pledged	327,364,000	673,599,000
Originations Segment | Notes Payable to Banks | Warehouse Facility $400 Million [Member]
Debt Instrument
Outstanding	367,330,000	447,926,000
Collateral Pledged	386,871,000	477,980,000
Originations Segment | Notes Payable to Banks | Warehouse Facility $500 Million [Member]
Debt Instrument
Outstanding	55,000	159,435,000
Collateral Pledged	$ 58,000	$ 166,482,000

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Consolidated Balance Sheets (USD $) In Thousands, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013
Mortgage Servicing Rights Liability Resulting from Sale of Servicer Advances, Rights not Accounted for as a Sale	$ 39,737	$ 29,874
Assets
Cash and cash equivalents	404,073	441,902
Restricted cash	471,635	592,747
Accounts receivable	4,057,477	5,636,482
Mortgage loans held for sale	1,741,126	2,603,380
Mortgage loans held for investment, subject to nonrecourse debt - Legacy Assets, net of allowance for loan losses of $6,101 and $5,824, respectively	204,392	211,050
Reverse mortgage interests	1,620,879	1,434,506
Mortgage servicing rights - fair value	2,590,780	2,503,162
Property and equipment, net of accumulated depreciation of $42,573 and $39,201, respectively	119,306	119,185
Derivative Assets	95,774	123,878
Other assets	327,121	360,397
Total assets	11,632,563	14,026,689
Liabilities and equity
Notes payable	4,591,998	6,984,351
Unsecured senior notes	2,444,020	2,444,062
Payables and accrued liabilities	1,189,430	1,308,450
Derivative financial instruments	6,377	8,526
Mortgage servicing liabilities	82,210	82,521
Non-Recourse Debt	2,306,701	2,208,881
Total liabilities	10,620,736	13,036,791
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	906	906
Additional paid-in-capital	571,640	566,642
Retained earnings	446,377	422,341
Treasury Stock, Value	(11,727)	(6,944)
Accumulated Other Comprehensive Income (Loss), Net of Tax	0	1,963
Total equity	1,007,196	984,908
Stockholders' Equity Attributable to Noncontrolling Interest	4,631	4,990
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	1,011,827	989,898
Total liabilities and equity	11,632,563	14,026,689
Legacy Asset [Member]
Liabilities and equity
Non-Recourse Debt	$ 86,529	$ 89,107

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Acquisitions (Details) (USD $)

3 Months Ended

Mar. 31, 2014

Oct. 31, 2013

May 31, 2013

Acquisitions [Abstract]

Business Combination Disclosure [Text Block]

Acquisition

On May 31, 2013, Nationstar acquired the loan origination operations and certain assets of Greenlight Financial Services, a residential mortgage originator (Greenlight), which was accounted for as a business combination. The assets acquired from Greenlight consist of certain personal property and equipment, intellectual property (including the Greenlight trademark), prepaid expenses and unfunded loan pipeline. Certain post-closing liabilities related to these assets were also assumed as part of the transaction. The aggregate purchase price for these assets was approximately $75.7 million, $65.7 million of which was paid on May 31, 2013, with the balance paid in September 2013. In a separate transaction, Nationstar acquired approximately $98.0 million in UPB of mortgage loans from Greenlight. The cash flows from the loan purchase is included in operating activities, consistent with the normal loan purchase activity. Addtionally, in October 2013, Nationstar acquired certain MSRs from Greenlight for an additional $2.2 million.

The table below presents the purchase price allocation of the acquisition date fair values of the assets acquired and the liabilities assumed as of May 31, 2013 (in thousands):

	May 31, 2013
Intangible assets	$	18,530
Derivative financial instruments	18,101
Equipment	3,561
Prepaid expenses and other assets	700
Payables and accrued liabilities	(589		)
Net assets acquired	40,303
Estimated purchase price	75,700
Goodwill	$	35,397

To determine the fair value of derivative financial instruments, Nationstar utilized the exchange price or dealer market price for the particular derivative contract which the company classifies as Level 2 measurements in the fair value hierarchy (See Note 14 - Fair Value Measurements). The remaining assets acquired and liabilities assumed were estimated using unobservable inputs, which the Company classifies as Level 3 measurements in the fair value hierarchy.

The excess of the purchase price over the fair value of assets acquired and liabilities assumed was allocated to goodwill.

Goodwill of $35.4 million was recorded in our Originations segment. All of the goodwill recorded as a result of this

transaction is expect to be deductible for tax purposes. Additionally, Nationstar included $73.1 million in revenues and $20.7 million in earnings related to Greenlight for three months ended March 31, 2014.

The following table presents the unaudited pro forma combined revenues and net income as if Greenlight net assets had been acquired on January 1, 2012 (in thousands):

	For the three months ended March 31,
	2014		2013
Revenues	$	469,647	$	481,366
Net Income	$	24,036	$	76,493

Business Acquisition [Line Items]

Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net

$ 40,303,000

Mortgage loans held for sale, acquistion

98,000,000

Deposits to Acquire Mortgage Servicing Rights

2,200,000

Business Acquisition, revenue reported during the current period

73,100,000

Business Acquisition, Earnings during the current period

20,700,000

Goodwill [Member]

Business Acquisition [Line Items]

Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net

$ 35,397,000

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Commitments and Contingencies - Other Contingencies (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2014 Loan Subservicing Agreement	Dec. 31, 2013 Loan Subservicing Agreement	Mar. 31, 2014 Reverse Mortgages	Feb. 28, 2013 Reverse Mortgages
Mortgage Servicing Rights [Line Items]
Principal Amount Outstanding on Loans Managed and Securitized or Asset-backed Financing Arrangement	$ 2,900,000	$ 26,600,000	$ 35,400,000	$ 28,900,000	$ 100,000

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Unaudited Consolidated Statements of Cash Flows (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Operating activities
Net income	$ 24,036	$ 62,616
Adjustments to reconcile net income to net cash (used in) / provided by operating activities:
Share-based compensation	2,809	2,858
Loss on foreclosed real estate	600	2,007
(Gain) / loss on derivatives including ineffectiveness on interest rate swaps and caps	(2,821)	(1,268)
Fair value changes in excess spread financing	(3,369)	23,891
Depreciation and amortization	8,792	3,901
Fair value changes in mortgage servicing rights	(78,687)	(9,384)
Fair Value Changes in MSR Financing Liability	(10,788)
Amortization of discounts	9,959	9,509
Gain on mortgage loans held for sale	(127,936)	(188,587)
Amortization of debt discount	9,959	9,509
Mortgage loans originated and purchased, net of fees	(5,402,862)	(3,781,116)
Cost of loans sold and principal payments and prepayments, and other changes in mortgage loans originated as held for sale, net of fees	(6,361,308)	(3,694,859)
Excess Tax Benefit (Tax Deficiency) from Share-based Compensation, Operating Activities	(2,189)	(2,660)
Cash settlement on derivative financial instruments	0	(129)
Changes in assets and liabilities:
Accounts receivable, net	(12,107)	81,094
Reverse mortgage interests	(197,529)	(178,181)
Other assets	12,814	6,486
Payables and accrued liabilities	(122,141)	(104,947)
Net Cash Provided by (Used in) Operating Activities	617,263	(360,283)
Investing activities
Property and equipment additions, net of disposals	(8,913)	(5,867)
Payment for Reverse Mortgage Fundings	0	(50,198)
Cash proceeds from assumption of reverse mortgage servicing obligations, net		(50,198)
Purchase of forward mortgage servicing rights, net of liabilities incurred	(93,092)	(266,625)
Loan Repurchases from Ginnie Mae	0	(8,815)
Proceeds from sales of REO	23,498	4,157
Proceeds from the sale of servicer advances	182,871
Payments to Acquire Businesses, Net of Cash Acquired	0	(12,500)
Net cash (used in) / provided by investing activities	104,364	(339,848)
Financing activities
Issuance of Senior Unsecured Notes, net	0	599,269
Transfers (to) / from restricted cash, net	(104,225)	(32,723)
Issuance of participating interest financing	(103,324)	(166,646)
Issuance of excess spread financing	37,859	192,730
Increase (decrease) in notes payable	(975,156)	(191,700)
Proceeds from mortgage servicing rights liability	20,651	0
Repayment of nonrecourse debt - Legacy assets	(2,998)	(2,612)
Repayment of excess servicing spread financing	(42,717)	(20,881)
Debt financing costs	(2,050)	(9,750)
Excess Tax Benefit (Tax Deficiency) from Share-based Compensation, Financing Activities	2,189	2,660
Proceeds from Noncontrolling Interests	0	4,990
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense	(4,783)	(6,554)
Net Cash Provided by (Used in) Financing Activities	(759,456)	767,521
Net increase / (decrease) in cash and cash equivalents	(37,829)	67,390
Cash and cash equivalents at beginning of period	441,902	152,649
Cash and cash equivalents at end of period	404,073	220,039
Supplemental disclosures of non-cash activities
Transfer of mortgage loans held for investment to REO at fair value	1,336	1,454
Transfer of reverse mortgage interest to REO	11,156	0
Mortgage servicing rights resulting from sale or securitization of mortgage loans	58,304	31,268
Tax related share-based settlement of common stock	4,783	6,554
Adjustments to Additional Paid in Capital, Income Tax Benefit from Share-based Compensation	2,189
Liabilities incurred from acquired servicer advances	6,494	365,567
Parent Company
Operating activities
Net income	24,036	62,616
Adjustments to reconcile net income to net cash (used in) / provided by operating activities:
Share-based compensation	0	0
Loss on foreclosed real estate	0	0
(Gain) / loss on derivatives including ineffectiveness on interest rate swaps and caps	0	0
Fair value changes in excess spread financing	0	0
Depreciation and amortization	0	0
Fair value changes in mortgage servicing rights	0	0
Gain on mortgage loans held for sale	0	0
Amortization of debt discount	0	0
Mortgage loans originated and purchased, net of fees	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
Excess Tax Benefit (Tax Deficiency) from Share-based Compensation, Operating Activities	0
Changes in assets and liabilities:
Accounts receivable, net	0	0
Reverse mortgage interests	0	0
Other assets	19,784	(3,894)
Payables and accrued liabilities	0	2,660
Net Cash Provided by (Used in) Operating Activities	4,783	3,894
Investing activities
Property and equipment additions, net of disposals	0	0
Cash proceeds from assumption of reverse mortgage servicing obligations, net	0
Purchase of forward mortgage servicing rights, net of liabilities incurred	0	0
Loan Repurchases from Ginnie Mae	0	0
Proceeds from sales of REO	0	0
Net cash (used in) / provided by investing activities	0	0
Financing activities
Issuance of Senior Unsecured Notes, net	0	0
Transfers (to) / from restricted cash, net	0	0
Issuance of participating interest financing	0	0
Issuance of excess spread financing	0	0
Increase (decrease) in notes payable	0	0
Repayment of nonrecourse debt - Legacy assets	0	0
Repayment of excess servicing spread financing	0
Debt financing costs	0	0
Excess Tax Benefit (Tax Deficiency) from Share-based Compensation, Financing Activities	0	2,660
Proceeds from Noncontrolling Interests	0
Net Cash Provided by (Used in) Financing Activities	(4,783)	(3,894)
Net increase / (decrease) in cash and cash equivalents	0	0
Cash and cash equivalents at beginning of period	0	0
Cash and cash equivalents at end of period	$ 0	$ 0

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Commitments and Contingencies - Litigation and Regulatory Matters (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Loss Contingencies [Line Items]
Legal Fees	$ 4.9	$ 3.5
Litigation and Regulatory Matters [Member]
Loss Contingencies [Line Items]
Loss Contingency, Range of Possible Loss, Minimum	1.8
Loss Contingency, Range of Possible Loss, Maximum	$ 6.3

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Mortgage Loans Held for Sale and Investment - Credit Quality (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013
Minimum | Loan-to-Value Ratio, Range Two [Member]
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, Range Two [Member]
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	$ 297,628	$ 305,085
Loan-to-Value Ratio Greater Than 100 Percent | Mortgage Loans Held for Investment
Financing Receivable, Recorded Investment [Line Items]
Unpaid principal balance	176,338	183,270
Loan-to-Value Ratio Between 90 Percent and 100 Percent | Mortgage Loans Held for Investment
Financing Receivable, Recorded Investment [Line Items]
Unpaid principal balance	26,881	25,686
Loan-to-Value Ratio Between 80 Percent and 90 Percent | Mortgage Loans Held for Investment
Financing Receivable, Recorded Investment [Line Items]
Unpaid principal balance	26,179	25,536
Loan-to-Value Ratio Between 70 Percent and 80 Percent | Mortgage Loans Held for Investment
Financing Receivable, Recorded Investment [Line Items]
Unpaid principal balance	21,021	23,075
Loan-to-Value Ratio, Range Two [Member] | Mortgage Loans Held for Investment
Financing Receivable, Recorded Investment [Line Items]
Unpaid principal balance	16,125	14,633
Loan-to-Value Ratio Less Than 60 Percent | Mortgage Loans Held for Investment
Financing Receivable, Recorded Investment [Line Items]
Unpaid principal balance	31,084	32,885
Nonperforming Financing Receivable [Member] | Mortgage Loans Held for Investment
Financing Receivable, Recorded Investment [Line Items]
Unpaid principal balance	87,538	86,823
Performing Financing Receivable [Member] | Mortgage Loans Held for Investment
Financing Receivable, Recorded Investment [Line Items]
Unpaid principal balance	$ 210,090	$ 218,262

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Guarantor Financial Statement Information - Consolidating Balance Sheets (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013	Mar. 31, 2013	Dec. 31, 2012
Assets
Cash and cash equivalents	$ 404,073	$ 441,902	$ 220,039	$ 152,649
Restricted cash	471,635	592,747
Accounts receivable, net	4,057,477	5,636,482
Mortgage loans held for sale	1,741,126	2,603,380	1,703,709	1,480,537
Mortgage loans held for investment, subject to nonrecourse debt - Legacy Asset, net	204,392	211,050
Participating interest in reverse mortgages	1,620,879	1,434,506
Receivables from affiliates	5,306	8,861
Mortgage servicing rights - fair value	2,576,550	2,488,283
Servicing Asset	2,590,780	2,503,162
Investment in subsidiaries	0	0
Property and equipment, net	119,306	119,185
Derivative Assets	95,774	123,878
Real estate owned (REO), net	37,734	45,632
Other assets	327,121	360,397
Total assets	11,632,563	14,026,689	8,885,565
Liabilities and shareholders' equity
Notes payable	4,591,998	6,984,351
Unsecured senior notes	2,444,020	2,444,062
Payables and accrued liabilities	1,189,430	1,308,450
Payables to affiliates	0	0
Derivative financial instruments	6,377	8,526
Mortgage Servicing Liability	82,210	82,521
Non-Recourse Debt	2,306,701	2,208,881
Excess spread financing - fair value	978,183	986,410
Total liabilities	10,620,736	13,036,791
Total liabilities and equity	11,632,563	14,026,689
Stockholders' Equity Attributable to Parent	1,007,196	984,908		757,682
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	1,011,827	989,898
Parent Company
Assets
Cash and cash equivalents	0	0	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	0
Mortgage servicing rights - fair value	0	0
Investment in subsidiaries	1,009,738	968,027
Property and equipment, net	0	0
Derivative Assets	0	0
Other assets	2,089	21,872
Total assets	1,011,827	989,899
Liabilities and shareholders' equity
Notes payable	0	0
Unsecured senior notes	0	0
Payables and accrued liabilities	0	0
Payables to affiliates	0	0
Derivative financial instruments	0	0
Mortgage Servicing Liability	0	0
Non-Recourse Debt	0	0
Total liabilities	0	0
Total liabilities and equity	1,011,827	989,899
Stockholders' Equity Attributable to Parent	1,011,827	989,899
Issuer
Assets
Cash and cash equivalents	381,635	422,268	209,286	152,248
Restricted cash	276,320	312,120
Accounts receivable, net	4,008,370	1,569,021
Mortgage loans held for sale	1,740,951	2,603,380
Mortgage loans held for investment, subject to nonrecourse debt - Legacy Asset, net	1,778	2,786
Participating interest in reverse mortgages	1,620,879	1,434,506
Servicing Asset	2,590,780	2,503,162
Investment in subsidiaries	204,241	181,545
Property and equipment, net	114,832	115,765
Derivative Assets	92,674	120,187
Other assets	618,482	4,683,749
Total assets		13,948,489
Liabilities and shareholders' equity
Notes payable	2,502,831	3,311,625
Unsecured senior notes	2,444,020	2,444,062
Payables and accrued liabilities	1,203,396	1,319,172
Payables to affiliates	2,182,198	3,694,782
Derivative financial instruments	6,377	8,526
Mortgage Servicing Liability	82,210	82,521
Non-Recourse Debt	2,220,172	2,119,774
Total liabilities	10,641,204	12,980,462
Total liabilities and equity	11,650,942	13,948,489
Stockholders' Equity Attributable to Parent	1,009,738	968,027
Issuer
Assets
Cash and cash equivalents	381,635
Total assets	11,650,942
Guarantor (Subsidiaries)
Assets
Cash and cash equivalents	1,714	3,907	753	401
Restricted cash	3	3
Accounts receivable, net	2,366	2,582
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
Mortgage servicing rights - fair value	0	0
Investment in subsidiaries	0	0
Property and equipment, net	877	855
Derivative Assets	0	0
Other assets	347,849	323,346
Total assets	352,809	330,693
Liabilities and shareholders' equity
Notes payable	0	0
Unsecured senior notes	0	0
Payables and accrued liabilities	2,994	5,950
Payables to affiliates	116,495	116,349
Derivative financial instruments	0	0
Mortgage Servicing Liability	0	0
Non-Recourse Debt	0	0
Total liabilities	119,489	122,299
Total liabilities and equity	352,809	330,693
Stockholders' Equity Attributable to Parent	233,320	208,394
Non-Guarantor (Subsidiaries)
Assets
Cash and cash equivalents	20,724	15,727	10,000	0
Restricted cash	195,312	280,624
Accounts receivable, net	46,741	4,064,879
Mortgage loans held for sale	175	0
Mortgage loans held for investment, subject to nonrecourse debt - Legacy Asset, net	202,614	208,264
Participating interest in reverse mortgages	0	0
Mortgage servicing rights - fair value	0	0
Investment in subsidiaries	0	0
Property and equipment, net	3,597	2,565
Derivative Assets	3,100	3,691
Other assets	1,848,978	3,373,048
Total assets	2,321,241	7,948,798
Liabilities and shareholders' equity
Notes payable	2,089,167	3,672,726
Unsecured senior notes	0	0
Payables and accrued liabilities	14,503	14,791
Payables to affiliates	160,121	4,199,023
Derivative financial instruments	0	0
Mortgage Servicing Liability	0	0
Non-Recourse Debt		89,107
Other Non-Recourse Debt	86,529
Total liabilities	2,350,320	7,975,647
Total liabilities and equity	2,321,241	7,948,798
Stockholders' Equity Attributable to Parent	(29,079)	(26,849)
Eliminations
Assets
Cash and cash equivalents	0	0	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	0
Mortgage servicing rights - fair value	0	0
Investment in subsidiaries	(1,213,979)	(1,149,572)
Property and equipment, net	0	0
Derivative Assets	0	0
Other assets	(2,490,277)	(8,041,618)
Total assets	(3,704,256)	(9,191,190)
Liabilities and shareholders' equity
Notes payable	0	0
Unsecured senior notes	0	0
Payables and accrued liabilities	(31,463)	(31,463)
Payables to affiliates	(2,458,814)	(8,010,154)
Derivative financial instruments	0	0
Mortgage Servicing Liability	0	0
Non-Recourse Debt	0	0
Total liabilities	(2,490,277)	(8,041,617)
Total liabilities and equity	(3,704,256)	(9,191,190)
Stockholders' Equity Attributable to Parent	$ (1,213,979)	$ (1,149,573)

