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Nationstar Mortgage Holdings Records 3Q Loss

By Lalita Clozel, National Mortgage News

Nationstar Mortgage Holdings took $66 million in losses for the third quarter, compared to a $75 million gain in the second quarter.

The company's results reflected steep interest-rate-driven declines in the market value of assets on its balance sheet and other adjustments during the quarter.

Nationstar's earnings also were partly driven by a 36% decline in revenue to $397 million. Income from Xome, the company's automated mortgage origination platform, dropped 11% to $109 million. The company attributed the decrease to lower property sales and noted that it continued to make technology, marketing and corporate infrastructure investments related to the platform.

Servicing revenue fell 67% to $108 million. Origination income revenue rose 6.1% to $180 million. Total assets declined 1.6% to $17.3 billion.

The company in its Nov. 3 earnings report also noted that it would begin subservicing $50 billion in new mortgage assets, made up mostly of conforming loans, pursuant to a contract awarded by an unnamed financial services organization in October. The servicing transfer is scheduled to begin in March 2016. The company also noted a new business initiative with the Mortgage Partnership Finance program.

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