Nationstar Finishes Strong

Nationstar Mortgage Holdings reported significant revenue improvements over the previous quarter, and ended the year stronger than the previous on Wednesday.

“Nationstar had an incredible year of success in 2016,” said Jay Bray, Chairman and Chief Executive Officer. “We increased servicing profitability BPS over 87 percent while ending the year with a record 2.9 million customers.

“We enter 2017 with solid momentum and the opportunity to welcome almost 1 million new customers to our servicing platform as we continue on our journey to reinvent the mortgage experience for the customer and enhance our leadership role in residential servicing,” Bray continued

Q4 2016 was worth $2.01 per diluted share and net income reached $198 million, a significant gain over Q3 2016’s $45 million and $0.46 per diluted share. Overall, Nationstar ended the year with a total revenue of $789 million, a 37 percent increase over last year.

The servicing segment finished the year with a net revenue of $528 million, $58 million for the quarter. Adjusted pretax income experienced a 49 percent improvement over the previous quarter. According to the report, Nationstar, “continued to implement technology and process initiatives to drive overall servicing profitability higher.”

UPB at the end of Q4 was $473 billion, topping Q3 2016’s $453 billion. Nationstar boarded $161 billion of loans, including $95 billion of subserviced loans in 2016 in order to generate higher margin and significantly higher return on equity. They plan to board $144 billion in loans in 2017.

In Q4, the originations segment earned $43 million in pretax income, and additionally posted a $223 million income for 2016. Originations increased customer recapture to 29 percent. For 2017, the originations segment plans to expand government lending and streamlined offerings, and further reduce operating costs.

Xome, Nationstar’s online-only real estate service, sold 3,687 homes in Q4 2016, around 11 percent less than Q3 2016’s 4,061 homes. Xome finished the year with a total of 17,319 homes sold unable to beat 2015’s 20,640.

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