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Payables and Accrued Liabilities (Tables)

3 Months Ended

Mar. 31, 2014

Payables and Accruals [Abstract]

Schedule of Payables and Accrued Liabilities

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

	March 31, 2014		December 31, 2013
Payable to servicing and subservicing investors(1)	359,395		359,214
Payable to insurance carriers and insurance cancellation reserves	166,040		164,244
Loans subject to repurchase from Ginnie Mae	134,134		120,736
Accrued interest	82,840		76,303
MSR purchases payable including advances	53,102		135,759
Current income taxes	47,391		35,961
Repurchase reserves	44,478		40,695
Accrued bonus and payroll	34,102		66,755
Other(2)	267,948		308,783
Total payables and accrued liabilities	$	1,189,430	$	1,308,450

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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, 2014	Dec. 31, 2013	Mar. 31, 2014 Mortgage Servicing Rights	Dec. 31, 2013 Mortgage Servicing Rights	Mar. 31, 2014 Reverse Mortgages	Feb. 28, 2013 Reverse Mortgages
Servicing Assets at Amortized Value
Principal Amount Outstanding on Loans Managed and Securitized or Asset-backed Financing Arrangement	$ 2,900,000		$ 326,413,078	$ 322,814,139	$ 28,900,000	$ 100,000
Servicing Asset at Amortized Value, Balance [Roll Forward]
Balance at the beginning of the period			14,879	10,973
Purchase/Assumptions of servicing rights/obligations			0	3,980
Amortization/Accretion			(649)	(74)
Balance at the end of the period			14,230	14,879
Servicing Liability at Amortized Value [Roll Forward]
Balance at the beginning of the period	82,210	82,521	82,521	83,238
Purchase/Assumptions of servicing rights/obligations			0	0
Amortization/Accretion			(311)	(717)
Balance at the end of the period	$ 82,210	$ 82,521	$ 82,210	$ 82,521

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Capital Requirements

3 Months Ended

Mar. 31, 2014

Mortgage Banking [Abstract]

Capital Requirements

Capital Requirements

Certain of Nationstar's secondary market investors require minimum net worth (capital) requirements, as specified in the respective selling and servicing agreements. To the extent that these requirements are not met, Nationstar's secondary market investors may utilize a range of remedies ranging from sanctions, suspension or ultimately termination of Nationstar's selling and servicing agreements, which would prohibit Nationstar from further originating or securitizing these specific types of mortgage loans or being an approved servicer.

Among Nationstar's various capital requirements related to its outstanding selling agreements, the most restrictive of these requires Nationstar to maintain a minimum adjusted net worth balance of $698.8 million. As of March 31, 2014, Nationstar was in compliance with its selling and servicing capital requirements.

Additionally, Nationstar is required to maintain a minimum tangible net worth of at least $400.0 million as of each quarter-end related to its outstanding Master Repurchase Agreements on its outstanding repurchase facilities. As of March 31, 2014, Nationstar was in compliance with these minimum tangible net worth requirements.

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Derivative Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2014

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, 2014
ASSETS
MORTGAGE LOANS HELD FOR SALE
Loan sale commitments	2015	$	92,972	$	1,481	$	1,474
DERIVATIVE FINANCIAL INSTRUMENTS
IRLCs	2015	2,892,348		85,069		(2,059		)
Forward MBS trades	2015	2,399,461		6,738		(25,528		)
LPCs	2015	171,834		867		74
Interest rate swaps and caps	2018	107,000		3,100		2,556
LIABILITIES
DERIVATIVE FINANCIAL INSTRUMENTS
IRLCs	2015	33,486		279		2,419
Interest rate swaps on ABS debt	2014-2017	394,341		569		265
Forward MBS trades	2015	1,866,675		5,180		(1,875		)
LPCs	2015	95,019		349		1,340
For the year ended December 31, 2013
ASSETS
MORTGAGE LOANS HELD FOR SALE
Loan sale commitments	2014	$	57,965	$	7	$	(14	)
DERIVATIVE FINANCIAL INSTRUMENTS
IRLCs	2014	3,083,131		87,128		(69,856		)
Forward MBS trades	2014	5,425,663		32,266		19,084
LPCs	2014	197,475		793		(460		)
Interest rate swaps and caps	2018	167,000		3,691		544
LIABILITIES
DERIVATIVE FINANCIAL INSTRUMENTS
IRLCs	2014	260,407		2,698		(1,613		)
Interest rate swaps and caps (1)		—		—		1,576
Interest rate swaps on ABS debt	2014-2017	424,269		834		1,012
Forward MBS trades	2014	1,351,870		3,305		8,713
LPCs	2014	204,486		1,689		(1,603		)

⁽¹⁾ In January and June 2013, Nationstar terminated these interest rate swaps.

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Guarantor Financial Statement Information - Details (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2014 subsidiary	Dec. 31, 2013
Debt Instrument
Unsecured Debt	$ 2,444,020	$ 2,444,062
Guarantor Subsidiary, Ownership Percentage	100.00%
Number of Subsidiaries as Guarantors of Unsecured Debt	2

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Business Segment Reporting

3 Months Ended

Mar. 31, 2014

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, 2) revenues generated on inter-segment services performed, and 3) interest expense on unsecured senior notes. Expenses are allocated to individual segments based on the estimated value of services performed, including estimated utilization of square footage and corporate personnel as well as 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, 2014
	Servicing			Originations			Operating Segments			Legacy Portfolio and Other			Eliminations			Consolidated
REVENUES:
Servicing fee income	$	254,347		$	—		$	254,347		$	298		$	(14,481	)	$	240,164
Other fee income	86,802			14,792			101,594			(47		)	—			101,547
Total fee income	341,149			14,792			355,941			251			(14,481		)	341,711
Gain/(loss) on mortgage loans held for sale	(1,695		)	116,200			114,505			(672		)	14,103			127,936
Total revenues	339,454			130,992			470,446			(421		)	(378		)	469,647
Total expenses and impairments	205,963			108,320			314,283			6,850			—			321,133
Other income (expense):
Interest income	18,664			21,521			40,185			3,380			378			43,943
Interest expense	(114,626		)	(36,603		)	(151,229		)	(5,371		)	—			(156,600		)
Gain (loss) on interest rate swaps and caps	2,556			—			2,556			265			—			2,821
Total other income (expense)	(93,406		)	(15,082		)	(108,488		)	(1,726		)	378			(109,836		)
Income (loss) before taxes	$	40,085		$	7,590		$	47,675		$	(8,997	)	$	—		$	38,678
Depreciation and amortization	$	4,588		$	2,967		$	7,555		$	1,237		$	—		$	8,792
Total assets	9,015,131			1,992,477			11,007,608			624,955			—			11,632,563

	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 (loss) 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

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Other Assets - Mortgage Servicing Rights (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Dec. 31, 2013
Mortgaging Servicing Rights
Loans subject to repurchase right from Ginnie Mae	$ 134,134		$ 120,736
Principal Amount Outstanding on Loans Managed and Securitized or Asset-backed Financing Arrangement	2,900,000
Payments to Acquire Mortgage Servicing Rights (MSR)	93,092	266,625
Mortgage Servicing Rights
Mortgaging Servicing Rights
Principal Amount Outstanding on Loans Managed and Securitized or Asset-backed Financing Arrangement	$ 326,413,078		$ 322,814,139

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Nature of Business, Basis of Presentation and Material Transaction

3 Months Ended

Mar. 31, 2014

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Nature of Business, Basis of Presentation and Material Transaction

Nature of Business and Basis of Presentation

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 enterprises (GSE) or other third-party investors in the secondary market. Nationstar Mortgage LLC (Nationstar) is the Company's principal operating subsidiary.

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 February 27, 2014. The results of operations for the interim periods disclosed are not necessarily indicative of the results that may be expected for the full year or any future period. 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.

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Consolidated Balance Sheets (Parenthetical) (USD $) In Thousands, except Share data, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013
Loans Held-for-sale, Fair Value Disclosure	$ 1,741,126	$ 2,585,340
Allowance for loan losses of mortgage loans held for investment, subject to nonrecourse debt	3,549	2,144
Servicing Asset at Fair Value, Amount	(2,576,550)	(2,488,283)
Accumulated depreciation of property and equipment	$ 83,011	$ 74,723
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
Common stock, shares authorized	1,000,000,000.00	1,000,000,000.00
Common Stock, Shares issued	90,787,000	90,330,000
Common Stock, Shares outstanding	90,787,000	90,330,000

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Indebtedness

3 Months Ended

Mar. 31, 2014

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, 2014				December 31, 2013
	Outstanding		Collateral Pledged		Outstanding		Collateral Pledged
Servicing Segment Notes Payable
MBS advance financing facility	$	524,742	$	606,833	$	560,814	$	651,953
Securities repurchase facility (2011)	34,196		55,603		35,546		55,603
Nationstar agency advance financing facility	775,477		837,790		851,957		918,574
Reverse participations financing facility	58,245		75,784		102,031		124,536
MBS advance financing facility (2012)	50,000		136,378		179,306		220,833
Nationstar Mortgage Advance Receivable Trust	685,109		747,067		1,240,940		1,347,410
Nationstar Servicer Advance Receivables Trust 2013-BA	628,582		709,165		1,579,830		1,764,296
Originations Segment Notes Payable
$1.50 billion warehouse facility	727,778		793,102		797,281		891,648
$750 million warehouse facility	314,830		327,364		639,378		673,599
$700 million warehouse facility	119,991		122,437		111,980		115,629
$600 million warehouse facility	300,395		307,170		214,570		224,162
$400 million warehouse facility	367,330		386,871		447,926		477,980
$300 million warehouse facility	55		58		159,435		166,482
$200 million warehouse facility	5,268		7,786		63,357		93,098
Total notes payable	$	4,591,998	$	5,113,408	$	6,984,351	$	7,725,803

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 $775.0 million in eligible servicing advance receivables. The interest rate is based on LIBOR plus a spread of 2.50% to 4.00%. The maturity date of this facility is March 2015.

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, 2014, 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.

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 $800.0 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 2014. 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.

Reverse participations 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 $50.0 million. The interest rate is LIBOR plus a spread of 5.00%. The maturity date of this facility is April 2015. This facility is secured by servicing advance receivables.

Nationstar Mortgage Advance Receivable Trust - In June 2013, Nationstar created an advance receivables trust with a number of financial institutions. This trust has variable funding notes (VFNs) with the capacity to borrow up to $1.1 billion. The interest rate on this financial instrument is based on LIBOR plus a spread of 1.15% to 5.30% depending on the class of the note. The maturity date of the VFN is June 2014. Nationstar also issued $1.0 billion of term notes to institutional investors of which $650.0 million remains outstanding. The notes have an average interest rate of 3.26% and mature in June 2016 and June 2018. The notes that were scheduled to mature in June 2014 were redeemed in January 2014. The VFN and the term notes are secured by servicing advance receivables and are nonrecourse to Nationstar.

Nationstar Servicer Advance Receivables Trust 2013-BA - In July 2013, Nationstar created an advance receivables trust with a financial institution. This trust has the capacity to borrow up to $1.0 billion with its interest rate based on LIBOR plus a spread of 2.50%. The maturity date is June 2014. This trust is secured by servicing advance receivables and is nonrecourse to Nationstar. Nationstar terminated this advance receivable facility in May 2014 at which time all outstanding balances had been repaid.

Originations Segment Notes Payable

$1.50 billion warehouse facility - Nationstar has a MRA with a financial institution, which will expire in September 2014. This facility has a committed amount of $1.50 billion. 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 2.25% to 3.25%, which varies based on the underlying transferred collateral.

$750 million warehouse facility - Nationstar has a MRA with a financial institution, which will expire in April 2015. This facility has a committed amount of $750.0 million. The MRA states that from time to time Nationstar may enter in 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 ranging from 1.75% to 2.50% which varies based on the underlying transferred collateral.

$700 million warehouse facility - Nationstar has a MRA with a financial institution, which will expire in August 2014. This facility has a committed amount of $350.0 million and an uncommitted amount of $350.0 million. 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 2.25% to 2.75% which varies based on the underlying transferred collateral.

$600 million warehouse facility - Nationstar has a MRA with a financial services company, as amended, which will expire in June 2014. The facility has a committed amount of $300.0 million and an uncommitted amount of $300.0 million 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% to 3.50% which varies based on the underlying transferred collateral.

$400 million warehouse facility - Nationstar has a MRA with a financial institution, which will expire in June 2014. This facility has a committed amount of $400.0 million. 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 2.25% to 2.75% which varies based on the underlying transferred collateral.

$300 million warehouse facility - Nationstar has a MRA with a financial institution, which will expire in May 2014. This facility has a committed amount of $150.0 million and an uncommitted amount of $150.0 million. 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 2.50%.

$200 million warehouse facility- Nationstar has a MRA with a financial institution, which will expire in February 2015. This

facility has an uncommitted amount of $200.0 million. 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 2.75%.

$75 million warehouse facility (HCM) - Home Community Mortgage LLC (HCM), an affiliate of Nationstar, has a MRA with a financial institution which will expire in September 2014. This facility has a committed amount of $75.0 million. The MRA states that from time to time HCM may enter into transactions in which HCM 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 HCM at a certain date, or on demand by HCM, against the transfer of funds from HCM. The interest rate is based on LIBOR plus a spread of 2.50% to 3.25% which varies based on the underlying transferred collateral. HCM has not begun financing loans utilizing this facility as of March 31, 2014.

$75 million warehouse facility - Nationstar has a MRA with a financial institution, which will expire in June 2014. This facility has a committed amount of $75.0 million. 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 3.75% to 4.50% which varies based on the underlying transferred collateral. There is no outstanding balance as of March 31, 2014 or December 31, 2013.

ASAP + facility - Nationstar has executed 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, 2014		December 31, 2013
$285 million face value, 10.875% interest rate payable semi-annually, due April 2015	$	283,523	$	283,153
$475 million face value, 6.500% interest rate payable semi-annually, due August 2018	475,000		475,000
$375 million face value, 9.625% interest rate payable semi-annually, due May 2019	379,159		379,360
$400 million face value, 7.875% interest rate payable semi-annually, due October 2020	400,618		400,634
$600 million face value, 6.500% interest rate payable semi-annually, due July 2021	605,720		605,915
$300 million face value, 6.500% interest rate payable semi-annually, due June 2022	300,000		300,000
Total	$	2,444,020	$	2,444,062

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 indentures for the unsecured senior notes provide that Nationstar may redeem all or a portion of the notes prior to certain fixed dates by paying a make-whole premium plus accrued and unpaid interest and additional interest, if any, to the redemption dates. In addition, Nationstar may redeem all or a portion of the senior notes at any time on or after certain fixed dates at the applicable redemption prices set forth in the indentures plus accrued and unpaid interest and additional interest, if any, to the redemption dates.

Additionally, the indentures provide that on or before certain fixed dates, Nationstar may redeem up to 35% of the aggregate principal amount of the senior notes with the net proceeds of certain equity offerings at a fixed redemption prices, plus accrued and unpaid interest and additional interest, if any, to the redemption dates, subject to compliance with certain conditions.

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.

As of March 31, 2014, the expected maturities of Nationstar's unsecured senior notes based on contractual maturities are as follows (in thousands).

Year	Amount
2014	$	—
2015	285,000
2016	—
2017	—
2018	475,000
Thereafter	1,675,000
Total	$	2,435,000

Other Nonrecourse Debt

A summary of the balances of other nonrecourse debt is presented below (in thousands):

	March 31, 2014		December 31, 2013
Nonrecourse debt - Legacy Assets	$	86,529	$	89,107
Excess spread financing - fair value	978,183		986,410
Participating interest financing	1,202,252		1,103,490
Mortgage servicing rights financing liabilities	39,737		29,874
Total	$	2,306,701	$	2,208,881

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$86.5 million and $89.1 million at March 31, 2014, and December 31, 2013, 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 $294.5 million and $302.0 million at March 31, 2014 and December 31, 2013, 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 $100.6 million and $103.6 million at March 31, 2014 and December 31, 2013, respectively.

Excess Spread Financing Debt at Fair Value

In conjunction with Nationstar's acquisition of certain MSRs 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 New Residential in which New Residential 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. New Residential has no prior or ongoing obligations associated with the Portfolios.

Contemporaneous with the above, Nationstar entered into refinanced loan agreements with New Residential. 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 thesame 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$978.2 million and $986.4 million at March 31, 2014 and December 31, 2013, respectively. The total outstanding principal balance was $858.7 million and $839.7 million at March 31, 2014 and December 31, 2013, 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, 2014
Excess spread financing	$	29,113	$	60,058	$	21,183	$	44,586	$	22,729	$	40,688
December 31, 2013
Excess spread financing	$	33,156	$	68,636	$	26,492	$	53,753	$	29,219	$	42,611

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. Also, a positive change in the above assumptions would not necessarily correlate with the corresponding decrease in the net carrying amount of the excess spread financing.

