Nationstar Mortgage posted a net loss of $20 million in the second quarter, the nonbank reported Thursday. It’s Nationstar’s first quarterly net loss in a year.
On an adjusted basis, however, the company saw $42 million in earnings. That adjustment takes into account the value of the company’s mortgage servicing rights. In its earnings release, the nonbank blamed its servicing portfolio’s value loss on falling interest rates, according to a HousingWire report.
However, during the second quarter, Nationstar boarded $52 billion of loans, which it predicts will generate “significantly higher returns on equity due to the limited capital deployed.”
Nationstar projects that it will board an additional $111 billion by the end of the year, HousingWire reported.
Nationstar’s originations business posted $53 million in pretax income, or $56 billion in adjusted pretax income. The company called origination the “most cost-effective” way to acquire new servicing rights.
Nationstar is also preparing to complete its rebranding to Mr. Cooper. The name change is scheduled to become official this month.
“Becoming Mr. Cooper is not about a name change, it is a representation of our journey to reinvent our company from the inside out in order to create an incredible customer experience,” Natiostar Chairman and CEO Jay Bray said. “By establishing a supportive culture that empowers team members to be advocates for customers on their homeownership journey, we can create customers for life.”