Home / Daily Dose / Mortgage Revenue Took a Hit in Q1
Print This Post Print This Post

Mortgage Revenue Took a Hit in Q1

Nationstar Holdings reported declining income in Q1. The company's mortgage related revenue fell from $173 million to $144 million, while the firm’s services-related net revenue fell from $616 million to just $283 million.

The market overall saw declines in mortgage revenue with PNC Financial Services Group, Wells Fargo, and  JPMorgan Chase all reporting reductions in mortgage revenue in Q1 2017.

Even Bank of America, which reported a 40 percent increase in net revenue in the quarter, experienced a downturn in mortgage revenue, with total mortgage production of $15.5 billion in Q1, down by about $900 million compared to last year. Average loans and leases were down 20 percent overall. Residential mortgages comprised $69 billion in Q1, down from $87 billion a year ago.

What drove Nationstar in Q1 was its strong servicing segment, which saw a $26 million GAAP pretax income or $65 million adjusted pretax income. Still down from the firm’s strong Q4 2016, but a high-performing segment.

"In the quarter, Servicing delivered solid operational results with 5.6 basis points in profitability,” said Jay Bray, Chairman and CEO. "For the third year in a row, our Servicing operations achieved Fannie Mae’s highest level of recognition for performance, which reflects the dedication of our team members in providing the best possible home loan experience to all of our nearly 3 million customers.

Nationstar’s strong Q4 2016 was a strong end to the year, even stronger than the year before. Bray called 2016 an “incredible year of success,” and the company hopes to maintain that level of success following the transition of their company from Nationstar to Mr. Cooper, its new moniker.

“Looking forward, we believe we have significant growth prospects across all three segments and we continue to evaluate additional ways to increase shareholder value under our new Mr. Cooper brand,” said Bray.

About Author: Seth Welborn

Seth Welborn is a contributing writer for DS News. He is a Harding University graduate with a degree in English and a minor in writing, and has studied abroad in Athens, Greece. An East Texas native, he also works part-time as a photographer.
x

Check Also

DS5 logo

DS5: Industry Experts Discuss the Importance of Virtual Conferences

In a special installment of DS5’s Inside the Industry, we bring you a selection of insights about our recently wrapped Five Star Virtual Conference.

GET YOUR DAILY DOSE OF DS NEWS

Featuring daily updates on foreclosure, REO, and the secondary market, DS News has the timely and relevant content you need to stay at the top of your game. Get each day’s most important default servicing news and market information delivered directly to your inbox, complimentary, when you subscribe.