Nationstar's 3Q Net Income Driven by High Recapture Percentage

Nationstar Mortgage Holdings Inc. reported third-quarter net income of $45 million, driven by the large percentage of servicing customers its origination business recaptured.

In the third quarter of 2015 the company lost $66 million.

During the quarter, Nationstar originated $5.5 billion, of which 27% was from servicing customers who came back to the company for their next loan. Many originators see single-digit recapture rates from their servicing portfolio.

The origination business contributed $83 million of pretax income.

Its servicing unit had $31 million of pretax income, which included an $8 million negative mark-to-market adjustment.

Xome, its mortgage services business, contributed $20 million of pretax income for the period.