Participating Interest Financing

Participating interest financing represents 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 consolidated balance sheet, and recording the pooled HMBS as participating interest financing liabilities on the Company’s consolidated 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 0.14% to 7.02%. The participating interest financing was $1,202.3 million and $1,103.5 million at March 31, 2014 and December 31, 2013, respectively.

Mortgage Servicing Rights Financing

In December 2013, Nationstar entered into an agreement to sell the basic fee component of certain MSRs and servicer advances under specified terms. Under the terms of this agreement, the transfer of servicing is contingent on the receipt of consents from various third parties. Until these required consents are obtained Nationstar continues to be the named servicer and, for accounting purposes, ownership of the mortgage servicing rights continues to reside with Nationstar. Nationstar continues to account for the MSRs on its consolidated balance sheets. In addition, Nationstar records a MSRs financing liability associated with this financing transaction.

Nationstar has elected to measure the mortgage servicing rights financings at fair value with all changes in fair value recorded as a charge or credit to servicing fee income in the consolidated statements of operations and comprehensive income (loss). The total carrying amount was $39.7 million and $29.9 million as of March 31, 2014 and December 31, 2013, respectively.

Financial Covenants

Nationstar's borrowing arrangements and credit facilities contain customary events of default and financial covenants. Management believes Nationstar was in compliance with all covenants with the exception of one that requires positive net income on a rolling six month basis. As a result of the losses incurred in the quarter ended December 31, 2013, Nationstar was not in compliance with this covenant which is contained in three of its MRAs. Given the improved performance throughout the quarter ended March 31, 2014, we were able to obtain a waiver at no cost from each counterparty for the six month period ending March 31, 2014. Furthermore, Nationstar believes it was in compliance with all covenants as of April 30, 2014 without the need for any additional waivers or consents. At no time was there a payment default or event of default under these agreements.

As of March 31, 2014, management believes Nationstar was in compliance with its remaining financial covenants on it borrowing arrangements and credit facilities.

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Related Party Disclosures Related Party Transactions (Details) (USD $)				3 Months Ended			3 Months Ended
	Mar. 31, 2014	Dec. 31, 2013	Feb. 28, 2013	Mar. 31, 2014 Springleaf	Mar. 31, 2013 Springleaf	Dec. 31, 2013 Springleaf	Mar. 31, 2014 Newcastle	Mar. 31, 2013 Newcastle	Dec. 31, 2013 Newcastle	Mar. 31, 2014 Reverse Mortgages	Feb. 28, 2013 Reverse Mortgages
Related Party Transaction [Line Items]
Principal Amount Outstanding on Loans Managed and Securitized or Asset-backed Financing Arrangement	$ 2,900,000,000						$ 800,000,000		$ 1,000,000,000	$ 28,900,000,000	$ 100,000,000
Contractually Specified Servicing Fees, Late Fees, and Ancillary Fees Earned in Exchange for Servicing Financial Assets				2,000,000	2,100,000		1,100,000	1,200,000
Excess spread financing - fair value	978,183,000	986,410,000
Due from Affiliates	5,306,000	8,861,000		700,000		600,000
Mortgage Servicing Fee, Percentage of Unpaid Principal Balance							0.50%
Purchase price paid reverse mortgage			$ 50,200,000

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Capital Requirements Capital Requirements (Details) (USD $) In Millions, unless otherwise specified	Mar. 31, 2014
Mortgage Banking [Abstract]
Minimum Net Worth Required for Compliance	$ 698.8
Minimum Tangible Net Worth Required for Compliance	$ 400.0

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Share-based Compensation - Restricted Stock Rollforward (Details) (USD $) In Millions, except Share data in Thousands, unless otherwise specified	3 Months Ended	12 Months Ended
	Mar. 31, 2014	Dec. 31, 2013
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	$ 0.3
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Share-based Compensation Arrangements by Share-based Payment Award, Options, Forfeitures in Period, Weighted Average Exercise Price	$ 30	$ 20,460
Treasury Stock, Shares, Acquired	(149)	(168)
2012 Plan | Restricted Stock
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	1,376	1,293
Restricted Stock outstanding at March 31, 2012, Remaining Contractual Term	2 years 11 months	1 year 11 months 20 days
Granted	620	307
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value	$ 29.30	$ 37.88
Forfeited	(14)	(56)
Restricted Stock unvested and expected to vest	977
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested and Payable, Number	0

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Document and Entity Information	3 Months Ended
	Mar. 31, 2014	Apr. 30, 2014
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, 2014
Amendment Flag	false
Document Fiscal Year Focus	2014
Document Fiscal Period Focus	Q1
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		90,776,399

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Income Taxes

3 Months Ended

Mar. 31, 2014

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

Income tax expense was as follows (in thousands):

	For the three months ended
	March 31, 2014			March 31, 2013
Tax Expense	$	15,001		$	38,377
Effective tax rate	38.8		%	38.0		%

The Company had a net deferred tax liability of $118.6 million at March 31, 2014 and $102.7 million at December 31, 2013. A valuation allowance of $46.7 million was recorded against deferred tax assets at March 31, 2014 and December 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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Indebtedness Indebtedness - Fair Value Sensitivity Analysis (Details) (USD $)
In Thousands, unless otherwise specified

3 Months Ended

Mar. 31, 2014

Mar. 31, 2014

Excess Spread Financing

Dec. 31, 2013

Excess Spread Financing

Mar. 31, 2014

100 Basis Points

Excess Spread Financing

Dec. 31, 2013

100 Basis Points

Excess Spread Financing

Mar. 31, 2014

Two Hundred Basis Points [Member]

Excess Spread Financing

Dec. 31, 2013

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, 2014 and December 31, 2013 (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, 2014
Mortgage servicing rights	$	(75,996	)	$	(156,336	)	$	(113,473	)	$	(217,542	)	$	(56,354	)	$	(111,291	)
December 31, 2013
Mortgage servicing rights	$	(74,681	)	$	(151,899	)	$	(101,590	)	$	(195,445	)	$	(89,958	)	$	(178,669	)

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

$ 29,113

$ 33,156

$ 60,058

$ 68,636

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

21,183

26,492

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

44,586

53,753

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

22,729

29,219

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

$ 40,688

$ 42,611

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Share-based Compensation (Details) (USD $) In Millions, except Share data in Thousands, unless otherwise specified	3 Months Ended		12 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Dec. 31, 2013
Share-based Compensation Arrangement by Share-based Payment Award
Treasury Stock, Shares, Acquired	149		168
Compensation expense, net of forfeitures	$ 2.8	$ 3.0
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Amount to Recognize Remainder of Fiscal Year	9.9
Compensation expense to recognize in 2014	6.8
Compensation expense to recognize in 2015	2.4
Compensation expense to recognize in 2016	$ 0.3
2012 Plan | Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award
Grants	620		307
Weighted average grant date fair value	$ 29.30		$ 37.88

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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, 2014	Mar. 31, 2013
Revenues:
Servicing fee income	$ 240,164	$ 197,596
Other fee income	101,547	44,879
Total fee income	341,711	242,475
Gain on mortgage loans held for sale	127,936	188,587
Total revenues	469,647	431,062
Expenses and impairments:
Salaries, wages and benefits	(156,595)	(134,987)
General and administrative	(156,200)	(125,642)
Loss on foreclosed real estate	600	2,007
Occupancy	7,738	5,935
Total expenses and impairments	321,133	268,571
Other income (expense):
Interest income	43,943	29,608
Interest expense	(156,600)	(92,374)
Loss on interest rate swaps and caps	2,821	1,268
Total other income (expense)	(109,836)	(61,498)
Income before taxes	38,678	100,993
Income tax expense	15,001	38,377
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	23,677	62,616
Net Income (Loss) Attributable to Noncontrolling Interest	(359)	0
Net income	24,036	62,616
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax	(1,963)
Comprehensive Income (Loss), Net of Tax, Attributable to Parent	$ 22,073	$ 62,616
Earnings per share:
Basic earnings per share (in dollars per share)		$ 0.70
Diluted earnings per share (in dollars per share)		$ 0.70
Weighted average shares:
Basic (shares)	89,342	89,293
Dilutive effect of stock awards (shares)	733	649
Diluted (shares)	90,075	89,942
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, 2014

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. In addition, Nationstar as servicer may exercise certain rights on loans serviced for Ginnie Mae to repurchase any individual loan in a Ginnie Mae securitization pool if that loan meets certain criteria, including being delinquent greater than 90 days. For any such loans that we have repurchased from Ginnie Mae pools that we intend to securitize or sell in the future, Nationstar has elected to measure these repurchased residential mortgage loans held for sale at fair value. 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.

Certain agreements permit the servicer or master servicer to repurchase previously transferred loans into a securitization trust

once the transferred collateral meets certain criteria including outstanding UPBs, which are referred to as clean-up call rights. During the third quarter 2013, Nationstar exercised clean up calls on several private-label securitizations for which it was the master servicer. The loans were initially acquired at par and are held for sale. $195.8 million was originally purchased through a clean up call, $158.2 million was sold as of December 31, 2013 and $10.7 million remains outstanding as of March 31, 2014. These loans are carried at the lower of cost or market until sold.

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

	March 31, 2014		December 31, 2013
Mortgage loans held for sale – unpaid principal balance	$	1,668,997	$	2,532,881
Mark-to-market adjustment	72,129		70,499
Total mortgage loans held for sale	$	1,741,126	$	2,603,380

The Company may at times repurchase loans that were previously transferred to Ginnie Mae if that loan meets certain criteria, including being delinquent greater than 90 days. Nationstar has also elected to measure these repurchased loans at fair value.

Nationstar had $45.9 million and $69.5 million mortgage loans held for sale on nonaccrual status at March 31, 2014 and December 31, 2013, respectively. The majority of loans on nonaccrual status are Ginnie Mae repurchased loans that were repurchased solely to modify the loans. Upon completion of the modification the loans are expected to be subject to sale to a GSE. The fair value of loans held for sale on nonaccrual status at March 31, 2014, and December 31, 2013, was approximately $40.2 million and $63.5 million, respectively.

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, 2014			March 31, 2013
Mortgage loans held for sale – beginning balance	$	2,603,380		$	1,480,537
Mortgage loans originated and purchased, net of fees	5,402,862			3,781,116
Proceeds on sale of and payments of mortgage loans held for sale	(6,261,204		)	(3,549,535		)
Transfer of mortgage loans held for sale to held for investment or other assets	(3,912		)	(8,409		)
Mortgage loans held for sale – ending balance	$	1,741,126		$	1,703,709

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

Mortgage loans held for investment, principally subject to nonrecourse debt – Legacy Assets, consist of nonconforming or subprime mortgage loans securitized which serve as collateral for the issued debt. These loans were transferred in 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 recorded an additional $1.4 million in allowance for loan losses for the three months ended March 31, 2014.

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

	March 31, 2014			December 31, 2013
Mortgage loans held for investment, principally subject to nonrecourse debt - Legacy Assets, net – unpaid principal balance	$	297,628		$	305,085
Transfer discount
Accretable	(16,979		)	(17,362		)
Non-accretable	(72,708		)	(74,529		)
Allowance for loan losses	(3,549		)	(2,144		)
Total mortgage loans held for investment, principally subject to nonrecourse debt - Legacy Assets, net	$	204,392		$	211,050

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

	Three months ended March 31, 2014			Year ended December 31, 2013
Accretable Yield
Balance at the beginning of the period	$	17,362		$	19,749
Additions	—			—
Accretion	(784		)	(3,235		)
Reclassifications from (to) nonaccretable discount	401			848
Disposals	—			—
Balance at the end of the period	$	16,979		$	17,362

Nationstar may periodically modify the terms of any outstanding mortgage loans held for investment, principally 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 $0.4 million for the three months ended March 31, 2014 and $0.8 million for the year ended December 31, 2013. Furthermore, Nationstar considers the decrease in principal, interest, and other cash flows expected to be collected arising from the transferred loans as an impairment.

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 the 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, 2014		December 31, 2013
	(in thousands)
Credit Quality by Delinquency Status
Performing	$	210,090	$	218,262
Non-Performing	87,538		86,823
Total	$	297,628	$	305,085
Credit Quality by Loan-to-Value Ratio
Less than 60	$	31,084	$	32,885
Less than 70 and more than 60	16,125		14,633
Less than 80 and more than 70	21,021		23,075
Less than 90 and more than 80	26,179		25,536
Less than 100 and more than 90	26,881		25,686
Greater than 100	176,338		183,270
Total	$	297,628	$	305,085

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 not securitized 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 million 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 amounting to 70% 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 recorded these reverse mortgage loans as reverse mortgage interests on the Company's consolidated balance sheets.

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 whether 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.

Reverse mortgage interests include advances, which are recovered upon the sale of the subject property, and defaulted advances that can be securitized and sold. As of March 31, 2014 and December 31, 2013, Nationstar had $1.6 billion and $1.4 billion, 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, 2014			December 31, 2013
UPB of advances previously securitized by Nationstar	$	1,135,654		$	1,039,645
UPB of advances not securitized	486,195			395,663
Allowance for losses - reverse mortgage interests	(970		)	(802		)
Total reverse mortgage interests	$	1,620,879		$	1,434,506

Nationstar collectively evaluates all reverse mortgage interest assets for impairment. Nationstar recorded a provision for loan losses related to its reverse mortgage interests of $1.0 million for the three months ended March 31, 2014 and $0.8 million for the year ended December 31, 2013.

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Accounts Receivable

3 Months Ended

Mar. 31, 2014

Receivables [Abstract]

Accounts Receivable

Accounts Receivable

Accounts receivable consists primarily of accrued revenues, including accrued servicing fees and commissions, accrued interest on mortgage loans and securitizations and borrower advances made to securitization trusts, and other third parties as required under various servicing agreements related to delinquent loans, which are ultimately repaid from the securitization trusts or the borrower.

Nationstar may acquire servicer advances in conjunction with the acquisition of MSRs. 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 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.

From time to time, Nationstar may enter into agreements with third parties for the sale of these servicer advance receivables at fair value in conjunction with the financing of the related MSR (see Note 12 - Indebtedness).

Accounts receivable consist of the following (in thousands):

	March 31, 2014		December 31, 2013
Servicer advances, net of purchase discount $44,514 and $62,217, respectively	$	3,748,599	$	5,217,769
Reverse mortgage servicer advances	141,628		93,494
Receivables from trusts and agencies	79,395		105,917
Accrued revenues	46,078		57,082
Accrued interest	1,911		6,970
Other	39,866		155,250
Total accounts receivable	$	4,057,477	$	5,636,482

In conjunction with the January 2013 Purchase Agreement, during the third quarter of 2013, Nationstar closed on certain MSRs and servicer advances with a financial institution. In conjunction with this transaction, the Company acquired approximately $3.6 billion of servicer advances. Based on the acquisition date relative fair values of these acquired servicer advances, Nationstar recorded a $60.1 million purchase discount. As of March 31, 2014 and December 31, 2013, Nationstar has a total of $44.5 million and $62.2 million, respectively, in purchase discounts. During the three month period ended March 31, 2014 and 2013, the Company accreted $3.8 million and $6.1 million, respectively, of the purchase discounts from recovered servicer advances into interest income.

During the fourth quarter of 2013, Nationstar sold approximately $2.7 billion of servicer advances to an unaffiliated third party. Consequently, the related purchase discount of $28.1 million was eliminated from Nationstar's consolidated balance sheets. In 2014, Nationstar sold an additional $1.6 billion of servicer advances, and the related purchase discount of $20.7 million was eliminated from Nationstar's consolidated balance sheet (see Note 12 - Indebtedness).

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Commitments and Contingencies

3 Months Ended

Mar. 31, 2014

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

Litigation and Regulatory Matters

Nationstar Inc. and its affiliates are routinely and currently involved in a significant number of legal proceedings concerning matters that arise in the ordinary course of business, 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, including the Fair Debt Collection Practices Act and Making Home Affordable loan modification programs. Additionally, along with others in our industry, the Company is subject to repurchase and indemnification claims and may continue to receive claims in the future, relating to the sale of mortgage loans and/or the servicing of mortgage loans and securitizations. The Company is also subject to legal actions or proceedings related to loss sharing and indemnification provisions of our various acquisitions. Certain of the actual legal actions and proceedings include claims for substantial compensatory, punitive and/or statutory damages or claims for an indeterminate amount of damages. In particular, ongoing and other legal proceedings brought under federal or state consumer protection laws may result in a separate fine for each violation of the laws, which, particularly in the case of class action lawsuits, could result in damages substantially in excess of the amount earned from the underlying activities and that could have a material adverse effect on the Company's liquidity and financial position. The certification of any putative class action could substantially increase the Company's exposure to 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, lender-placed insurance and originations.

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 both 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 $4.9 million and $3.5 millionfor the three months endedMarch 31, 2014, and March 31, 2013, respectively, were included in general and administrative expenses 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 $1.8 million to $6.3 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 11 - Derivative Financial Instruments).

Nationstar has certain MSRs related to approximately $28.9 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, 2014, the Company’s maximum unfunded advance obligation related to these MSRs was approximately $4.2 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 arrangement

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Fair Value Measurements

3 Months Ended

Jun. 30, 2013

Fair Value Disclosures [Abstract]

Fair Value Measurements

Fair Value Measurements

ASC 820, Fair Value Measurements and Disclosures (ASC 820), 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, but 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. Cash, cash equivalents, and restricted cash are classified as Level 1 in the fair value disclosures.

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.

In addition, the Company may acquire mortgage loans held for sale from various securitization trusts for which it acts as

servicer through the exercise of various clean-up call options as permitted through the respective pooling and servicing

agreements. The Company has elected to account for these loans at the lower of cost or market. Nationstar classifies these valuations as Level 2 in the fair value disclosures.

Mortgage Loans Held for Investment, principally subject to nonrecourse debt – Legacy Assets – Nationstar determines the fair value of loans held for investment, principally 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 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, ancillary fees, credit losses and costs to service. 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 on 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. These interests are carried at the lower of cost or market in the financial statements. 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 3 in the fair value disclosures.

