Nationstar Mortgage Holdings is still in the red in the second quarter, as mark-to-market adjustments due to interest rate drops more than offset an increase in servicing revenue.
The company reported a $92 million net loss during the second quarter versus net income of $75 million a year ago and a net loss of $132 million the quarter prior. Losses per share totaled 92 cents.
The servicing segment recorded a pretax loss of $158 million, reflecting $221 million in fair value changes. On an adjusted basis that removes these mark-to-market adjustments, the segment posted net income of $64 million before taxes, reflecting the positive effects of operational improvements and a clean-up call.
Nationstar ended the quarter with $369 billion in unpaid principal balance, down from $386 billion in the first quarter. The 60-plus-day delinquency rate also dropped to 5.7% from 6.5% the quarter prior.
In the third quarter, Nationstar expects to board $105 billion in unpaid principal balance, primarily from the portfolios it won from USAA and Seneca Mortgage Servicing.
Nationstar's origination segment's pretax income rose 35% from the first quarter to $54 million. The company's Xome segment more than doubled its net income quarter-to-quarter to $28 million from $11 million, reflecting operational improvements and seasonality.
