Walter Investment posts $61.7 million loss
Walter Investment Management Corp. posted a third-quarter loss of $61.76 million, or $2.17 a share, on Tuesday. That compares to a profit of $9.6 million, or 36 cents a share, for the same period a year earlier. The firm's income fell on a $60 million tax, which was levied against the business after it no longer qualified for real estate investment trust status. Walter Investment also paid out $3.6 million in expenses associated with its acquisition of Green Tree Servicing in July. The $1.065 billion acquisition brought Green Tree, a fee-based mortgage servicer, under Walter's umbrella. The acquisition forced Walter to give up its REIT status since the transaction pushed the firm outside the realm of real estate. Total revenue increased significantly during the third quarter, hitting $151.1 million, up from $43.5 million last year. Revenue grew as the company's servicing business increased. In October, Walter noted its mortgage servicing portfolio grew by 76% over the past two quarters. During the period, Walter Investment added 97,000 accounts to its line of business, resulting in an unpaid principal balance of $19 billion. By the end of the quarter, Walter was servicing 910,000 accounts with an unpaid principal balance of $59 billion. By the end of 2011, the company expects to have a servicing portfolio of one million accounts with a total unpaid principal balance of $85 billion. Write to Kerri Panchuk.