REO – Nationstar carries REO at fair value and 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 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 rates that are 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, which are carried at amortized cost, 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, 2014 being mortgage prepayment speeds of 10.5%, average life of 4.7 years, recapture rates of 5.0% to 36.4%, and discount rate of 13.5%. Key assumptions at December 31, 2013, were mortgage prepayment speeds of 10.6%, average life of 4.7 years, recapture rates of 5.0% to 35.8%, and discount rate of 13.9%. Changes in fair value of the excess spread financing are recorded as a component of service fee income in Nationstar's consolidated statement of income and comprehensive income. 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	Recapture Rate
For the three months ended March 31, 2014
Low	5.8%	3.2 years	9.1%	5.0%
High	20.2%	5.7 years	19.0%	36.4%
For the year ended December 31, 2013
Low	4.0%	3.4 years	10.1%	5.0%
High	17.6%	5.7 years	20.0%	35.8%

A positive change in the above assumptions would not necessarily correlate with the corresponding decrease in the net carrying amount of the excess spread financing.

Mortgage Servicing Rights 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, 2014 being advance financing rates of 2.4%, advance recovery rates of 24.3%, and working capital. Changes in fair value of the mortgage servicing rights financing liability are recorded as a component of service fee income in Nationstar’s consolidated statements of income and comprehensive income. 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.

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, 2014
			Recurring Fair Value Measurements
	Total Fair Value		Level 1		Level 2		Level 3
ASSETS
Mortgage loans held for sale(1)	$	1,741,126	$	—	$	1,741,126	$	—
Mortgage servicing rights	2,576,550		—		—		2,576,550
Other assets:
IRLCs	85,069		—		85,069		—
Forward MBS trades	6,738		—		6,738		—
LPCs	867		—		867		—
Interest rate swaps and caps	3,100		—		3,100		—
Total assets	$	4,413,450	$	—	$	1,836,900	$	2,576,550
LIABILITIES
Derivative financial instruments
IRLCs	$	279	$	—	$	279	$	—
Interest rate swaps on ABS debt	569		—		569		—
Forward MBS trades	5,180		—		5,180		—
LPCs	349		—		349		—
Excess spread financing (at fair value)	978,183		—		—		978,183
Mortgage servicing rights financing	39,737		—		—		39,737
Total liabilities	$	1,024,297	$	—	$	6,377	$	1,017,920
			December 31, 2013
			Recurring Fair Value Measurements
	Total Fair Value		Level 1		Level 2		Level 3
ASSETS
Mortgage loans held for sale(1)	$	2,585,340	$	—	$	2,585,340	$	—
Mortgage servicing rights	2,488,283		—		—		2,488,283
Derivative financial instruments:
IRLCs	87,128		—		87,128		—
Forward MBS trades	32,266		—		32,266		—
LPCs	793		—		793		—
Interest rate swaps and caps	3,691		—		3,691		—
Total assets	$	5,197,501	$	—	$	2,709,218	$	2,488,283
LIABILITIES
Derivative financial instruments
IRLCs	$	2,698	$	—	$	2,698	$	—
Interest rate swaps on ABS debt	834		—		834		—
Forward MBS trades	3,305		—		3,305		—
LPCs	1,689		—		1,689		—
Mortgage servicing rights financing	29,874		—		—		29,874
Excess spread financing (at fair value)	986,410		—		—		986,410
Total liabilities	$	1,024,810	$	—	$	8,526	$	1,016,284

⁽¹⁾  Based on the nature and risks of these assets, 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, 2014	Mortgage servicing rights			Excess spread financing			Mortgage Servicing Rights Financing
Beginning balance	$	2,488,283		$	986,410		$	29,874
Transfers into Level 3	—			—			—
Transfers out of Level 3	—			—			—
Total gains or losses
Included in earnings	(78,349		)	(3,369		)	(10,788		)
Included in other comprehensive income	—			—
Purchases, issuances, sales and settlements
Purchases	108,312			—			—
Issuances	58,304			37,859			20,651
Sales	—			—			—
Settlements	—			(42,717		)	—
Ending balance	$	2,576,550		$	978,183		$	39,737

	ASSETS		LIABILITIES
For the year ended December 31, 2013	Mortgage servicing rights		Excess spread financing			Mortgage Servicing Rights Financing
Beginning balance	$	635,860	$	288,089		$	—
Transfers into Level 3	—		—			—
Transfers out of Level 3	—		—			—
Total gains or losses
Included in earnings	58,458		73,333			—
Included in other comprehensive income	—		—			—
Purchases, issuances, sales and settlements
Purchases	1,545,584		—			—
Issuances	248,381		755,344			29,874
Sales	—		—			—
Settlements	—		(130,356		)	—
Ending balance	$	2,488,283	$	986,410		$	29,874

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, 2014
Assets
REO(1)	$	—	$	—	$	37,734	$	37,734	$	600
Total assets	$	—	$	—	$	37,734	$	37,734	$	600
Year ended December 31, 2013
Assets
REO(1)	$	—	$	—	$	45,632	$	45,632	$	(13,316	)
Total assets	$	—	$	—	$	45,632	$	45,632	$	(13,316	)

⁽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, 2014
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3
Financial assets:
Cash and cash equivalents	$	404,073	$	404,073	$	—	$	—
Restricted cash	471,635		471,635		—		—
Mortgage loans held for sale	1,741,126		—		1,741,126		—
Mortgage loans held for investment, principally subject to nonrecourse debt – Legacy assets	204,392		—		—		180,780
Reverse mortgage interests	1,620,879		—		—		1,596,633
Derivative financial instruments	95,773		—		95,733		—
Financial liabilities:
Notes payable	4,591,998		—		—		4,591,998
Unsecured senior notes	2,444,020		2,456,370		—		—
Derivative financial instruments	6,377		—		6,377		—
Nonrecourse debt - Legacy assets	86,529		—		—		96,298
Excess spread financing	978,183		—		—		978,183
Participating interest financing	1,202,252		—		1,167,915		—
Mortgage servicing rights financing liability	39,737		—		—		39,737
	December 31, 2013
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3
Financial assets:
Cash and cash equivalents	$	441,902	$	441,902	$	—	$	—
Restricted cash	592,747		592,747		—		—
Mortgage loans held for sale	2,603,380		—		2,601,520		—
Mortgage loans held for investment, principally subject to nonrecourse debt – Legacy assets	211,050		—		—		180,435
Reverse mortgage interests	1,434,506		—		—		1,405,197
Derivative financial instruments	123,878		—		123,878		—
Financial liabilities:
Notes payable	6,984,351		—		—		6,984,351
Unsecured senior notes	2,444,062		2,489,886		—		—
Derivative financial instruments	8,526		—		8,526		—
Nonrecourse debt - Legacy assets	89,107		—		—		95,345
Excess spread financing	986,410		—		—		986,410
Participating interest financing	1,103,490		—		1,093,747		—
Mortgage servicing rights financing liability	29,874		—		—		29,874

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Fair Value Measurements - Fair Value Assumptions (Details)	3 Months Ended	12 Months Ended
	Mar. 31, 2014	Dec. 31, 2013
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	10.50%	10.60%
Average life	4 years 8 months	4 years 8 months
Discount rate	13.50%	13.90%
Minimum [Member] | 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	5.83%	4.00%
Average life	3 years 2 months	3 years 5 months
Assumption for Fair Value of Assets or Liabilities that relate to Transferor's Continuing Involvement, Other Key Assumption Rate or Value	0.05	0.05
Discount rate	9.10%	10.10%
Maximum [Member] | 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	20.20%	17.60%
Average life	5 years 8 months 12 days	5 years 8 months 12 days
Assumption for Fair Value of Assets or Liabilities that relate to Transferor's Continuing Involvement, Other Key Assumption Rate or Value	0.364	0.358
Discount rate	19.00%	20.00%
Advance financing rates [Domain] | Mortgage Servicing Right [Member]
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, Other Key Assumption Rate or Value	0.024
Advance recovery rates [Domain] | Mortgage Servicing Right [Member]
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, Other Key Assumption Rate or Value	0.243

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Payables and Accrued Liabilities

3 Months Ended

Mar. 31, 2014

Payables and Accruals [Abstract]

Payables and Accrued Liabilities

Payables and Accrued Liabilities

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

	March 31, 2014		December 31, 2013
Payable to servicing and subservicing investors(1)	359,395		359,214
Payable to insurance carriers and insurance cancellation reserves	166,040		164,244
Loans subject to repurchase from Ginnie Mae	134,134		120,736
Accrued interest	82,840		76,303
MSR purchases payable including advances	53,102		135,759
Current income taxes	47,391		35,961
Repurchase reserves	44,478		40,695
Accrued bonus and payroll	34,102		66,755
Other(2)	267,948		308,783
Total payables and accrued liabilities	$	1,189,430	$	1,308,450

⁽¹⁾Payables to servicing and subservicing investors represents amounts due to investors in connection with the loans we service

and are paid from collections of the underlying loans, insurance proceeds or at time of property disposal.

⁽²⁾ Other payables primarily consist of accrued legal and professional fees, capital lease obligations and amounts payable to

securitization trusts.

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Mortgage Loans Held for Sale and Investment - Reverse Mortgage Interests (Details) (USD $)	3 Months Ended	12 Months Ended
	Mar. 31, 2014	Dec. 31, 2013	Feb. 28, 2013
Servicing Assets at Fair Value [Line Items]
Reserve Mortgage, Participants Age	62 years
Principal Amount Outstanding on Loans Managed and Securitized or Asset-backed Financing Arrangement	$ 2,900,000,000
Purchase price paid reverse mortgage			50,200,000
Reverse Mortgage Interest, Unpaid Principal Balance, Securitized	1,135,654,000	1,039,645,000
Reverse Mortgage Interest, Unpaid Principal Balance, Unsecuritized	486,195,000	395,663,000
Provision for Loan Losses, Reverse Mortgage Interest	1,000,000	800,000
Reverse mortgage interests	1,620,879,000	1,434,506,000
Reverse Mortgage Interest, Valuation Allowance	(970,000)	(802,000)
Reverse Mortgages
Servicing Assets at Fair Value [Line Items]
Principal Amount Outstanding on Loans Managed and Securitized or Asset-backed Financing Arrangement	$ 28,900,000,000		$ 100,000,000

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Mortgage Servicing Rights (MSRs)

3 Months Ended

Mar. 31, 2014

Transfers and Servicing [Abstract]

Mortgage Servicing Rights (MSRs)

Mortgage Servicing Rights (MSRs)

MSRs at fair value

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 a securitization that qualifies and meets requirements for sale accounting 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.

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.

The fair value of the MSRs is based upon the present value of the expected future cash flows related to servicing these loans. Nationstar receives a base servicing fee ranging from 0.21% 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, ancillary fees and other assumptions (including servicing costs) that management believes are consistent with the assumptions other major market participants use in valuing the MSRs. 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 of its MSRs to assess the reasonableness of the fair value calculated by the cash flow model.

Certain of the forward loans underlying the MSRs carried at fair value that are owned by Nationstar are credit sensitive in nature and the value of these MSRs are more likely to be affected by changes in credit losses than by 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 by 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, 2014		December 31, 2013
Discount rate	13.69	%	14.17	%
Total prepayment speeds	20.65	%	20.34	%
Expected weighted-average life	4.64 years		4.63 years
Credit losses	20.22	%	22.87	%
Interest Rate Sensitive MSRs	March 31, 2014		December 31, 2013
Discount rate	9.54	%	10.50	%
Total prepayment speeds	10.52	%	8.97	%
Expected weighted-average life	7.06 years		7.88 years
Credit losses	8.05	%	9.12	%

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

	Three months ended March 31, 2014			Year ended December 31, 2013
Fair value at the beginning of the period	$	2,488,283		$	635,860
Additions:
Servicing resulting from transfers of financial assets	58,304			248,381
Purchases of servicing assets	108,312			1,545,584
Changes in fair value:
Due to changes in valuation inputs or assumptions used in the valuation model	(20,645		)	355,586
Other changes in fair value	(57,704		)	(297,128		)
Fair value at the end of the period	$	2,576,550		$	2,488,283
UPB of forward loans serviced for others
Credit sensitive loans	$	264,176,084		$	266,757,777
Interest sensitive loans	62,236,994			56,056,362
Total owned loans	$	326,413,078		$	322,814,139

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, 2014 and December 31, 2013 (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, 2014
Mortgage servicing rights	$	(75,996	)	$	(156,336	)	$	(113,473	)	$	(217,542	)	$	(56,354	)	$	(111,291	)
December 31, 2013
Mortgage servicing rights	$	(74,681	)	$	(151,899	)	$	(101,590	)	$	(195,445	)	$	(89,958	)	$	(178,669	)

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 owns 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.

Nationstar owns the right to service certain reverse mortgage MSRs with an unpaid principal balance of $28.9 billion as of March 31, 2014 and December 31, 2013. Nationstar utilizes a variety of assumptions in assessing the fair value of its servicing assets or liabilities, with the primary assumptions including discount rates, prepayment speeds, home price index, collateral values and the expected weighted average life. At March 31, 2014 and December 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 based on whether Nationstar acquired the related borrower draws from a predecessor servicer or funded borrower draws under its obligation to service the related HECMs subsequent to the acquisition of the rights to service these loans.

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

	Three months ended						Year ended
	March 31, 2014						December 31, 2013
	Assets			Liabilities			Assets			Liabilities
Activity of MSRs at amortized cost
Balance at the beginning of the period	$	14,879		$	82,521		$	10,973		$	83,238
Additions:
Purchase /Assumptions of servicing rights/obligations	—			—			3,980			—
Deductions:
Amortization/Accretion	(649		)	(311		)	(74		)	(717		)
Balance at end of the period	$	14,230		$	82,210		$	14,879		$	82,521
Fair value at end of period	$	38,430		$	68,965		$	29,192		$	63,996

Subserviced loans

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, 2014 and December 31, 2013, the unpaid balances under subservicing arrangements were $26.6 billion and $35.4 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,
	2014		2013
Servicing fees	$	253,685	$	182,709
Ancillary fees	55,416		36,870
Total servicing and ancillary fees	$	309,101	$	219,579

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Other Assets

3 Months Ended

Mar. 31, 2014

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

Other Assets

Other Assets

Other assets consisted of the following (in thousands):

	March 31, 2014		December 31, 2013
Loans subject to repurchase right from Ginnie Mae	$	134,134	$	120,736
Deferred financing costs	66,035		73,030
Goodwill	38,820		38,820
Real estate owned (REO), net	37,734		45,632
Intangible assets	21,180		21,737
Prepaid expenses	16,196		21,993
Receivables from affiliates	5,306		8,861
Collateral deposits on derivative instruments	5,049		25,932
Other	2,667		3,656
Total other assets	$	327,121	$	360,397

For certain loans that Nationstar sold to Ginnie Mae, Nationstar as the issuer 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 a delinquent loan, Nationstar has effectively regained control over the loan, and under GAAP, must re-recognize the loan on its consolidated balance sheets 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 $134.1 million at March 31, 2014 and $120.7 million at December 31, 2013.

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Derivative Financial Instruments

3 Months Ended

Mar. 31, 2014

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 derivative financial instruments 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 derivative financial instruments 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 derivative financial instruments 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 and subsequently recognized in interest expense in the same period the hedged forecast transaction affects earnings. 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.

Historically, Nationstar has entered into interest rate swap agreements to hedge the interest payments associated with its

outstanding floating rate financing servicer advance facilities. Prior to March 31, 2014, certain of these derivatives were

designated as cash flow hedges and were recorded at fair value on Nationstar's balance sheet, with any change in fair value

being recorded as an adjustment to other comprehensive income. On March 31, 2014, the Company dedesignated the

remainder of the interest rate swap agreements, with any further changes in fair value being recorded as a charge to gain or loss

in interest rate swaps and caps in Nationstar's consolidated statement of operations.

Associated with the Company's derivatives is $5.0 million and $25.9 million in collateral deposits on derivative instruments recorded in other assets on the Company's balance sheets as of March 31, 2014 and December 31, 2013, 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, 2014
ASSETS
MORTGAGE LOANS HELD FOR SALE
Loan sale commitments	2015	$	92,972	$	1,481	$	1,474
DERIVATIVE FINANCIAL INSTRUMENTS
IRLCs	2015	2,892,348		85,069		(2,059		)
Forward MBS trades	2015	2,399,461		6,738		(25,528		)
LPCs	2015	171,834		867		74
Interest rate swaps and caps	2018	107,000		3,100		2,556
LIABILITIES
DERIVATIVE FINANCIAL INSTRUMENTS
IRLCs	2015	33,486		279		2,419
Interest rate swaps on ABS debt	2014-2017	394,341		569		265
Forward MBS trades	2015	1,866,675		5,180		(1,875		)
LPCs	2015	95,019		349		1,340
For the year ended December 31, 2013
ASSETS
MORTGAGE LOANS HELD FOR SALE
Loan sale commitments	2014	$	57,965	$	7	$	(14	)
DERIVATIVE FINANCIAL INSTRUMENTS
IRLCs	2014	3,083,131		87,128		(69,856		)
Forward MBS trades	2014	5,425,663		32,266		19,084
LPCs	2014	197,475		793		(460		)
Interest rate swaps and caps	2018	167,000		3,691		544
LIABILITIES
DERIVATIVE FINANCIAL INSTRUMENTS
IRLCs	2014	260,407		2,698		(1,613		)
Interest rate swaps and caps (1)		—		—		1,576
Interest rate swaps on ABS debt	2014-2017	424,269		834		1,012
Forward MBS trades	2014	1,351,870		3,305		8,713
LPCs	2014	204,486		1,689		(1,603		)

⁽¹⁾ In January and June 2013, Nationstar terminated these interest rate swaps.

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Mortgage Servicing Rights - Fair Value Sensitivity Analysis (Details) (Mortgage Servicing Rights, USD $) In Thousands, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013
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	$ (113,473)	$ 101,590
Total Prepayment Speeds, 20% Adverse Change	(217,542)	195,445
Credit Losses, 10% Adverse Change	(56,354)	89,958
Credit Losses, 20% Adverse Change	(111,291)	178,669
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]
Discount Rate, Adverse Change	(75,996)	74,681
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]
Discount Rate, Adverse Change	$ (156,336)	$ 151,899

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Fair Value Measurements - Measured on a Recurring Basis (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013	Dec. 31, 2013 Level 1	Dec. 31, 2012 Level 1	Dec. 31, 2013 Level 2	Dec. 31, 2012 Level 2	Dec. 31, 2013 Level 3	Dec. 31, 2012 Level 3	Mar. 31, 2014 Fair Value, Measurements, Recurring Total Fair Value	Dec. 31, 2013 Fair Value, Measurements, Recurring Total Fair Value	Mar. 31, 2014 Fair Value, Measurements, Recurring Level 1	Dec. 31, 2013 Fair Value, Measurements, Recurring Level 1	Mar. 31, 2014 Fair Value, Measurements, Recurring Level 2	Dec. 31, 2013 Fair Value, Measurements, Recurring Level 2	Mar. 31, 2014 Fair Value, Measurements, Recurring Level 3	Dec. 31, 2013 Fair Value, Measurements, Recurring Level 3	Mar. 31, 2014 Interest Rate Lock Commitments Fair Value, Measurements, Recurring Total Fair Value	Dec. 31, 2013 Interest Rate Lock Commitments Fair Value, Measurements, Recurring Total Fair Value	Mar. 31, 2014 Interest Rate Lock Commitments Fair Value, Measurements, Recurring Level 1	Dec. 31, 2013 Interest Rate Lock Commitments Fair Value, Measurements, Recurring Level 1	Mar. 31, 2014 Interest Rate Lock Commitments Fair Value, Measurements, Recurring Level 2	Dec. 31, 2013 Interest Rate Lock Commitments Fair Value, Measurements, Recurring Level 2	Mar. 31, 2014 Interest Rate Lock Commitments Fair Value, Measurements, Recurring Level 3	Dec. 31, 2013 Interest Rate Lock Commitments Fair Value, Measurements, Recurring Level 3	Mar. 31, 2014 Interest Rate Swaps and Caps Fair Value, Measurements, Recurring Total Fair Value	Dec. 31, 2013 Interest Rate Swaps and Caps Fair Value, Measurements, Recurring Total Fair Value	Dec. 31, 2013 Interest Rate Swaps and Caps Fair Value, Measurements, Recurring Level 1	Mar. 31, 2014 Interest Rate Swaps and Caps Fair Value, Measurements, Recurring Level 2	Dec. 31, 2013 Interest Rate Swaps and Caps Fair Value, Measurements, Recurring Level 2	Dec. 31, 2013 Interest Rate Swaps and Caps Fair Value, Measurements, Recurring Level 3	Mar. 31, 2014 Interest Rate Swap Fair Value, Measurements, Recurring Total Fair Value	Dec. 31, 2013 Interest Rate Swap Fair Value, Measurements, Recurring Total Fair Value	Mar. 31, 2014 Interest Rate Swap Fair Value, Measurements, Recurring Level 1	Dec. 31, 2013 Interest Rate Swap Fair Value, Measurements, Recurring Level 1	Mar. 31, 2014 Interest Rate Swap Fair Value, Measurements, Recurring Level 2	Dec. 31, 2013 Interest Rate Swap Fair Value, Measurements, Recurring Level 2	Mar. 31, 2014 Interest Rate Swap Fair Value, Measurements, Recurring Level 3	Dec. 31, 2013 Interest Rate Swap Fair Value, Measurements, Recurring Level 3	Mar. 31, 2014 Forward Contracts Fair Value, Measurements, Recurring Total Fair Value	Dec. 31, 2013 Forward Contracts Fair Value, Measurements, Recurring Total Fair Value	Mar. 31, 2014 Forward Contracts Fair Value, Measurements, Recurring Level 1	Dec. 31, 2013 Forward Contracts Fair Value, Measurements, Recurring Level 1	Mar. 31, 2014 Forward Contracts Fair Value, Measurements, Recurring Level 2	Dec. 31, 2013 Forward Contracts Fair Value, Measurements, Recurring Level 2	Mar. 31, 2014 Forward Contracts Fair Value, Measurements, Recurring Level 3	Dec. 31, 2013 Forward Contracts Fair Value, Measurements, Recurring Level 3	Mar. 31, 2014 Loan Purchase Commitments [Member] Fair Value, Measurements, Recurring Total Fair Value	Dec. 31, 2013 Loan Purchase Commitments [Member] Fair Value, Measurements, Recurring Total Fair Value	Mar. 31, 2014 Loan Purchase Commitments [Member] Fair Value, Measurements, Recurring Level 1	Dec. 31, 2013 Loan Purchase Commitments [Member] Fair Value, Measurements, Recurring Level 1	Mar. 31, 2014 Loan Purchase Commitments [Member] Fair Value, Measurements, Recurring Level 2	Dec. 31, 2013 Loan Purchase Commitments [Member] Fair Value, Measurements, Recurring Level 2	Mar. 31, 2014 Loan Purchase Commitments [Member] Fair Value, Measurements, Recurring Level 3	Dec. 31, 2013 Loan Purchase Commitments [Member] Fair Value, Measurements, Recurring Level 3
ASSETS
Mortgages loans held for sale			$ 0	$ 0	$ 1,741,126	$ 2,601,520	$ 0	$ 0	$ 1,741,126	$ 2,585,340	$ 0	$ 0	$ 1,741,126	$ 2,585,340	$ 0	$ 0
Mortgage servicing rights - fair value	2,576,550	2,488,283							2,576,550	2,488,283	0	0	0	0	2,576,550	2,488,283
Derivative instruments	95,774	123,878	0	0	95,733	123,878	0	0									85,069	87,128	0	0	85,069	87,128	0	0	3,100			3,100											6,738	32,266	0	0	6,738	32,266	0	0	867	793	0	0	867	793	0	0
Total assets									4,413,450	5,197,501	0	0	1,836,900	2,709,218	2,576,550	2,488,283
LIABILITIES
Derivative financial instruments	6,377	8,526	0	0	6,377	8,526	0	0									279		0		279					2,698	0		2,698	0	569	834	0	0	569	834	0	0	5,180	3,305	0	0	5,180	3,305	0	0	349	1,689	0	0	349	1,689	0	0
Excess spread financing (at fair value)									978,183	986,410	0	0	0	0	978,183	986,410
Mortgage Servicing Rights Liability Resulting from Sale of Servicer Advances, Rights not Accounted for as a Sale	39,737	29,874							39,737						39,737	29,874
Total liabilities									$ 1,024,297	$ 1,024,810	$ 0	$ 0	$ 6,377	$ 8,526	$ 1,017,920	$ 1,016,284

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Mortgage Servicing Rights - Subserviced Loans (Details) (USD $) In Thousands, unless otherwise specified				3 Months Ended
	Mar. 31, 2014	Mar. 31, 2014 Loan Subservicing Agreement	Dec. 31, 2013 Loan Subservicing Agreement	Mar. 31, 2014 Residential Mortgage	Mar. 31, 2013 Residential Mortgage
Subserviced Loans [Line Items]
Principal Amount Outstanding on Loans Managed and Securitized or Asset-backed Financing Arrangement	$ 2,900,000	$ 26,600,000	$ 35,400,000
Servicing and ancillary fees
Servicing fees				253,685	182,709
Ancillary fees				55,416	36,870
Total servicing and ancillary fees				$ 309,101	$ 219,579

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Disclosures Related to Transactions with Affiliates of Fortress Investment Group LLC (Details) (USD $)	1 Months Ended			3 Months Ended	12 Months Ended				3 Months Ended			3 Months Ended							3 Months Ended
	Mar. 31, 2014	Feb. 28, 2014	Jan. 31, 2014	Mar. 31, 2014	Dec. 31, 2013	Mar. 07, 2014	Jan. 30, 2014	Feb. 28, 2013	Mar. 31, 2014 Springleaf	Mar. 31, 2013 Springleaf	Dec. 31, 2013 Springleaf	Mar. 31, 2014 Newcastle	Mar. 31, 2013 Newcastle	Dec. 31, 2013 Newcastle	Mar. 31, 2014 Loan Subservicing Agreement	Dec. 31, 2013 Loan Subservicing Agreement	Mar. 31, 2014 Reverse Mortgages	Feb. 28, 2013 Reverse Mortgages	Mar. 31, 2014 Maximum [Member]	Dec. 31, 2013 Maximum [Member]
Schedule of Transactions with Affiliates of Fortress Investment Group LLC [Line Items]
Principal Amount Outstanding on Loans Managed and Securitized or Asset-backed Financing Arrangement	$ 2,900,000,000			$ 2,900,000,000								$ 800,000,000		$ 1,000,000,000	$ 26,600,000,000	$ 35,400,000,000	$ 28,900,000,000	$ 100,000,000
Contractually Specified Servicing Fees, Late Fees, and Ancillary Fees Earned in Exchange for Servicing Financial Assets									2,000,000	2,100,000		1,100,000	1,200,000
Payment of Servicing Fees in Excess of Contractually Specified Amount												17,100,000
Due from Affiliates	5,306,000			5,306,000	8,861,000				700,000		600,000
Servicing fee, percentage of unpaid principal balance												0.50%							0.50%
Excess spread financing - fair value	978,183,000			978,183,000	986,410,000
Purchase price paid reverse mortgage								50,200,000
Percentage of aquired reverse loans, sold to co-investor								70.00%
Servicer Advances sold to unaffiliated third party	1,600,000,000	800,000,000		1,600,000,000	2,700,000,000	300,000,000	300,000,000													0
Sold MSR Basic Fee Component	10,500,000,000	9,400,000,000	8,300,000,000
Proceeds from the sale of servicer advances	32,200,000	91,400,000	31,000,000	182,871,000
UPB related to sold servicing asset					44,300,000,000															130,100,000,000
Nonrecourse Variable Funding Notes issued by Special Purpose Subsidiaries of NSM					2,100,000,000
Proceeds from Sales Agreement with New Residential					307,300,000
Mortgage Servicing Rights Liability Resulting from Sale of Servicer Advances, Rights not Accounted for as a Sale	$ 39,737,000			$ 39,737,000	$ 29,874,000

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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, 2014	Dec. 31, 2013
Servicing Asset at Fair Value, Amount [Roll Forward]
Fair value at the end of the period	$ 2,576,550	$ 2,488,283
Principal Amount Outstanding of Loans Held-in-portfolio [Abstract]
Principal Amount Outstanding on Loans Managed and Securitized or Asset-backed Financing Arrangement	2,900,000
Mortgage Servicing Rights
Servicing Asset at Fair Value, Amount [Roll Forward]
Fair value at the beginning of the period	2,488,283	635,860
Servicing resulting from transfers of financial assets	58,304	248,381
Purchases of servicing assets	108,312	1,545,584
Changes in fair value due to changes in valuation inputs or assumptions used in the valuation model	(20,645)	355,586
Other changes in fair value	(57,704)	(297,128)
Fair value at the end of the period	2,576,550	2,488,283
Principal Amount Outstanding of Loans Held-in-portfolio [Abstract]
Principal Amount Outstanding on Loans Managed and Securitized or Asset-backed Financing Arrangement	326,413,078	322,814,139
Mortgage Servicing Rights | Credit Sensitive
Principal Amount Outstanding of Loans Held-in-portfolio [Abstract]
Principal Amount Outstanding on Loans Managed and Securitized or Asset-backed Financing Arrangement	264,176,084	266,757,777
Mortgage Servicing Rights | Interest Rate Sensitive
Principal Amount Outstanding of Loans Held-in-portfolio [Abstract]
Principal Amount Outstanding on Loans Managed and Securitized or Asset-backed Financing Arrangement	$ 62,236,994	$ 56,056,362
Minimum
Servicing Assets at Fair Value [Line Items]
Servicing fee, percentage of unpaid principal balance	0.21%
Maximum
Servicing Assets at Fair Value [Line Items]
Servicing fee, percentage of unpaid principal balance	0.50%

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Share-based Compensation Vesting Schedule of Rrestricted Stock (Details) (2012 Plan, Restricted Stock) In Thousands, unless otherwise specified	Mar. 31, 2014
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	977
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	23
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	533
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	249
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	172

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Other Assets (Tables)

3 Months Ended

Mar. 31, 2014

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

Schedule of Other Assets

Other assets consisted of the following (in thousands):

	March 31, 2014		December 31, 2013
Loans subject to repurchase right from Ginnie Mae	$	134,134	$	120,736
Deferred financing costs	66,035		73,030
Goodwill	38,820		38,820
Real estate owned (REO), net	37,734		45,632
Intangible assets	21,180		21,737
Prepaid expenses	16,196		21,993
Receivables from affiliates	5,306		8,861
Collateral deposits on derivative instruments	5,049		25,932
Other	2,667		3,656
Total other assets	$	327,121	$	360,397

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Consolidated Statement of Cash Flows-Supplemental Disclosure (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Supplemental Cash Flow Elements [Abstract]
Interest paid	$ 123.1	$ 51.8
Income taxes paid	$ 0	$ 46.1

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Earnings Per Share

3 Months Ended

Mar. 31, 2014

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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Disclosures Related to Transactions with Affiliates of Fortress Investment Group LLC

3 Months Ended

Mar. 31, 2014

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 has several agreements to act as the loan subservicer for Springleaf Home Equity, Inc., formerly known as American

General Home Equity, Inc., Springleaf General Financial Services of Arkansas, Inc., formerly known as American General

Financial Services of Arkansas, Inc. and MorEquity, Inc. (collectively, Springleaf) totaling $2.9 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, 2014 and 2013 Nationstar recognized revenue of $2.0 million and $2.1 million, respectively in additional servicing and other performance incentive fees related to these portfolios. At March 31, 2014 and December 31, 2013, Nationstar had an outstanding receivable from Springleaf of $0.7 million and $0.6 million, respectively, which was included as a component of accounts receivable.

Nationstar is the loan servicer for three 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 $0.8 billion and $1.0 billion, as of March 31, 2014 and 2013, respectively. For the three months ended March 31, 2014 and 2013, Nationstar received servicing fees and other performance incentive fees of $1.1 million and $1.2 million, respectively.

Additionally, Nationstar has entered into several agreements with certain entities formed by New Residential, in which New Residential and/or certain funds managed by Fortress own an interest (each a "New Residential Entity"), where Nationstar sold to the related New Residential 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 New Residential 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.

In addition, Nationstar has paid $17.1 million to New Residential for delinquent service fees in advance of the contractual due date. This amount will be ultimately netted against future remittances as related to service fee amounts. This amount is

recorded as an offset to outstanding excess spread financing in our financial statements.

The fair value on the outstanding liability related to these agreements was $978.2 million and $986.4 million at March 31, 2014 and December 31, 2013, respectively.

In February 2013, Nationstar acquired certain fixed and adjustable rate reverse mortgage loans with an unpaid principal balance totaling $83.1 million 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 amounting to 70% 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.

In March 2013, certain wholly owned subsidiaries of Nationstar entered into a marketing services agreement to assist in the

development and optimization of their digital marketing initiatives, such as search engine optimization, paid search marketing,

social marketing, display marketing and retargeting with Propel Marketing, a wholly owned subsidiary of GateHouse Media LLC, formerly known as GateHouse Media, Inc. (Gatehouse). Certain of Fortress funds owned approximately 40% of Gatehouse at the time of the marketing services agreement.

In December 2013, we launched a new servicing acquisition structure. Under this structure, we agreed to sell to a joint venture

entity capitalized by New Residential and other investors (collectively, the Purchaser), approximately $2.7 billion of servicer

advances currently outstanding on three pools of residential, non-agency mortgage loans, with the potential for up to $6.3

billion. We also agreed to the sale of the basic fee component of related mortgage servicing rights of approximately $44.3 billion of UPB with potential for up to $130.1 billion of UPB. We will continue to act as named servicer under each servicing agreement until servicing is transferred to the Purchaser. After the transfer of servicing under any servicing agreement to the Purchaser, we will subservice the applicable residential mortgage loans.

While the transfer of the mortgage servicing rights to New Residential is intended to achieve the economic result of a sale of

mortgage servicing rights, we will account for the transactions as financings until the required third party consents are obtained

and ownership, for accounting purposes, of the MSRs transfer to New Residential.

Special purpose subsidiaries of Nationstar previously issued approximately $2.1 billion of nonrecourse variable funding notes

(the Notes) to finance the advances funded or acquired by Nationstar. The Notes were issued through two wholly-owned special purpose entities (the Issuers) pursuant to two servicer advance facilities. Pursuant to the Sale Agreement, New Residential purchased the outstanding equity of the wholly-owned special purpose entities of Nationstar that own the Issuers (the Depositors). On the sale date, New Residential and Nationstar amended and restated the transaction documents for each facility. Under these amended and restated transaction documents for each facility, Nationstar will continue to sell future service advances to New Residential, and New Residential will sell the new servicer advances to the Depositors.

Nationstar received approximately $307.3 million in cash proceeds from the Sale Agreement. The fair value of the outstanding

liability related to the Sale Agreement was $39.7 million at March 31, 2014.

In January 2014, Nationstar entered into two Sale Supplements (together with the Master Servicing Rights Purchase Agreement, collectively the “January Sale Agreement”) with the Purchaser. Under the January Sale Agreement, Nationstar sold to the Purchaser the right to repayment on approximately $277.4 million of servicer advances related to non-agency mortgage loans. In addition, Nationstar also sold the right to receive the basic fee component of the related mortgage servicing rights of approximately $8.3 billion of UPB, in exchange for the Purchaser remitting a portion of the basic fee to Nationstar continuing to service the mortgage loans. Nationstar received approximately $31.0 million in cash proceeds from the January Sale Agreement.

In February 2014, Nationstar entered into a Sale Supplement (together with the Master Servicing Rights Purchase Agreement, collectively the “February Sale Agreement”) with the Purchaser. Under the February Sale Agreement, Nationstar sold to the Purchaser the right to repayment on approximately $756.2 million of servicer advances related to non-agency mortgage loans. In addition, Nationstar also sold the right to receive the basic fee component of the related mortgage servicing rights of approximately $9.4 billion of UPB, in exchange for the Purchaser remitting a portion of the basic fee to Nationstar continuing to service the mortgage loans. Nationstar received approximately $91.4 million in cash proceeds from the February Sale Agreement.

In March 2014, Nationstar entered into a Sale Supplement (together with the Master Servicing Rights Purchase Agreement, collectively the “March Sale Agreement”) with the Purchaser. Under the March Sale Agreement, Nationstar sold to the Purchaser the right to repayment on approximately $299.1 million of servicer advances related to non-agency mortgage loans. In addition, Nationstar also sold the right to receive the basic fee component of the related mortgage servicing rights of approximately $10.5 billion of UPB, in exchange for the Purchaser remitting a portion of the basic fee to Nationstar continuing to service the mortgage loans. Nationstar received approximately $32.2 million in cash proceeds from the March Sale Agreement.

