Nationstar Mortgage Holdings Inc. is so far the only home lender to report an increase from the second quarter in mortgage production. The company however, is eliminating more than a thousand jobs.
In the quarter ended Sept. 30, Nationstar Mortgage LLC originated $8.0 billion, according to earnings data released Thursday.
Business increased from the second quarter, when $7.1 billion in residential loans were reportedly funded.
The Lewisville, Texas-based firm is so far the only mortgage lender tracked by Mortgage Daily that has reported an increase in mortgage production between the second and third quarters of this year.
During the third-quarter 2012, Nationstar funded just $1.82 billion.
Year-to-date Sept. 30, 2013, originations amounted to $18.5 billion.
The consumer-direct channel generated $4.5 billion of third-quarter 2013 volume, while another $1.5 billion came from the wholesale channel and $2.0 billion was acquired through the correspondent channel.
New business is likely to contract, however, given the sale of Nationstar’s wholesale lending business to Stonegate Mortgage Corp., which is expected to close this month. The wholesale channel accounted for more than a quarter of Nationstar’s year-to-date business.
Nationstar said it serviced $375 billion in residential loans as of Sept. 30. The servicing portfolio increased from $318 billion as of June 30 and $197.6 billion as of Sept. 30, 2012.
“Nationstar completed the acquisition and boarding of a $62 billion PLS portfolio from BofA and the remaining portfolio is expected to close and board over the next 60 days,” the report said. “Additionally, Nationstar has entered into definitive agreements with two financial institutions to acquire servicing portfolios totaling $25 billion, of which $15 billion was previously sub-serviced by Nationstar.”
Mortgage servicing rights on around $400 billion in loans are currently in the pipeline of potential purchases.
Mortgage loans held for investment were $0.213 billion, off from $0.257 billion at the end of the second quarter. Reverse mortgage interests grew to $1.226 billion from $1.086 billion.
Earnings before taxes at the holding company fell to $132 million from $199 million but have increased from $80 million during the same period last year.
As a result of the sale of the wholesale lending unit and a consolidation of offices, headcount is being reduced by around 1,100 employees. However, some of the impacted employees will join Stonegate.
At last count on July 31, Nationstar said its staff stood at more than 7,700 employees.
