The elusive end-to-end real estate platform that will rule the world still hasn’t (quite) manifested, but mortgage holding company Nationstar is betting that Xome is on its way.
Today, the company released its second quarter (Q2) 2016 financial results, and that particular piece of Nationstar’s business is looking fairly healthy.
First, however, the bottom line: As a whole, Nationstar operated at a loss in Q2. With $264 million in revenue and $421 million in expenses, the Q2 totals showed a $132 million net income loss.
The expenses were mostly attributable to interest expenses ($161 million) and income loss before income tax expenses ($216 million).
Where’s Xome in this picture?
Xome’s pretax income (unadjusted) was $22 million; adjusted, Xome saw $28 million in pretax income roll through the doors.
“Adjusted earnings principally excludes the cost of defending and settling a contingent obligation (partially offset by previously established reserves) that we inherited in connection with our acquisition of a title and close business,” said Nationstar in a statement.
According to Nationstar, 5,406 properties were sold using the Xome platform in Q2 2016, up from 4,165 in Q1 2016.
“In addition, we completed the migration of all assets from Homesearch.com to our Xome.com platform which should result in savings of approximately $4 million annually, principally comprised of external vendor costs,” said Nationstar in the statement. “Third party revenues increased to 37 percent during the quarter” from 36 percent in Q1 2016.
“We’re off to a fantastic start to 2016 with Servicing, Originations and Xome all delivering solid second quarter earnings,” said Jay Bray, Chief Executive Officer, in a statement. “In addition, we are positioned to grow our servicing book to over $450 billion by year-end, principally driven by on-boarding the assets of our newest partners Seneca and USAA.”
“We enter the second half of 2016 as the industry leader, extremely well positioned to capitalize on the significant market opportunities,” said Bray in the statement.
