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.