Mortgage Daily Logo
mortgage news from industry experts

Nationstar Originations Shrink, Servicing Grows

For the fifth time in a row, quarterly production at Nationstar Mortgage LLC regressed from the preceding three months. While servicing grew, overall profitability was lean.

From Oct. 1 to Dec. 31, residential home loan production reached $3.6 billion, according to fourth-quarter earnings report data provided by parent-company Nationstar Mortgage Holdings Inc.

This activity fell short of the $4.1 billion originated in the third quarter and the $5.5 billion funded during the last three months in 2013.

Consumer direct accounted for $2.5 billion of recent quarterly production totals.

The total application volume of $3.2 billion was shy of the $3.5 billion from the third quarter, but the locked pipeline tally at $2.8 billion rose ahead of the prior period’s $2.4 billion.

In total, loan production for all of last year equaled $16.9 billion, a decline from the $23.8 billion reached a year earlier.

As of Dec. 31, Nationstar serviced $381 billion.

Despite the mortgage servicing portfolio increasing from $378 billion as of Sept. 30, it fell from $391 billion as of the end of 2013.

The company’s investment portfolio showed $0.192 billion in mortgages, a drop down from $0.195 billion at the end of the third quarter and $0.211 billion at the end of the prior year’s fourth quarter.

The balance sheet also included $2.384 billion in reverse mortgage interests, growing from $1.957 billion as of the last day in September and $1.528 billion as of the last day in December 2013.

The 60-day or more delinquency rate trimmed to 9.9 percent from 10.6 in the third quarter. As of Dec. 31, 2013, the delinquency rate was 11.8 percent.

Before taxes, Nationstar earned $32 million during the last three months in 2014. During the same time period a year earlier, the company realized an $86 million loss.

Still, recent profit was much lower than the $110 million earned from the first day in July to the last day in September.

Pre-tax earnings of $286 million for the full year also garnered lower profit than the $346 million posted for 2013.

The earnings report said Nationstar has entered into new commitments to acquire, primarily from two counter-parties, $35 billion of agency servicing assets. The commitments are expected to close in the first quarter.

Popular posts

How Long Does It Take to Refinance a Mortgage
How Long Does It Take to Refinance a Mortgage

So, you’re interested in refinancing your mortgage. Maybe you want some extra capital to do that home project you’ve always dreamed of, interest rates are nearing record lows, or you want to start consolidating debt. Regardless of the motivation behind the refinance,...

How Does Refinancing a Mortgage Work
How Does Refinancing a Mortgage Work

A home purchase is considered an investment, and a robust one at that. Savvy owners are constantly looking for new ways to reduce debt, save money, pay less in interest, and ultimately build equity. Refinancing is one way to leverage your investment and do just that....

What Does It Mean to Refinance Your Home
What Does It Mean to Refinance Your Home

You can think of refinancing your mortgage as a debt redo. Essentially, you’ll swap out the existing loan for a new one - ideally with better terms and conditions. Only this time it could help you save money on high mortgage payments, rather than just borrow it....

Setting up the Utilities in My New House
Setting up the Utilities in My New House

All the tedious, time-consuming home closing documents have been signed, sealed, and delivered. Your belongings are packed into what seems like a million boxes and you have a solid plan to haul all your existing furniture to the new place. Just as your boxes and...

When Is My First Mortgage Payment Due?
When Is My First Mortgage Payment Due?

Navigating your way through a brand new mortgage loan can be a difficult task, especially for first time homeowners. After handing over a large sum of money for the down payment and closing costs, it’s important to pay attention to the timing of your first mortgage...


Don’t worry, we don’t spam

calculate your monthly mortgage payment

Related Topics

Helpful Links

Daily mortgage rate trends

Best mortgage lenders

First-time homebuyers programs by state

Loan limits by state

Types of mortgages

APR vs interest rate

Understanding PMI

Related Posts