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Commitments and Contingencies - Loan and Other Commitments (Details) (USD $)	Mar. 31, 2014	Feb. 28, 2013
Mortgage Servicing Rights [Line Items]
Principal Amount Outstanding on Loans Managed and Securitized or Asset-backed Financing Arrangement	$ 2,900,000,000
Reverse Mortgages
Mortgage Servicing Rights [Line Items]
Principal Amount Outstanding on Loans Managed and Securitized or Asset-backed Financing Arrangement	28,900,000,000	100,000,000
Unfunded advance obligations	$ 4,200,000,000

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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, 2014	Mar. 31, 2013
Variable Interest Entities and Securitizations [Abstract]
Servicing Fees Received	$ 7,778	$ 6,791
Loan Repurchases	$ 0	$ 0

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Subsequent Events (Details) (USD $)	1 Months Ended			3 Months Ended					1 Months Ended							3 Months Ended				3 Months Ended
	Mar. 31, 2014	Feb. 28, 2014	Jan. 31, 2014	Mar. 31, 2014	Mar. 07, 2014	Jan. 30, 2014	Dec. 31, 2013	May 31, 2013	May 31, 2014 Subsequent Event [Member]	Apr. 30, 2014 Subsequent Event [Member]	May 02, 2014 Subsequent Event [Member]	Mar. 31, 2014 Reverse Mortgages	Feb. 28, 2013 Reverse Mortgages	Mar. 31, 2014 Mortgage Servicing Right [Member]	Dec. 31, 2013 Mortgage Servicing Right [Member]	Mar. 31, 2014 Servicing Segment NSM Advance Receivable Trust (2013) [Member] Notes Payable to Banks	Mar. 31, 2014 Servicing Segment NSM Advance Receivable Trust (2013) [Member] Notes Payable, Other	Apr. 30, 2014 Servicing Segment NSM Advance Receivable Trust (2013) [Member] Notes Payable, Other Subsequent Event [Member]	Dec. 31, 2013 Maximum	Mar. 31, 2014 Maximum Servicing Segment NSM Advance Receivable Trust (2013) [Member] Notes Payable to Banks	Mar. 31, 2014 Maximum Originations Segment Warehouse Facility $400 Million [Member] Notes Payable to Banks	Mar. 31, 2014 Minimum Servicing Segment NSM Advance Receivable Trust (2013) [Member] Notes Payable to Banks	Mar. 31, 2014 Minimum Originations Segment Warehouse Facility $400 Million [Member] Notes Payable to Banks	Mar. 31, 2014 Borrowing Capacity in Period Two [Member] Originations Segment Warehouse Facility $400 Million [Member] Notes Payable, Other	Apr. 30, 2014 Borrowing Capacity in Period Two [Member] Originations Segment Warehouse Facility $400 Million [Member] Notes Payable, Other Subsequent Event [Member]	Mar. 31, 2014 Borrowing Capacity in Period Two [Member] Originations Segment Warehouse Facility $400 Million [Member] Notes Payable, Other Subsequent Event [Member]
Subsequent Event [Line Items]
Servicer Advances sold to unaffiliated third party	$ 1,600,000,000	$ 800,000,000		$ 1,600,000,000	$ 300,000,000	$ 300,000,000	$ 2,700,000,000			$ 600,000,000									$ 0
Sold MSR Basic Fee Component	10,500,000,000	9,400,000,000	8,300,000,000							12,000,000,000
Proceeds from the sale of servicer advances	32,200,000	91,400,000	31,000,000	182,871,000						75,000,000
Residential Mortgage Loan Sale											1,000,000,000
Debt Instrument, Description of Variable Rate Basis																LIBOR
Debt Instrument, Basis Spread on Variable Rate																				5.30%	2.75%	1.15%	2.25%
Debt Instrument, Maximum Borrowing Capacity																								400,000,000	500,000,000	400,000,000
Line of Credit Facility, Maximum Borrowing Capacity																	1,075,000,000.0	500,000,000
Principal Amount Outstanding on Loans Managed and Securitized or Asset-backed Financing Arrangement	2,900,000,000			2,900,000,000								28,900,000,000	100,000,000	326,413,078,000	322,814,139,000
Service Advances, Net	3,748,599,000			3,748,599,000			5,217,769,000
Proceeds from Sale of Loans Held-for-sale									1,100,000,000.000000000
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net								$ 40,303,000			$ 18,000,000

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Guarantor Financial Statement Information (Tables)

3 Months Ended

Mar. 31, 2014

Mar. 31, 2013

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Consolidating Balance Sheets

NATIONSTAR MORTGAGE HOLDINGS INC. CONSOLIDATING BALANCE SHEET MARCH 31, 2014 (IN THOUSANDS)
Assets	Nationstar Inc.		Issuer		Guarantor (Subsidiaries)		Non-Guarantor (Subsidiaries)			Eliminations			Consolidated
Cash and cash equivalents	$	—	$	381,635	$	1,714	$	20,724		$	—		$	404,073
Restricted cash	—		276,320		3		195,312			—			471,635
Accounts receivable	—		4,008,370		2,366		46,741			—			4,057,477
Mortgage loans held for sale	—		1,740,951		—		175			—			1,741,126
Mortgage loans held for investment, principally subject to nonrecourse debt–Legacy Asset, net	—		1,778		—		202,614			—			204,392
Reverse mortgage interests	—		1,620,879		—		—			—			1,620,879
Mortgage servicing rights	—		2,590,780		—		—			—			2,590,780
Investment in subsidiaries	1,009,738		204,241		—		—			(1,213,979		)	—
Property and equipment, net	—		114,832		877		3,597			—			119,306
Derivative financial instruments	—		92,674		—		3,100			—			95,774
Other assets	2,089		618,482		347,849		1,848,978			(2,490,277		)	327,121
Total assets	$	1,011,827	$	11,650,942	$	352,809	$	2,321,241		$	(3,704,256	)	$	11,632,563
Liabilities and stockholders’ equity
Notes payable	$	—	$	2,502,831	$	—	$	2,089,167		$	—		$	4,591,998
Unsecured senior notes	—		2,444,020		—		—			—			2,444,020
Payables and accrued liabilities	—		1,203,396		2,994		14,503			(31,463		)	1,189,430
Payables to affiliates	—		2,182,198		116,495		160,121			(2,458,814		)	—
Derivative financial instruments	—		6,377		—		—			—			6,377
Mortgage servicing liabilities	—		82,210		—		—			—			82,210
Other nonrecourse debt	—		2,220,172		—		86,529			—			2,306,701
Total liabilities	—		10,641,204		119,489		2,350,320			(2,490,277		)	10,620,736
Total equity	1,011,827		1,009,738		233,320		(29,079		)	(1,213,979		)	1,011,827
Total liabilities and equity	$	1,011,827	$	11,650,942	$	352,809	$	2,321,241		$	(3,704,256	)	$	11,632,563

NATIONSTAR MORTGAGE HOLDINGS INC. CONSOLIDATING BALANCE SHEET DECEMBER 31, 2013 (IN THOUSANDS)
	Nationstar Inc.		Issuer (Parent)		Guarantor (Subsidiaries)		Non-Guarantor (Subsidiaries)			Eliminations			Consolidated
Assets
Cash and cash equivalents	$	—	$	422,268	$	3,907	$	15,727		$	—		$	441,902
Restricted cash	—		312,120		3		280,624			—			592,747
Accounts receivable	—		1,569,021		2,582		4,064,879			—			5,636,482
Mortgage loans held for sale	—		2,603,380		—		—			—			2,603,380
Mortgage loans held for investment, principally subject to nonrecourse debt–Legacy Asset, net	—		2,786		—		208,264			—			211,050
Reverse mortgage interests	—		1,434,506		—		—			—			1,434,506
Mortgage servicing rights	—		2,503,162		—		—			—			2,503,162
Investment in subsidiaries	968,027		181,545		—		—			(1,149,572		)	—
Property and equipment, net	—		115,765		855		2,565			—			119,185
Derivative financial instruments	—		120,187		—		3,691			—			123,878
Other assets	21,872		4,683,749		323,346		3,373,048			(8,041,618		)	360,397
Total assets	$	989,899	$	13,948,489	$	330,693	$	7,948,798		$	(9,191,190	)	$	14,026,689
Liabilities and members’ equity
Notes payable	$	—	$	3,311,625	$	—	$	3,672,726		$	—		$	6,984,351
Unsecured senior notes	—		2,444,062		—		—			—			2,444,062
Payables and accrued liabilities	—		1,319,172		5,950		14,791			(31,463		)	1,308,450
Payables to affiliates	—		3,694,782		116,349		4,199,023			(8,010,154		)	—
Derivative financial instruments	—		8,526		—		—			—			8,526
Mortgage servicing liabilities	—		82,521		—		—			—			82,521
Other nonrecourse debt	—		2,119,774		—		89,107			—			2,208,881
Total liabilities	—		12,980,462		122,299		7,975,647			(8,041,617		)	13,036,791
Total equity	989,899		968,027		208,394		(26,849		)	(1,149,573		)	989,898
Total liabilities and equity	$	989,899	$	13,948,489	$	330,693	$	7,948,798		$	(9,191,190	)	$	14,026,689

Consolidating Statements of Operations

NATIONSTAR MORTGAGE HOLDINGS INC. CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) FOR THE THREE MONTHS ENDED MARCH 31, 2014 (IN THOUSANDS)
	Nationstar Inc.		Issuer			Guarantor (Subsidiaries)		Non-Guarantor (Subsidiaries)			Eliminations			Consolidated
Revenues:
Servicing fee income	$	—	$	254,609		$	7	$	—		$	(14,452	)	$	240,164
Other fee income	—		17,320			27,421		56,806			—			101,547
Total fee income	—		271,929			27,428		56,806			(14,452		)	341,711
Gain on mortgage loans held for sale	—		113,889			—		(27		)	14,074			127,936
Total revenues	—		385,818			27,428		56,779			(378		)	469,647
Expenses and impairments:
Salaries, wages and benefits	—		143,358			1,696		11,541			—			156,595
General and administrative	—		128,927			796		26,477			—			156,200
Loss on foreclosed real estate and other	—		(2,185		)	—		2,785			—			600
Occupancy	—		6,983			95		660			—			7,738
Total expenses and impairments	—		277,083			2,587		41,463			—			321,133
Other income (expense):
Interest income	—		39,710			—		3,855			378			43,943
Interest expense	—		(134,478		)	—		(22,122		)	—			(156,600		)
Gain/(Loss) on interest rate swaps and caps	—		265			—		2,556			—			2,821
Gain/(loss) from subsidiaries	39,037		24,446			—		—			(63,483		)	—
Total other income (expense)	39,037		(70,057		)	—		(15,711		)	(63,105		)	(109,836		)
Income before taxes	39,037		38,678			24,841		(395		)	(63,483		)	38,678
Income tax expense/(benefit)	15,001					—		—			—			15,001
Net income/(loss)	24,036		38,678			24,841		(395		)	(63,483		)	23,677
Less: Net loss attributable to noncontrolling interests	—		(359		)	—		—			—			(359		)
Net income/(loss) excluding noncontrolling interests	$	24,036	$	39,037		$	24,841	$	(395	)	$	(63,483	)	$	24,036

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
Loss on foreclosed real estate and other	—		296			—		1,711			—			2,007
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 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 benefit	—		38,377			—		—			—			38,377
Net 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, 2014 (IN THOUSANDS)
	Nationstar Inc.			Issuer			Guarantor (Subsidiaries)			Non-Guarantor (Subsidiaries)			Eliminations			Consolidated
Operating activities:
Net income/(loss)	$	24,036		$	39,037		$	24,841		$	(395	)	$	(63,483	)	$	24,036
Adjustments to reconcile net income/(loss) to net cash provided by/(used in) operating activities:
(Gain)/loss from subsidiaries	(39,037		)	(24,446		)	—			—			63,483			—
Share-based compensation	—			2,809			—			—			—			2,809
Loss on foreclosed real estate and other	—			(2,185		)	—			2,785			—			600
Loss on derivatives including ineffectiveness on interest rate swaps and caps	—			(264		)	—			(2,557		)	—			(2,821		)
Fair value changes in excess spread financing	—			(3,369		)	—			—			—			(3,369		)
Depreciation and amortization	—			8,078			43			671			—			8,792
Fair value changes and amortization/accretion of mortgage servicing rights	—			78,687			—			—			—			78,687
Amortization of mortgage servicing rights liability	—			(10,788		)	—			—			—			(10,788		)
Amortization/(accretion) of premiums/(discounts)	—			10,465			—			(506		)	—			9,959
Gain on mortgage loans held for sale	—			(113,889		)	—			27			(14,074		)	(127,936		)
Mortgage loans originated and purchased, net of fees	—			(5,402,512		)	—			(350		)	—			(5,402,862		)
Proceeds on sale of and payments of mortgage available for sale	—			6,343,251			—			5,388			12,669			6,361,308
Net tax effect of stock grants issued	—			(2,189		)	—			—			—			(2,189		)
Cash settlement on derivative financial instruments	—			—			—			—			—			—
Changes in assets and liabilities:
Accounts receivable, including servicing advances, net	—			(4,030,462		)	216			4,018,139			—			(12,107		)
Reverse mortgage funded advances	—			(197,529		)	—			—			—			(197,529		)
Other assets	19,784			2,532,050			(24,272		)	(2,516,153		)	1,405			12,814
Payables and accrued liabilities	—			(120,082		)	(2,956		)	897			—			(122,141		)
Net cash provided by/(used in) operating activities	4,783			(893,338		)	(2,128		)	1,507,946			—			617,263

	Nationstar Inc.			Issuer			Guarantor (Subsidiaries)				Non-Guarantor (Subsidiaries)			Eliminations		Consolidated
Investing activities:
Property and equipment additions, net of disposals	—			(7,145		)	(65		)		(1,703		)	—		(8,913		)
Purchases of reverse mortgage rights and interests	—			—			—				—			—		—
Deposit on / purchase of forward mortgage servicing rights, net of liabilities incurred	—			(93,092		)	—				—			—		(93,092		)
Loan repurchases from Ginnie Mae	—			—			—				—			—		—
Proceeds from sales of REO	—			23,498			—				—			—		23,498
Proceeds from sale of servicer advances	—			182,871			—			—	—			—		182,871
Acquisition of Greenlight Financial Services and other businesses, net	—			—			—				—			—		—
Net cash used in investing activities	—			106,132			(65		)		(1,703		)	—		104,364
Financing activities:
Issuance of unsecured senior notes	—			—			—				—			—		—
Transfers (to)/from restricted cash, net	—			18,914			—				85,311			—		104,225
Issuance of participating interest financing in reverse mortgage interests	—			103,324			—				—			—		103,324
Issuance of excess spread financing	—			37,859			—				—			—		37,859
Increase/(decrease) in notes payable, net	—			608,403			—				(1,583,559		)	—		(975,156		)
Proceeds from mortgage servicing rights financing	—			20,651			—				—			—		20,651
Repayment of nonrecourse debt–Legacy assets	—			—			—				(2,998		)	—		(2,998		)
Repayment of excess spread financing	—			(42,717		)	—				—			—		(42,717		)
Debt financing costs	—			(2,050		)	—				—			—		(2,050		)
Net tax benefit for stock grants issued	—			2,189			—				—			—		2,189
Contribution to joint venture for noncontrolling interest	—			—			—				—			—		—
Redemption of shares for stock vesting	(4,783		)	—			—				—			—		(4,783		)
Net cash provided by/(used in) financing activities	(4,783		)	746,573			—				(1,501,246		)	—		(759,456		)
Net increase/(decrease) in cash	—			(40,633		)	(2,193		)		4,997			—		(37,829		)
Cash and cash equivalents at beginning of period	—			422,268			3,907				15,727			—		441,902
Cash and cash equivalents at end of period	$	—		$	381,635		$	1,714			$	20,724		$	—	$	404,073

NATIONSTAR MORTGAGE HOLDINGS INC. CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE THREE MONTHS ENDED MARCH 31, 2013 (IN THOUSANDS)
	Nationstar Inc.			Issuer (Parent)			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
Loss on foreclosed real estate and other	—			296			—			1,711			—			2,007
Loss on derivatives including ineffectiveness on interest rate swaps and caps	—			(263		)	—			(1,005		)	—			(1,268		)
Fair value changes in excess spread financing	—			23,891			—			—			—			23,891
Depreciation and amortization	—			3,850			51			—			—			3,901
Fair value changes and amortization/accretion of mortgage servicing rights	—			9,384			—			—			—			9,384
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 available for sale	—			3,682,566			—			3,309			8,984			3,694,859
Net tax effect of stock grants	(2,660		)	—			—			—			—			(2,660		)
Cash settlement on derivatives financial instruments	—			—			—			(129		)	—			(129		)
Changes in assets and liabilities:
Accounts receivable, including servicer advances, net	—			282,727			(5,840		)	(195,793		)	—			81,094
Reverse mortgage funded advances	—			(178,181		)	—			—			—			(178,181		)
Other assets	3,894			(304,127		)	(3,338		)	315,534			(5,477		)	6,486
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			(495,844		)	19,639			112,028			—			(360,283		)

	Nationstar Inc.			Issuer (Parent)			Guarantor (Subsidiaries)			Non-Guarantor (Subsidiaries)			Eliminations		Consolidated
Investing activities:
Property and equipment additions, net of disposals	—			(5,346		)	(521		)	—			—		(5,867		)
Purchase of reverse mortgage rights and interests	—			(50,198		)	—			—			—		(50,198		)
Deposit on/purchase of forward mortgage servicing rights, net of liabilities incurred	—			(266,625		)	—			—			—		(266,625		)
Loan repurchases from Ginnie Mae	—			(8,815		)	—			—			—		(8,815		)
Acquisition of Greenlight Financial Services and other businesses, net	—			(12,500		)	—			—			—		(12,500		)
Proceeds from sales of REO	—			4,157			—			—			—		4,157
Net cash provided by/(used in) investing activities	—			(339,327		)	(521		)	—			—		(339,848		)
Financing activities:
Issuance of unsecured senior notes	—			599,269			—			—			—		599,269
Transfers (to)/from restricted cash	—			(49,111		)	(18,766		)	100,600			—		32,723
Issuance of participating interest financing in reverse mortgage interests	—			166,646			—			—			—		166,646
Issuance of excess spread financing	—			192,730			—			—			—		192,730
Increase/(decrease) in notes payable	—			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 member to noncontrolling interests	—			4,990			—			—			—		4,990
Redemption of shares for stock vesting	(6,554		)	—			—			—			—		(6,554		)
Debt financing costs	—			(9,750		)	—			—			—		(9,750		)
Net cash provided by financing activities	(3,894		)	892,209			(18,766		)	(102,028		)	—		767,521
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

