Over the past year, originations have more than doubled at Nationstar Mortgage Holdings Inc., while the mortgage servicing portfolio has nearly tripled and staffing is up by half. The strong growth continued into the latest quarter.
Residential loan production totaled more than 8,300 loans for $1.8 billion in the three months ended June 30, according to earnings data reported Tuesday. Second-quarter fundings were an all-time record.
Loans originated under the Home Affordable Mortgage Program accounted for 63 percent of second-quarter activity, or $1.1 billion.
Total business improved from the first quarter, when Nationstar originated $1.2 billion in new mortgages. A year earlier, production amounted to just $0.7 billion.
The recapture rate, which reflects refinancing of loans serviced by Nationstar, jumped to 43 percent form the first quarter’s 38 percent and has consistently risen each period since the second quarter of last year when it was 28 percent.
The Lewisville, Texas-based company’s servicing portfolio closed out the second quarter at $193 billion. The portfolio grew from 635,000 mortgages for $103 billion as of as of the end of the first quarter.
The servicing portfolio was only $66 billion as of June 30, 2011.
Portfolio growth reflected $93.3 billion in bulk portfolio acquisitions including $63.7 billion in servicing on traditional mortgages acquired from Aurora Bank FSB; $10.4 billion in agency servicing purchased from Bank of America, N.A.; $9.6 billion in reverse mortgage servicing picked up from BofA; and $9.7 billion in reverse mortgage servicing rights acquired from MetLife Bank, N.A.
“On June 19, Nationstar was named the ‘stalking horse’ bid by the bankruptcy court, and in connection with being named the ‘stalking horse’ bidder, Nationstar and ResCap amended and restated the definitive purchase agreement as of June 28,” the report stated. “Upon closing, expected to occur in January 2013, subject to the auction process, court and other regulatory approvals, the acquisition would result in an estimated pro-forma UPB of $550 billion.”
In addition to the ResCap acquisition, Nationstar said it had a pipeline of more than $300 billion in servicing portfolio acquisitions. Since December 2008, Nationstar said it has completed around 344 servicing portfolio transfers.
Mortgages held for investment finished June at $238 million, falling from $241 million three months earlier and $255 million a year earlier.
Nationstar also reported $310 million in reverse mortgages interests, growing from $148 million at the end of March.
Delinquency of at least 60 days finished June at 11.7 percent, declining 30 basis points from March 31.
Nationstar reported $49 million in income before taxes, falling from the first quarter’s $53 million. A year earlier, the company earned just $2 million.
More than 600 employees were hired in the second quarter, leaving headcount at around 3,500 as of June 30. As of mid-2011, there were approximately 2,300 people working for the company.
Nationstar said it additionally brought on some of the Aurora employees in early July. Staffing currently stands at around 4,000 people.
