This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Nationstar Mortgage Announces Second Quarter 2012 Financial Results

The servicing segment net loss was due to a $20.9 million decrease in the fair value of mortgage servicing rights, an increase of $5.0 million of interest expense resulting from the April bond issuance, and $4.1 million of ramp expenses associated with the Aurora acquisition.

The fair value of mortgage servicing rights decreased in the current quarter by $20.9 million, or $0.23 per share, versus an increase in value of $0.5 million, or $0.01 per share, in the prior quarter. The $20.9 million decrease in fair value in the current quarter is comprised of an $11.1 million, or $0.12 per share pre-tax, mark-to-market decrease, and a $9.8 million, or $0.11 per share pre-tax, decrease in fair value primarily due to portfolio run-off.

Segment AEBITDA increased by 7% in the current quarter to $37.4 million compared to $34.9 million in the first quarter 2012 and was up 60% from $23.4 million in the second quarter of 2011. AEBITDA was higher than both periods due to the expansion of the servicing portfolio.

Nationstar’s average boarded portfolio UPB for the period was $115 billion which was an increase over the prior quarter average of $101 billion. The Nationstar’s 60-day delinquency rate fell by 30 basis points to 11.7% of UPB, helping Nationstar decrease the cost of servicing the portfolio and earn loss-mitigation or performance fees under some service contracts.

Origination

Origination revenue was up 53% compared to the previous quarter, and 304% year-over-year, to $108.1 million for the quarter. This was predominately due to record origination volume - up 52% over the previous quarter to $1.8 billion – and widening spreads between the primary and secondary markets. The origination business allows Nationstar to profitably create servicing assets and extend the life of servicing cash flows. The origination business also helps customers by providing refinance opportunities, while providing loan investors with loss mitigation tools. Nationstar’s recapture rate in the second quarter was 43%, marking six straight quarters of increases. Expenses were higher in the quarter due to increased staffing and origination expenses related to the higher volume of loan originations.

3 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

DOW 18,165.79 +124.25 0.69%
S&P 500 2,122.21 +18.01 0.86%
NASDAQ 5,097.7650 +65.0140 1.29%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs