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Stop Advancing and the Allocation of Net Liquidation Proceeds

From the examples listed it appears that when Nationstar is involved, as either Servicer or Master Servicer, the Net Interest accrued but not advanced is paid to the Trust at Liquidation. When this occurs, stop advancing will not lower loss severity. We are not certain this occurs in every situation so we will continue to investigate.

Question: Does Net Interest Accrued but not advanced get passed through to Trust at Liquidation?

  1. Servicer: Ocwen (Litton 9/11), Trustee: Deutsche Bank NO

  2. Servicer and Master Servicer: Nationstar (Aurora 7/12-GMAC 4/08), Trustee: Deutsche Bank, Calculation Agent: Citi YES

  3. Servicer: Ocwen (Litton 9/11), Trustee: US Bank NO

  4. Servicer: Ocwen (OneWest 11/13), Master Servicer: Nationstar (Aurora 7/12), Trustee: US Bank YES

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