Nationstar Originations and Servicing Down, Income Up

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5 · 08 · 14

Quarterly business was lower at Nationstar Mortgage LLC — though the drop was less than that of its peers — and a further decline is likely. The servicing portfolio contracted, but delinquency and income improved.

Residential loan originations from Jan. 1 through March 31 came in at $4.7 billion, parent Nationstar Mortgage Holdings Inc. said in its earnings report.

Business fell from $5.5 billion closed during the fourth-quarter 2013.

In the same three-month period last year, the Lewisville, Texas-based company originated $3.4 billion.

“Nationstar’s origination volume decreased by 13 percent from the fourth quarter 2013, outperforming bank peers and industry forecasts, which on average decreased by 28 percent,” the report said. However, a manual calculation of production indicates that volume was actually down 15 percent.

Retail business represented $3.3 billion of the latest activity, and correspondent acquisitions accounted for $1.4 billion.

The pipeline of loan applications was $3.5 billion, tumbling from $5.0 billion at the end of the fourth quarter. The locked pipeline was $2.7 billion, shrinking from $4.0 billion..

Nationstar said it serviced $384 billion as of the end of March, off from $391 billion at the end of last year and $312 billion at the same point in 2013.

The investment portfolio included $0.204 billion in mortgages, off from $0.211 billion three months earlier and $0.236 billion 12 months earlier.

Also on the balance sheet were $1.621 billion in “reverse mortgage interests,” climbing from $1.435 billion at the end of December.

Mortgage delinquency of at least 60 days fell to 11.1 percent from 11.9 percent in the fourth quarter. The 60-day rate was 13.8 percent as of March 31, 2013.

Income prior to taxes was $39 million, swinging from an $86 million fourth-quarter loss but declining from a $101 million profit in the first-quarter 2013.

The report said that Nationstar has agreed to acquire Real Estate Digital, a fee-based real estate services company that provides online marketing, data, transaction management and digital media solutions. The deal is expected to close in the second quarter.

Mortgage Expert

Mortgage Daily Staff



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