Nationstar Reports Jump in 4Q Profits
Nationstar Mortgage Holdings in Dallas reported significantly higher net income for the fourth quarter, due to improved revenue in its servicing segment.
The company's net income rose 151% year over year to $198 million in the fourth quarter. Diluted earnings per share were $2.01, up from 73 cents in the fourth quarter of 2015.
Total revenue for Nationstar's servicing segment rose to $528 million from $332 million a year earlier. The company ended 2016 with a record 2.9 million servicing customers, according to Nationstar CEO and Chairman Jay Bray.
The company's originations segment reported $163 million in total revenue, down from $225 million in the third quarter due to the rise in interest rates and seasonality. Still, the figure was up from the $158 million in total revenue the segment earned during the fourth quarter of 2015.
Nationstar's Xome segment's total revenue dipped slightly to $97 million from $97.7 million in the previous year.
Total expenses for the quarter dropped 1.1% year over year to $412 million.