Residential mortgage market provider Nationstar Mortgage Holdings (NSM) posted an overview in regards to the company’s yearly performance.
Nationstar originated $7.2 billion in annual production for 2012, while servicing loans with an unpaid principal balance of $425 billion, according to its investor relations report.
In it’s landmark acquisition, Nationstar acquired Bank of America’s (BAC) servicing book for $215 billion. As a result, the company was able to capture multiple revenue streams driving profitability during the entire economic cycle, the report said.
Looking forward at earnings estimates, Nationstar’s earnings per share should be between $3.70 and $4.35 per share in 2013 and between $5.60 and $6.50 in 2014, the report said.
In regards to future growth opportunities, originations are expected to channel development within KB Home's (KB), wholesale and correspondent sectors, according to the company. KB Home and Nationstar Mortgage expanded an existing business relationship this year by agreeing to create a new mortgage company.
The mortgage firm, which is called Home Community Mortgage, will cater to KB Home customers and dramatically expands upon Nationstar's role as KB Home's preferred lending partner.
Nationstar's primary strategy for originations is recapturing refinanced Nationstar loans in 2013. Additionally, the objectives for 2013 and 2014 include exhausting its portfolio of the Home Affordable Refinance Program and recapturing opportunities to capitalize on margin premium, the report said.
To read the full report, click here.