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Consolidated Statements of Shareholders' Equity (USD $) In Thousands, unless otherwise specified	Total	Common Stock	Additional Paid-in Capital	Retained Earnings	Treasury Stock [Member]	Common Shares Held By Subsidiary	Noncontrolling Interest [Member]	Accumulated Other Comprehensive Income (Loss) [Member]
Balance at Dec. 31, 2012	$ 757,682	$ 905	$ 556,056	$ 205,287	$ 0	$ (4,566)
Balance, shares at Dec. 31, 2012		90,460
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Contributions from parent - FIF HE	0
LLC conversion of equity to common shares	1,963	0
LLC conversion of equity to common shares, shares		0
Common stock issuance	10,574	0	10,574
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures		0
Share-based compensation	4,579	3	(3)
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax								1,963
Stock Issued During Period, Shares, Treasury Stock Reissued		0
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition	(6,944)		0
Treasury Stock, Value	(6,944)
Tax related share-based settlement of units by members						0
Excess Tax Benefit (Tax Deficiency) from Share-based Compensation, Financing Activities			4,579
Treasury Stock, activity for period	(6,944)
Treasury Stock, Shares, Retired		(212)
Treasury Stock, Retired, Cost Method, Amount	0	(2)	(4,564)			4,566
Stockholders' Equity Attributable to Noncontrolling Interest	4,990
Proceeds from Noncontrolling Interests	4,990						4,990
Net income	217,054			217,054		0
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	989,898
Balance at Dec. 31, 2013	984,908	906	566,642	422,341	(6,944)	0		1,963
Balance, shares at Dec. 31, 2013		90,330
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures		457
Share-based compensation	0	0	0
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax	(1,963)							(1,963)
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition	2,809		2,809
Treasury Stock, Value	(11,727)
Excess tax benefit from share-based compensation	2,189
Excess Tax Benefit (Tax Deficiency) from Share-based Compensation, Financing Activities	2,189		2,189	0
Treasury Stock, activity for period	(4,783)
Stockholders' Equity Attributable to Noncontrolling Interest	4,631
Proceeds from Noncontrolling Interests	0
Net income	24,036			0
Net Income (Loss) Attributable to Noncontrolling Interest	(359)						(359)
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	1,011,827
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	23,677
Balance at Mar. 31, 2014	$ 1,007,196	$ 906	$ 571,640	$ 446,377	$ (11,727)	$ 0		$ 0
Balance, shares at Mar. 31, 2014		90,787

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Fair Value Measurements - Fair Value by Balance Sheet Line Item (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013	Dec. 31, 2013 Level 1	Dec. 31, 2012 Level 1	Dec. 31, 2013 Level 2	Dec. 31, 2012 Level 2	Dec. 31, 2013 Level 3	Dec. 31, 2012 Level 3	Dec. 31, 2013 Carrying Amount	Dec. 31, 2012 Carrying Amount	Mar. 31, 2014 Fair Value, Measurements, Recurring Level 1	Dec. 31, 2013 Fair Value, Measurements, Recurring Level 1	Mar. 31, 2014 Fair Value, Measurements, Recurring Level 2	Dec. 31, 2013 Fair Value, Measurements, Recurring Level 2	Mar. 31, 2014 Fair Value, Measurements, Recurring Level 3	Dec. 31, 2013 Fair Value, Measurements, Recurring Level 3	Mar. 31, 2014 Fair Value, Measurements, Recurring Estimate of Fair Value, Fair Value Disclosure [Member]	Dec. 31, 2013 Fair Value, Measurements, Recurring Estimate of Fair Value, Fair Value Disclosure [Member]	Mar. 31, 2014 Fair Value, Measurements, Recurring Forward Contracts Level 1	Dec. 31, 2013 Fair Value, Measurements, Recurring Forward Contracts Level 1	Mar. 31, 2014 Fair Value, Measurements, Recurring Forward Contracts Level 2	Dec. 31, 2013 Fair Value, Measurements, Recurring Forward Contracts Level 2	Mar. 31, 2014 Fair Value, Measurements, Recurring Forward Contracts Level 3	Dec. 31, 2013 Fair Value, Measurements, Recurring Forward Contracts Level 3	Mar. 31, 2014 Fair Value, Measurements, Recurring Forward Contracts Estimate of Fair Value, Fair Value Disclosure [Member]	Dec. 31, 2013 Fair Value, Measurements, Recurring Forward Contracts Estimate of Fair Value, Fair Value Disclosure [Member]	Mar. 31, 2014 Fair Value, Measurements, Recurring Loan Purchase Commitments [Member] Level 1	Dec. 31, 2013 Fair Value, Measurements, Recurring Loan Purchase Commitments [Member] Level 1	Mar. 31, 2014 Fair Value, Measurements, Recurring Loan Purchase Commitments [Member] Level 2	Dec. 31, 2013 Fair Value, Measurements, Recurring Loan Purchase Commitments [Member] Level 2	Mar. 31, 2014 Fair Value, Measurements, Recurring Loan Purchase Commitments [Member] Level 3	Dec. 31, 2013 Fair Value, Measurements, Recurring Loan Purchase Commitments [Member] Level 3	Mar. 31, 2014 Fair Value, Measurements, Recurring Loan Purchase Commitments [Member] Estimate of Fair Value, Fair Value Disclosure [Member]	Dec. 31, 2013 Fair Value, Measurements, Recurring Loan Purchase Commitments [Member] Estimate of Fair Value, Fair Value Disclosure [Member]
Financial assets:
Cash and cash equivalents			$ 404,073	$ 441,902	$ 0	$ 0	$ 0	$ 0	$ 404,073	$ 441,902
Restricted cash			471,635	592,747	0	0	0	0	471,635	592,747
Mortgages loans held for sale			0	0	1,741,126	2,601,520	0	0	1,741,126	2,603,380	0	0	1,741,126	2,585,340	0	0	1,741,126	2,585,340
Mortgage loans held for investment, subject to nonrecourse debt - Legacy assets			0	0	0	0	180,780	180,435	204,392	211,050
Reverse mortgage interests			0	0	0	0	1,596,633	1,405,197	1,620,879	1,434,506
Derivative instruments	95,774	123,878	0	0	95,733	123,878	0	0	95,773	123,878									0	0	6,738	32,266	0	0	6,738	32,266	0	0	867	793	0	0	867	793
Financial liabilities:
Notes payable			0	0	0	0	4,591,998	6,984,351	4,591,998	6,984,351
Unsecured senior notes			2,456,370	2,489,886	0	0	0	0	2,444,020	2,444,062
Derivative financial instruments	6,377	8,526	0	0	6,377	8,526	0	0	6,377	8,526									0	0	5,180	3,305	0	0	5,180	3,305	0	0	349	1,689	0	0	349	1,689
Nonrecourse debt - Legacy assets			0	0	0	0	96,298	95,345	86,529	89,107
Excess spread financing - fair value	978,183	986,410	0	0	0	0	978,183	986,410	978,183	986,410
Participating interest financing			$ 0	$ 0	$ 1,167,915	$ 1,093,747	$ 0	$ 0	$ 1,202,252	$ 1,103,490

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Consolidated Statement of Cash Flows-Supplemental Disclosure

3 Months Ended

Mar. 31, 2014

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, 2014 and 2013 was approximately $123.1 million and $51.8 million, respectively. Income taxes paid for the three months ended March 31, 2014 and 2013 was $18,814 and $46.1 million, respectively.

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Mortgage Loans Held for Sale and Investment - Allowance (Details) (Mortgage Loans Held for Investment, USD $) In Thousands, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013
Mortgage Loans Held for Investment
Financing Receivable, Allowance for Credit Losses [Roll Forward]
Balance at the beginning of the period	$ 3,549	$ 2,144
Balance at the end of the period	$ 3,549	$ 2,144

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General and Administrative Expenses (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
General and Administrative Expense [Abstract]
Depreciation and amortization	$ 8,792	$ 3,901
Total General and Administrative Expense	$ 156,200	$ 125,642

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Payables and Accrued Liabilities (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013
Payables and Accruals [Abstract]
MSR purchases payable	$ 53,102	$ 135,759
Servicing Payables	359,395	359,214
Mortgage insurance premiums and reserves	166,040	164,244
Loans subject to repurchase from Ginnie Mae	134,134	120,736
Accrued interest	82,840	76,303
Accrued bonus and payroll	34,102	66,755
Taxes	47,391	35,961
Repurchase reserves	44,478	40,695
Other	267,948	308,783
Total payables and accrued liabilities	$ 1,189,430	$ 1,308,450

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Subsequent Events

3 Months Ended

Mar. 31, 2014

Subsequent Event [Line Items]

Subsequent Events [Text Block]

22. Subsequent Events

In April 2014, Nationstar amended the MRA of the $400 million warehouse facility with a financial institution. Under the terms of the amended agreement, the commitment amount was increased to $500 million.

In April 2014, Nationstar amended the indentures of the variable funding notes that are part of the Nationstar Mortgage advance receivable trust. Under the terms of the amended indenture, the capacity for these notes was decreased to $500 million.

In May 2014, Nationstar entered into Sale Supplements (together with the Master Servicing Rights Purchase Agreement, collectively the “May Sale Agreement”) with the Purchaser. Under the May Sale Agreement, Nationstar sold to the Purchaser the right to repayment on approximately $617 million of servicer advances related to non-agency mortgage loans. In addition, Nationstar also sold the right to receive the basic fee component of the related mortgage servicing rights of approximately $12 billion of UPB, in exchange for the Purchaser remitting a portion of the basic fee to Nationstar for continuing to service the mortgage loans. Nationstar received approximately $75 million in cash proceeds from the April Sale Agreement.

In May 2014, Nationstar entered into a Sale Agreement with a financial institution for the sale of approximately $1.0 billion of residential mortgage loans that are principally insured by the FHA or guaranteed by the VA and received approximately $1.1 billion in cash plus accrued interest on the transaction. Nationstar will continue to act as servicer for the underlying mortgage loans pursuant to a servicing agreement with the financial institution. The transferred loans principally consist of delinquent loans previously pooled into GNMA mortgage-backed securities whereby Nationstar has exercised certain rights as issuer to repurchase loans out of the GNMA securitization pool if that loan meets certain criteria, including being delinquent greater than 90 days. Under the terms of the servicing agreement for these mortgage loans, Nationstar has the right to repurchase any transferred loans that Nationstar, through its remediation efforts as servicer, is able to convert such delinquent mortgage loans into contractually current mortgage loans.

In May 2014, Solutionstar Technology Services LLC (Solutionstar), a subsidiary of Nationstar, entered into an Asset Purchase Agreement to acquire substantially all of the assets of Real Estate Digital, LLC and Cerulean Media Holding Company, LLC (together RED) for $18 million. The acquisition is expected to close in the second quarter of 2014, at which time Solutionstar will assume RED's management team and employees. RED, based in Aliso Viejo, California, is a fee-based real estate services company that provides online marketing, data, transaction management and digital media solutions.

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Indebtedness - Originations Segment Notes Payable (Details) (Originations Segment, USD $)	3 Months Ended
	Mar. 31, 2014
Notes Payable to Banks | Warehouse Facility $750 Million
Debt Instrument
Variable interest rate basis	LIBOR
Notes Payable to Banks | Warehouse Facility $700 Million [Member]
Debt Instrument
Maximum borrowing capacity	$ 350,000,000
Notes Payable to Banks | Warehouse Facility $350 Million Uncomm [Member]
Debt Instrument
Maximum borrowing capacity	350,000,000
Notes Payable to Banks | Warehouse Facility $600 Million
Debt Instrument
Maximum borrowing capacity	300,000,000.0
Notes Payable to Banks | Warehouse Facility $1 Billion (2011) [Member]
Debt Instrument
Maximum borrowing capacity	750,000,000
Variable interest rate basis	LIBOR
Notes Payable to Banks | Warehouse Facility $300 Million (2009)
Debt Instrument
Maximum borrowing capacity	150,000,000
Variable interest rate basis	LIBOR
Interest Rate, LIBOR Plus a spread of	2.50%
Notes Payable to Banks | Warehouse Facility $200 Million Uncommitted [Member]
Debt Instrument
Maximum borrowing capacity	150,000,000
Notes Payable to Banks | Warehouse Facility $75 Million [Member]
Debt Instrument
Variable interest rate basis	LIBOR
Notes Payable, Other | Warehouse Facility $600 Million
Debt Instrument
Maximum borrowing capacity	300,000,000.0
Variable interest rate basis	LIBOR
Notes Payable, Other | Warehouse Facility $108 Million [Member]
Debt Instrument
Maximum borrowing capacity	200,000,000
Interest Rate, LIBOR Plus a spread of	2.75%
Notes Payable, Other | ASAP Plus Facility
Debt Instrument
Variable interest rate basis	LIBOR
Interest Rate, LIBOR Plus a spread of	1.50%
Minimum | Notes Payable to Banks | Warehouse Facility $750 Million
Debt Instrument
Interest Rate, LIBOR Plus a spread of	1.75%
Minimum | Notes Payable to Banks | Warehouse Facility $700 Million [Member]
Debt Instrument
Interest Rate, LIBOR Plus a spread of	2.25%
Minimum | Notes Payable to Banks | Warehouse Facility $1 Billion (2011) [Member]
Debt Instrument
Interest Rate, LIBOR Plus a spread of	2.25%
Minimum | Notes Payable to Banks | Warehouse Facility $400 Million [Member]
Debt Instrument
Interest Rate, LIBOR Plus a spread of	2.25%
Minimum | Notes Payable to Banks | Warehouse Facility $75 Million HCM [Member]
Debt Instrument
Interest Rate, LIBOR Plus a spread of	2.50%
Minimum | Notes Payable to Banks | Warehouse Facility $75 Million [Member]
Debt Instrument
Interest Rate, LIBOR Plus a spread of	3.75%
Minimum | Notes Payable, Other | Warehouse Facility $600 Million
Debt Instrument
Interest Rate, LIBOR Plus a spread of	0.75%
Maximum | Notes Payable to Banks | Warehouse Facility $750 Million
Debt Instrument
Interest Rate, LIBOR Plus a spread of	2.50%
Maximum | Notes Payable to Banks | Warehouse Facility $700 Million [Member]
Debt Instrument
Interest Rate, LIBOR Plus a spread of	2.75%
Maximum | Notes Payable to Banks | Warehouse Facility $1 Billion (2011) [Member]
Debt Instrument
Interest Rate, LIBOR Plus a spread of	3.25%
Maximum | Notes Payable to Banks | Warehouse Facility $400 Million [Member]
Debt Instrument
Interest Rate, LIBOR Plus a spread of	2.75%
Maximum | Notes Payable to Banks | Warehouse Facility $75 Million HCM [Member]
Debt Instrument
Interest Rate, LIBOR Plus a spread of	3.25%
Maximum | Notes Payable to Banks | Warehouse Facility $75 Million [Member]
Debt Instrument
Interest Rate, LIBOR Plus a spread of	4.50%
Maximum | Notes Payable, Other | Warehouse Facility $600 Million
Debt Instrument
Interest Rate, LIBOR Plus a spread of	3.50%
Maximum | Notes Payable, Other | ASAP Plus Facility
Debt Instrument
Maturity length	45 days
Borrowing Capacity in Period One [Member] | Notes Payable, Other | Warehouse Facility $75 Million [Member]
Debt Instrument
Maximum borrowing capacity	75,000,000
Borrowing Capacity in Period Two [Member] | Notes Payable, Other | Warehouse Facility $1 Billion (2011) [Member]
Debt Instrument
Maximum borrowing capacity	1,500,000,000
Borrowing Capacity in Period Two [Member] | Notes Payable, Other | Warehouse Facility $400 Million [Member]
Debt Instrument
Maximum borrowing capacity	400,000,000
Borrowing Capacity in Period Two [Member] | Notes Payable, Other | Warehouse Facility $75 Million HCM [Member]
Debt Instrument
Maximum borrowing capacity	$ 75,000,000

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Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2014

Jun. 30, 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, 2014
			Recurring Fair Value Measurements
	Total Fair Value		Level 1		Level 2		Level 3
ASSETS
Mortgage loans held for sale(1)	$	1,741,126	$	—	$	1,741,126	$	—
Mortgage servicing rights	2,576,550		—		—		2,576,550
Other assets:
IRLCs	85,069		—		85,069		—
Forward MBS trades	6,738		—		6,738		—
LPCs	867		—		867		—
Interest rate swaps and caps	3,100		—		3,100		—
Total assets	$	4,413,450	$	—	$	1,836,900	$	2,576,550
LIABILITIES
Derivative financial instruments
IRLCs	$	279	$	—	$	279	$	—
Interest rate swaps on ABS debt	569		—		569		—
Forward MBS trades	5,180		—		5,180		—
LPCs	349		—		349		—
Excess spread financing (at fair value)	978,183		—		—		978,183
Mortgage servicing rights financing	39,737		—		—		39,737
Total liabilities	$	1,024,297	$	—	$	6,377	$	1,017,920
			December 31, 2013
			Recurring Fair Value Measurements
	Total Fair Value		Level 1		Level 2		Level 3
ASSETS
Mortgage loans held for sale(1)	$	2,585,340	$	—	$	2,585,340	$	—
Mortgage servicing rights	2,488,283		—		—		2,488,283
Derivative financial instruments:
IRLCs	87,128		—		87,128		—
Forward MBS trades	32,266		—		32,266		—
LPCs	793		—		793		—
Interest rate swaps and caps	3,691		—		3,691		—
Total assets	$	5,197,501	$	—	$	2,709,218	$	2,488,283
LIABILITIES
Derivative financial instruments
IRLCs	$	2,698	$	—	$	2,698	$	—
Interest rate swaps on ABS debt	834		—		834		—
Forward MBS trades	3,305		—		3,305		—
LPCs	1,689		—		1,689		—
Mortgage servicing rights financing	29,874		—		—		29,874
Excess spread financing (at fair value)	986,410		—		—		986,410
Total liabilities	$	1,024,810	$	—	$	8,526	$	1,016,284

