Walter's 1Q profits include gain from sale of insurance business
Walter Investment Management Corp. reported first-quarter net income of $1.9 million, compared with a net loss of $172.7 million one year prior.
The first-quarter net income included a $42 million after tax gain from the sale of Green Tree Insurance Agency on Feb. 1.
The company lost $22.2 million in the fourth quarter of 2016.
Walter has moved its corporate headquarters to Fort Washington, Pa., where its Ditech subsidiary is based, from Tampa, Fla., the earnings press release added.
Walter's servicing segment reported $33.2 million of pretax income for the first quarter as compared to a pretax loss of $256.3 million in the prior year. Revenue was $147.8 million for the quarter, the result of a $218 million year-over-year increase in net servicing revenues and fees.
On the originations side, Ditech funded $5 billion of loans for the quarter, similar to its volume for the same quarter in 2016.
There was $10.8 million of pretax income from the originations segment, down from $16.4 billion. Gain on sale fell by $14.3 million because of reduced margins in its consumer-direct business, combined with a shift in production from that channel to the lower margin correspondent and wholesale channels.
The reverse mortgage business had a $5.3 million loss for the quarter.