Walter Investment Management Corp. in Tampa, Fla., dropped to a $31 million net loss on decreasing net servicing fees and a significant fair value charge to mortgage servicing rights.
The company’s loss in the quarter is a significant reversal from a year ago when it made a $17.4 million net profit during this same time period. Losses per share during the first quarter of 2015 totaled 82 cents.
Troubles in the company’s Green Tree Servicing unit contributed to the quarterly loss. Servicing revenue dropped to $143.8 million from $245.6 million a year ago, largely because of an $81.6 million fair value charge and declining servicing fee revenue. The segment overall posted a net loss of $50.7 million.
Walter’s reverse mortgage division reported a net loss overall of $13.5 million. Despite this, the segment’s revenue grew substantially, by 57% to $43.9 million.
The originations segment was the only one to turn a net profit, which increased to $41.8 million from just $14.2 million a year prior. Revenue in this segment was $130.3, 19% higher year-over-year.