⁽¹⁾  Based on the nature and risks of these assets, 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, 2014	Mortgage servicing rights			Excess spread financing			Mortgage Servicing Rights Financing
Beginning balance	$	2,488,283		$	986,410		$	29,874
Transfers into Level 3	—			—			—
Transfers out of Level 3	—			—			—
Total gains or losses
Included in earnings	(78,349		)	(3,369		)	(10,788		)
Included in other comprehensive income	—			—
Purchases, issuances, sales and settlements
Purchases	108,312			—			—
Issuances	58,304			37,859			20,651
Sales	—			—			—
Settlements	—			(42,717		)	—
Ending balance	$	2,576,550		$	978,183		$	39,737

	ASSETS		LIABILITIES
For the year ended December 31, 2013	Mortgage servicing rights		Excess spread financing			Mortgage Servicing Rights Financing
Beginning balance	$	635,860	$	288,089		$	—
Transfers into Level 3	—		—			—
Transfers out of Level 3	—		—			—
Total gains or losses
Included in earnings	58,458		73,333			—
Included in other comprehensive income	—		—			—
Purchases, issuances, sales and settlements
Purchases	1,545,584		—			—
Issuances	248,381		755,344			29,874
Sales	—		—			—
Settlements	—		(130,356		)	—
Ending balance	$	2,488,283	$	986,410		$	29,874

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, 2014
Assets
REO(1)	$	—	$	—	$	37,734	$	37,734	$	600
Total assets	$	—	$	—	$	37,734	$	37,734	$	600
Year ended December 31, 2013
Assets
REO(1)	$	—	$	—	$	45,632	$	45,632	$	(13,316	)
Total assets	$	—	$	—	$	45,632	$	45,632	$	(13,316	)

⁽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, 2014
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3
Financial assets:
Cash and cash equivalents	$	404,073	$	404,073	$	—	$	—
Restricted cash	471,635		471,635		—		—
Mortgage loans held for sale	1,741,126		—		1,741,126		—
Mortgage loans held for investment, principally subject to nonrecourse debt – Legacy assets	204,392		—		—		180,780
Reverse mortgage interests	1,620,879		—		—		1,596,633
Derivative financial instruments	95,773		—		95,733		—
Financial liabilities:
Notes payable	4,591,998		—		—		4,591,998
Unsecured senior notes	2,444,020		2,456,370		—		—
Derivative financial instruments	6,377		—		6,377		—
Nonrecourse debt - Legacy assets	86,529		—		—		96,298
Excess spread financing	978,183		—		—		978,183
Participating interest financing	1,202,252		—		1,167,915		—
Mortgage servicing rights financing liability	39,737		—		—		39,737
	December 31, 2013
	Carrying Amount		Fair Value
			Level 1		Level 2		Level 3
Financial assets:
Cash and cash equivalents	$	441,902	$	441,902	$	—	$	—
Restricted cash	592,747		592,747		—		—
Mortgage loans held for sale	2,603,380		—		2,601,520		—
Mortgage loans held for investment, principally subject to nonrecourse debt – Legacy assets	211,050		—		—		180,435
Reverse mortgage interests	1,434,506		—		—		1,405,197
Derivative financial instruments	123,878		—		123,878		—
Financial liabilities:
Notes payable	6,984,351		—		—		6,984,351
Unsecured senior notes	2,444,062		2,489,886		—		—
Derivative financial instruments	8,526		—		8,526		—
Nonrecourse debt - Legacy assets	89,107		—		—		95,345
Excess spread financing	986,410		—		—		986,410
Participating interest financing	1,103,490		—		1,093,747		—
Mortgage servicing rights financing liability	29,874		—		—		29,874

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Share-based Compensation

3 Months Ended

Mar. 31, 2014

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 income and comprehensive income, 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. The following table summarizes information about our restricted stock as of March 31, 2014 under the 2012 Plan (shares in thousands):

	Shares	Weighted Average Grant Date Fair Value	Weighted Average Remaining Contractual Term
Restricted stock outstanding at December 31, 2012	1,293
Grants issued in 2013	307	$37.88	2.0
Forfeited	(56)	$20.46
Shares surrendered to treasury to pay taxes	(168)
Restricted stock outstanding at December 31, 2013	1,376
Grants issued in 2014	620	$29.30	2.9
Forfeited	(14)	$30.10
Shares surrendered to treasury to pay taxes	(149)
Restricted stock outstanding at March 31, 2014	1,833
Restricted stock unvested and expected to vest	977
Restricted stock vested and payable at March 31, 2014	—

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

	2014	2015	2016	2017
Restricted stock expected to vest	23	533	249	172

Total compensation expense, net of forfeitures, for the 2012 Plan for the three months ended March 31, 2014 and 2013 was $2.8 million and $3.0 million, respectively. Nationstar expects to recognize $9.9 million of compensation expense in the last nine months of 2014, $6.8 million in 2015, $2.4 million in 2016 and $0.3 million in 2017.

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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, 2014	Mar. 31, 2013	Dec. 31, 2013
Condensed Financial Statements
Transfer of Mortgage Loans Held for Investment to Reo at Fair Value	$ 1,336	$ 1,454
Share-based Compensation	2,809	2,858
Payments for (Proceeds from) Productive Assets	(8,913)	(5,867)
Payment for Reverse Mortgage Fundings	0	(50,198)
Payments to Acquire Mortgage Servicing Rights (MSR)	(93,092)	(266,625)
Payments to Acquire Businesses, Net of Cash Acquired	0	(12,500)
Proceeds from Sale of Real Estate Owned	23,498	4,157
Proceeds from the sale of servicer advances	182,871
Operating activities
Net income	24,036	62,616	217,054
Adjustments to reconcile net income/(loss) to net cash provided by/(used in) operating activities:
Gain on mortgage loans held for sale	(127,936)	(188,587)
Loss on foreclosed real estate	600	2,007
Gain Loss on Derivatives Including Ineffectiveness on Interest Rate Swaps and Caps	(2,821)	(1,268)
Fair value changes in excess spread financing	(3,369)	23,891
Depreciation and amortization	8,792	3,901
Change in fair value on mortgage servicing rights	78,687	9,384
Amortization of Debt Discount (Premium)	9,959	9,509
Payments for Origination and Purchases of Loans Held-for-sale	(5,402,862)	(3,781,116)
Cost of loans sold and principal payments and prepayments, and other changes in mortgage loans originated as held for sale, net of fees	6,361,308	3,694,859
Changes in assets and liabilities:
Accounts receivable	(12,107)	81,094
Excess Tax Benefit (Tax Deficiency) from Share-based Compensation, Operating Activities	(2,189)	(2,660)
Cash settlement on derivative financial instruments	0	(129)
Reverse funded advances due to securitization	(197,529)	(178,181)
Other assets	12,814	6,486
Intercompany Gains (Losses)	0	0
Increase (Decrease) in Accounts Payable and Accrued Liabilities	(122,141)	(104,947)
Investing activities
Cash Proceeds from assumption of reverse mortgage servicing obligations, net		(50,198)
Repurchases of REO from Ginnie Mae	0	(8,815)
Net cash (used in) / provided by investing activities	104,364	(339,848)
Proceeds from (Repayments of) Restricted Cash, Financing Activities	104,225	32,723
Financing activities
Issuance of Senior Unsecured Notes	0	599,269
Proceeds from Mortgage Backed Securities Notes Payable	103,324	166,646
Proceeds from (Repayments of) Secured Debt	(975,156)	(191,700)
Repayment of Nonrecourse Debt Legacy Assets	(2,998)	(2,612)
Issuance of excess spread financing	37,859	192,730
Repayment of excess servicing spread financing	(42,717)	(20,881)
Proceeds from mortgage servicing rights liability	20,651	0
Payments of Financing Costs	(2,050)	(9,750)
Excess Tax Benefit (Tax Deficiency) from Share-based Compensation, Financing Activities	2,189	2,660
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense	(4,783)	(6,554)
Proceeds from Noncontrolling Interests	0	4,990	4,990
Net Cash Provided by (Used in) Financing Activities	(759,456)	767,521
Net increase / (decrease) in cash and cash equivalents	(37,829)	67,390
Cash and cash equivalents at beginning of period	441,902	152,649	152,649
Cash and cash equivalents at end of period	404,073	220,039	441,902
Net Cash Provided by (Used in) Operating Activities	617,263	(360,283)
Mortgage Servicing Rights Resulting from Sale or Securitization of Mortgage Loans	58,304	31,268
Noncash Settlement Related to Tax Witholding for Share-based Compensation	4,783	6,554
Liabilities Incurred from Purchase of Mortgage Servicing Rights	6,494	365,567
Parent Company
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	24,036	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	0
Loss on foreclosed real estate	0	0
Gain Loss on Derivatives Including Ineffectiveness on Interest Rate Swaps and Caps	0	0
Fair value changes in excess spread financing	0	0
Depreciation and amortization	0	0
Change in fair value on mortgage servicing rights	0	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	0	0
Excess Tax Benefit (Tax Deficiency) from Share-based Compensation, Operating Activities	0
Reverse funded advances due to securitization	0	0
Other assets	19,784	(3,894)
Intercompany Gains (Losses)	(39,037)	(62,616)
Increase (Decrease) in Accounts Payable and Accrued Liabilities	0	2,660
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	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
Payments of Financing Costs	0	0
Excess Tax Benefit (Tax Deficiency) from Share-based Compensation, Financing Activities	0	2,660
Proceeds from Noncontrolling Interests	0
Net Cash Provided by (Used in) Financing Activities	(4,783)	(3,894)
Net increase / (decrease) in cash and cash equivalents	0	0
Cash and cash equivalents at beginning of period	0	0	0
Cash and cash equivalents at end of period	0	0
Net Cash Provided by (Used in) Operating Activities	4,783	3,894
Issuer
Condensed Financial Statements
Share-based Compensation	2,809	2,858
Payments for (Proceeds from) Productive Assets	(7,145)	(5,346)
Payment for Reverse Mortgage Fundings	0	(50,198)
Payments to Acquire Mortgage Servicing Rights (MSR)	(93,092)	(266,625)
Payments to Acquire Businesses, Net of Cash Acquired	0
Proceeds from Sale of Real Estate Owned	23,498	4,157
Proceeds from the sale of servicer advances	182,871
Operating activities
Net income	39,037	62,616
Adjustments to reconcile net income/(loss) to net cash provided by/(used in) operating activities:
Gain on mortgage loans held for sale	(113,889)	(179,603)
Loss on foreclosed real estate	(2,185)	296
Gain Loss on Derivatives Including Ineffectiveness on Interest Rate Swaps and Caps	(264)	(263)
Fair value changes in excess spread financing	(3,369)	23,891
Depreciation and amortization	8,078	3,850
Change in fair value on mortgage servicing rights	78,687	9,384
Amortization of Debt Discount (Premium)	10,465	9,589
Payments for Origination and Purchases of Loans Held-for-sale	(5,402,512)	(3,781,116)
Cost of loans sold and principal payments and prepayments, and other changes in mortgage loans originated as held for sale, net of fees	6,343,251	3,682,566
Changes in assets and liabilities:
Accounts receivable	(4,030,462)	282,727
Excess Tax Benefit (Tax Deficiency) from Share-based Compensation, Operating Activities	(2,189)
Reverse funded advances due to securitization	(197,529)	(178,181)
Other assets	2,532,050	(304,127)
Intercompany Gains (Losses)	(24,446)	(3,133)
Increase (Decrease) in Accounts Payable and Accrued Liabilities	(120,082)	(127,198)
Investing activities
Repurchases of REO from Ginnie Mae	0	(8,815)
Proceeds from (Repayments of) Restricted Cash, Financing Activities	18,914	(49,111)
Financing activities
Issuance of Senior Unsecured Notes	0	599,269
Proceeds from Mortgage Backed Securities Notes Payable	103,324	(166,646)
Proceeds from (Repayments of) Secured Debt	608,403	8,316
Repayment of Nonrecourse Debt Legacy Assets	0	0
Issuance of excess spread financing	37,859	(20,881)
Repayment of excess servicing spread financing	(42,717)
Proceeds from mortgage servicing rights liability	20,651
Payments of Financing Costs	(2,050)	(9,750)
Excess Tax Benefit (Tax Deficiency) from Share-based Compensation, Financing Activities	2,189	0
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense	0
Proceeds from Noncontrolling Interests	0	4,990
Net Cash Provided by (Used in) Financing Activities		892,209
Net increase / (decrease) in cash and cash equivalents	(40,633)	57,038
Cash and cash equivalents at beginning of period	422,268	152,248	152,248
Cash and cash equivalents at end of period	381,635	209,286
Net Cash Provided by (Used in) Operating Activities	(893,338)	(495,844)
Issuer
Operating activities
Net income	39,037
Adjustments to reconcile net income/(loss) to net cash provided by/(used in) operating activities:
Gain on mortgage loans held for sale	(113,889)
Loss on foreclosed real estate	(2,185)
Changes in assets and liabilities:
Intercompany Gains (Losses)	(24,446)
Investing activities
Net cash (used in) / provided by investing activities	106,132
Financing activities
Net Cash Provided by (Used in) Financing Activities	746,573
Cash and cash equivalents at end of period	381,635
Guarantor (Subsidiaries)
Condensed Financial Statements
Share-based Compensation	0	0
Payments for (Proceeds from) Productive Assets	(65)	(521)
Payments to Acquire Mortgage Servicing Rights (MSR)	0	0
Proceeds from Sale of Real Estate Owned	0	0
Operating activities
Net income	24,841	22,728
Adjustments to reconcile net income/(loss) to net cash provided by/(used in) operating activities:
Gain on mortgage loans held for sale	0	0
Loss on foreclosed real estate	0	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	43	51
Change in fair value on mortgage servicing rights	0	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	216	(5,840)
Excess Tax Benefit (Tax Deficiency) from Share-based Compensation, Operating Activities	0
Reverse funded advances due to securitization	0	0
Other assets	(24,272)	(3,338)
Intercompany Gains (Losses)	0	0
Increase (Decrease) in Accounts Payable and Accrued Liabilities	(2,956)	6,038
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	(65)	(521)
Proceeds from (Repayments of) Restricted Cash, Financing Activities	0	(18,766)
Financing activities
Issuance of Senior Unsecured Notes	0	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
Payments of Financing Costs	0	0
Excess Tax Benefit (Tax Deficiency) from Share-based Compensation, Financing Activities	0	0
Proceeds from Noncontrolling Interests	0
Net Cash Provided by (Used in) Financing Activities	0	(18,766)
Net increase / (decrease) in cash and cash equivalents	(2,193)	352
Cash and cash equivalents at beginning of period	3,907	401	401
Cash and cash equivalents at end of period	1,714	753
Net Cash Provided by (Used in) Operating Activities	(2,128)	19,639
Non-Guarantor (Subsidiaries)
Condensed Financial Statements
Share-based Compensation	0	0
Payments for (Proceeds from) Productive Assets	(1,703)	0
Payments to Acquire Mortgage Servicing Rights (MSR)	0	0
Proceeds from Sale of Real Estate Owned	0	0
Operating activities
Net income	(395)	(19,595)
Adjustments to reconcile net income/(loss) to net cash provided by/(used in) operating activities:
Gain on mortgage loans held for sale	27	0
Loss on foreclosed real estate	2,785	1,711
Gain Loss on Derivatives Including Ineffectiveness on Interest Rate Swaps and Caps	(2,557)	(1,005)
Fair value changes in excess spread financing	0
Depreciation and amortization	671	0
Change in fair value on mortgage servicing rights	0	0
Amortization of Debt Discount (Premium)	(506)	(80)
Payments for Origination and Purchases of Loans Held-for-sale	(350)	0
Cost of loans sold and principal payments and prepayments, and other changes in mortgage loans originated as held for sale, net of fees	5,388	3,309
Changes in assets and liabilities:
Accounts receivable	4,018,139	(195,793)
Excess Tax Benefit (Tax Deficiency) from Share-based Compensation, Operating Activities	0
Cash settlement on derivative financial instruments	0
Reverse funded advances due to securitization	0	0
Other assets	(2,516,153)	315,534
Intercompany Gains (Losses)	0	0
Increase (Decrease) in Accounts Payable and Accrued Liabilities	897	8,076
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	(1,703)	0
Proceeds from (Repayments of) Restricted Cash, Financing Activities	85,311	100,600
Financing activities
Issuance of Senior Unsecured Notes	0	0
Proceeds from Mortgage Backed Securities Notes Payable	0	0
Proceeds from (Repayments of) Secured Debt	(1,583,559)	(200,016)
Repayment of Nonrecourse Debt Legacy Assets	(2,998)	(2,612)
Issuance of excess spread financing	0	0
Repayment of excess servicing spread financing	0
Payments of Financing Costs	0	0
Excess Tax Benefit (Tax Deficiency) from Share-based Compensation, Financing Activities	0	0
Proceeds from Noncontrolling Interests	0
Net Cash Provided by (Used in) Financing Activities	(1,501,246)
Net increase / (decrease) in cash and cash equivalents	4,997	10,000
Cash and cash equivalents at beginning of period	15,727	0	0
Cash and cash equivalents at end of period	20,724	10,000
Net Cash Provided by (Used in) Operating Activities	1,507,946	112,028
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	(63,483)	(65,749)
Adjustments to reconcile net income/(loss) to net cash provided by/(used in) operating activities:
Gain on mortgage loans held for sale	(14,074)	(8,984)
Loss on foreclosed real estate	0	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
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	12,669	8,984
Changes in assets and liabilities:
Accounts receivable	0	0
Excess Tax Benefit (Tax Deficiency) from Share-based Compensation, Operating Activities	0
Reverse funded advances due to securitization	0	0
Other assets	1,405	5,477
Intercompany Gains (Losses)	63,483	65,749
Increase (Decrease) in Accounts Payable and Accrued Liabilities	0	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	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
Payments of Financing Costs	0	0
Excess Tax Benefit (Tax Deficiency) from Share-based Compensation, Financing Activities	0	0
Proceeds from Noncontrolling Interests	0
Net Cash Provided by (Used in) Financing Activities	0	0
Net increase / (decrease) in cash and cash equivalents	0	0
Cash and cash equivalents at beginning of period	0	0	0
Cash and cash equivalents at end of period	0	0
Net Cash Provided by (Used in) Operating Activities	0	0
Parent [Member]
Financing activities
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense	(4,783)
Nationstar Mortgage LLC
Adjustments to reconcile net income/(loss) to net cash provided by/(used in) operating activities:
Gain on mortgage loans held for sale		$ (188,587)