Nationstar Reports Net Income of $19M in 4Q

Nonconforming

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Nationstar Mortgage Holdings managed to improve its annual results despite a sharp decrease in income during the fourth quarter.

The Dallas-based company posted net income of $19 million in the fourth quarter, roughly 83% down from its net income of $111 million during the same period in 2013, according to a news release Thursday. Earnings per diluted share for the fourth quarter were 21 cents.

Revenue in the fourth quarter was also down. Nationstar brought in $449 million in total revenue during the fourth quarter as opposed to the year-prior amount of $504 million.

While the company missed in the fourth quarter, its annual results managed to improve modestly from the year before. Net income for the 2014 fiscal year was $221 million, up from $217 million.

The company’s servicing sector ended 2014 with $327 million in core pretax earnings for the full year, an increase of $11 million. Nationstar’s servicing portfolio, meanwhile, remained “nearly in line” with 2013 at $381 billion, the company said.

The originations segment produced $209 million in earnings for 2014, up 25% from the year before.

Additionally, 28% of all originations in 2014 were purchase money, as opposed to only 17% in 2013, which Nationstar said pointed to a market shift indicating a recovering housing market.

The company’s Solutionstar segment, which provides real-estate technology including HomeSearch.com, increased its income markedly. The segment’s core pretax earnings rose 295% to $133 million in 2014 from only $34 million in 2013.

Nationstar remained upbeat when looking to 2015, having already entered into new commitments to acquire $35 billion of agency servicing assets in the first quarter.

“Heading into 2015, growth prospects for Nationstar are significant, and we are well positioned from a capital, technology and operational perspective,” said Jay Bray, Nationstar’s CEO, in the Feb. 26 release.

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