Nationstar Mortgage Holdings reported net income of $205 million in 2012, including $64 million in the fourth quarter, as it continued to grow its servicing portfolio and origination business.
The Lewisville, Texas, servicing company ended 2012 with $208 billion in servicing rights after doubling the size of its servicing portfolio in one year.
The company expects to own $500 billion in mortgage servicing rights by the end of 2013.
Nationstar chief executive Jay Bray called 2012 a very successful and important year for the company. “We have made great strides in building one of the leading residential mortgage services companies in the United States,” he said.
In early January, Nationstar signed a megadeal with Bank of America to acquire $215 billion in mortgage servicing rights. Half of the
The Fannie Mae, Freddie Mac and Ginnie Mae servicing will be transferred over the next 60 to 90 days. The PLS servicing will be transferred to Nationstar during the second and third quarters.
Executives noted they are looking at selling nonperforming loans in PLS trusts when permitted under the servicing agreements.
Nationstar also originated $7.9 billion in single-family in 2012, up 132% from the prior year. It has retail and correspondent channels and it also refinances loans in its servicing portfolio.
Company officials told investors and analysts Thursday that their recapture rate in refinancing loans in the portfolio is 37% and they want to get it up to 50%. In 2012, Nationstar completed 18,000 HARP refinancings. Executives claim the portfolio is still “rich” in HARP loans.
Retail originations and recapture refinancing have the best margins. On the correspondent side, company officials said they will continue to serve a core group of customers.
