Nationstar Mortgage Holdings Inc. funded twice as much in mortgage volume last year than it did in 2011, and this year’s production is projected to double again. The company’s mortgage servicing portfolio is on a similar trajectory. Nationstar now provides appraisal and closing services.
From Oct. 1, 2012, through Dec. 31, 2012, the Lewisville, Texas-based firm originated $3.081 billion in residential loans, according to fourth-quarter earnings data reported Thursday.
Business jumped from the third quarter, when mortgage production amounted to $1.82 billion. An even bigger increase in new loan fundings was recorded from the fourth-quarter 2011, when Nationstar originated $1.1 billion in home loans.
Correspondent mortgage production accounted for 18 percent of volume during the final three months of 2012.
Full-year mortgage originations totaled $7.9 billion, more than doubling the $3.4 billion in production during all of 2011.
This year’s mortgage production is expected to exceed $16 billion, according to an investor presentation.
The mortgage servicing portfolio finished 2012 at 1.1 million loans for $208 billion, increasing from $197.6 billion at the end of September.
The servicing portfolio exceeded 645,000 residential loans for $106.6 billion as of Dec. 31, 2011.
The earnings report indicated that the portfolio has climbed past $300 billion as of Feb. 13, 2013.
After completing the pending acquisition of mortgage servicing rights on $215 billion in loans from Bank of America, the pro-forma servicing portfolio will be more than 2.5 million loans with an aggregate principal balance of $423 billion.
In an investor phone call, Nationstar Chief Executive Officer Jay Bray said that the servicing portfolio could exceed $500 billion by the end of this year.
An investor presentation indicates that the bulk pipeline is $300 billion, while around $2 trillion in servicing portfolios have transfer potential. Nationstar is targeting between $25 billion and $50 billion in annual flow servicing.
Mortgages held for investment were mostly unchanged from Sept. 30 at $0.239 billion as of Dec. 31 but have been trimmed from $0.243 billion at the end of 2011.
Delinquency of at least 60 days was 15.3 percent at the end of 2012, worsening from 15.1 percent at the end of September. Nationstar blamed the deterioration on fourth-quarter boardings of higher delinquency portfolios.
Income before taxes climbed to $94 million from the third quarter’s $80 million and from $15 million in the same period last year.
Staffing was reported at more than 4,900 employees as of the announcement date. Mortgage Daily estimates that Nationstar finished 2012 with 4,700 employees.
Headcount grew from 4,100 people at the end of the third quarter and 2,599 at the end of 2011.
Nationstar announced the acquisition of Equifax Settlement Services on Feb. 7 and re-branded it Solutionstar Settlement Services. The new unit provides appraisal, title and closing services.
