Nationstar Earnings Sink on Mark-to-Market Charge

written by
5 · 04 · 17

Quarterly originations declined, the servicing portfolio was lower and earnings plummeted on mark-to-market charges at Nationstar Mortgage Holdings Inc.

Prior to income tax expense, Nationstar’s income was
$3 million during the period that began on Jan. 1, 2017, and concluded on March 31.

The Dallas-based mortgage banking firm released the results, in addition to other financial and operational metrics, in its first-quarter 2017 earnings report.

Earnings sank compared to the preceding quarter, when income was $317 million. The quarter-over-quarter deterioration was due to mark-to-market charges, which swung to a $38 million loss from a $290 million gain in the final quarter of last year.

But pre-tax income swung from a $216 million loss in the first quarter of last year.

During the first-three months of this year, Nationstar originated $4.632 billion in residential loans. Business retreated
from the fourth-quarter 2016, when $5.338 billion in loans were closed. The home lender closed more, however, than the $4.2 billion funded in the first-quarter 2016.

A further decline in mortgage production is likely based on total pull-through adjusted lock volume, which fell to $3.8 billion in the first-quarter 2017 from $4.9 billion in the previous three-month period.

“We right-sized the originations segment to operate efficiently in the current interest rate environment,” Nationstar Chairman and Chief Executive Officer Jay Bray stated in the report.

Nationstar serviced $470 billion as of the conclusion of the most-recent three-month period. The servicing portfolio
was modestly lower than $473 billion as of year-end 2016 but has expanded from $386 billion at the same point in 2016.

“We presently have approximately $155 billion UPB scheduled to board throughout 2017,” the report said.

On its balance sheet were $10.849 billion in reverse mortgage interests and $0.150 billion in mortgage loans held for investment.

Sixty-day delinquency was 4 percent as of March 31, 2017. The rate
improved from 5 percent three months earlier and 6.5 percent previously reported for one year earlier.


Mortgage Daily Staff


Consectetur adipiscing elit dapibus, vulputate in donec tempor ultricies venenatis erat, aliquam posuere urna habitant.