Nationstar Mortgage Holdings Q4 Profit Soars - Update

(RTTNews.com) - Residential mortgage services firm Nationstar Mortgage Holdings Inc. ( NSM ) Thursday reported a sharp rise in fourth-quarter profit, as revenues more than doubled with a significant growth in servicing fee income.

In the fourth quarter, the company's net income climbed to $63.76 million or $0.71 per share from $14.89 million or $0.21 per share in the prior year.

Total revenues grew 180 percent to $332.61 million from $118.56 million in the same quarter last year.

Servicing fee income surged to $145.5 million from $67.78 million a year earlier. Gain on mortgage loans held for sale increased to $175.05 million from $35.58 million in the prior year.

Jay Bray, chief executive officer of the company said, "Each quarter this year, we consistently achieved meaningful sequential growth in revenue and earnings while delivering high returns to our shareholders. We invested in infrastructure and built capacity in preparation for our landmark servicing portfolio acquisitions, Aurora and Bank of America."

Nationstar's servicing portfolio, as measured by unpaid principal balance, was at $208 billion at the end of the fourth quarter, up 94 percent from 2011 ending balance.

Chief Financial Officer David Hisey stated that servicing profitability is a high priority for the company.

The company added over 550,000 new customers in 2012, resulting in over 1.1 million total customers at the end of the year.

NSM closed Wednesday's regular trading at $41.06 on the NYSE. In the pre-market activity, the shares are up 0.10 percent.

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