Home-lending activity increased at Nationstar Mortgage LLC, though fair-value adjustments to mortgage servicing rights cut deep into earnings.
income tax expense, the mortgage lender suffered a $144 million loss from the period that started on April 1 and concluded on June 30.
The Dallas-based financial services firm delivered the data, along with other operational and financial metrics, in its second-quarter earnings report.
Second-quarter 2016 earnings included a $208 million loss from servicing and a $40 million profit from originations. Servicing losses reflected $253 million in fair-value mark-to-market.
Nationstar funded $5.2 billion in residential loans during the second-quarter 2016.
Business accelerated compared to the first-three months of this year, when $4.2 billion was originated.
Activity also ascended from $4.8 billion in the second-quarter 2015.
First-half 2016 production added up to $9.4 billion.
Second-quarter 2016 originations included $3.3 billion in consumer-direct business.
Refinance share was 74 percent, slipping from 75 percent in the first quarter.
At $369 billion, the servicing portfolio was smaller than $386 billion as of March 31.
The portfolio also declined from mid-2015, when it stood at $404 billion.
But the company’s chief projects growth this year.
“We are positioned to grow our servicing book to over $450 billion by year-end, principally driven by on-boarding the assets of our newest partners Seneca and USAA,” Nationstar Chief Executive Officer Jay Bray stated in the report.
The balance sheet contained $0.159 billion
in mortgage loans held for investment as of mid-year 2016. Mortgage assets were reduced from $0.167 billion in the previous report and $0.182 billion a year previous.
Another $7.463 billion was held in reverse mortgage interests, not quite as much as $7.584 billion at the close of the first quarter but slightly more than $7.425 billion as of the end of the second-quarter 2015.
Nationstar reported a 60-day delinquency rate of 5.7 percent, improving 80 basis points from three months earlier
and sinking from 7.4 percent one year earlier.