Specialty servicer Walter Investment Management Corp., Tampa, Fla., earned $5.1 million in the first quarter, a 46% jump from the same period a year ago as its servicing business threw off a large amount of cash flow.
Walter owns Green Tree Servicing, a loan processor whose clients include one of the GSEs.
On a pro-forma EBITDA basis, the company said it earned $59.1 million “driven by a full quarter of contractual fee revenue from the pools boarded in the fourth quarter of 2011 and strong incentive earnings resulting from improvements in client portfolio performance.”
Walter/Green Tree took in incentive and performance fees of $23 million during the quarter, a 27% increase from 4Q.
The company boarded 25,000 accounts with a UPB of $2.2 billion during the quarter, in line with expectations, and finished the period with 1,036,000 accounts with a UPB of $86 billion serviced.
"Our focus on providing enhanced levels of servicing and regulatory compliance to credit-sensitive assets was rewarded with increased incentive and performance fees from our subserviced portfolios,” said company CEO Mark O’Brien.
“We continue to see positive revenue and earnings growth from the first lien pools booked in late 2011, whose performance is exceeding both management's and our client's expectations.”
Walter bought Green Tree last year.
