Nationstar Lags Industry Gain in Originations

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MORTGAGE EXPERT
8 · 06 · 14

While most of the rest of the industry enjoyed a nice quarter-over-quarter gain in home loan production, business at Nationstar Mortgage LLC slowed. Its mortgage servicing portfolio was also lower.

From April 1 through June 30, residential loan originations were $4.4 billion, parent Nationstar Mortgage Holdings Inc. reported in its second-quarter earnings data.

Mortgage fundings fell from the first quarter, when $4.7 billion was closed. That brought first-half 2014 volume to $9.1 billion.

Nationstar lagged the rest of the sector. Based on production data tracked by Mortgage Daily so far for the second quarter, the rest of the industry has seen a cumulative 24 percent increase from the first quarter.

Mortgage production at the Lewisville, Texas-based company tumbled from $7.1 billion in the second-quarter 2013.

Refinance share during the most recent period was 70 percent, off from 72 percent three months prior. Consumer-direct fundings fell to $2.9 billion from $3.3 billion.

“The majority of volume in the quarter came from the consumer direct channel, which includes recapture and Greenlight,” the report stated. “Correspondent volume was flat quarter over quarter, and Nationstar continues to view the correspondent channel as a cost-effective way to acquire servicing.”

Applications jumped 43 percent from the first quarter to the second quarter, pointing to stronger third-quarter business. But the locked pipeline was down 10 percent.

Nationstar reported a servicing portfolio of $378.4 billion. The portfolio was reduced from $384.4 billion three months earlier but has grown from $318 billion as of mid-year 2013.

Delinquency of at least 60 days on the servicing portfolio was 11.0 percent, 10 basis points less than as of March 31. The past-due rate was down 80 BPS from June 30, 2013.

The mortgage investment portfolio was $0.199 billion, not much different than $0.204 billion as of March 31 but down from $0.257 billion as of the same date in 2013.

Pre-tax income shot up to $106 million from the first quarter’s $39 million but plunging from $199 million in the second-quarter 2013.

Mortgage Expert

Mortgage Daily Staff

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