Walter Investment Management Corp. reported first-quarter GAAP income of $27.7 million, compared to $5.1 million a year earlier.
The first-quarter results reflect growth in the servicing segment from recent portfolio additions, gains from ancillary fees and improved portfolio performance.
The results also included solid earnings contributions from the reverse mortgage and origination segments, Walter said in a press statement.
“Walter Investment produced strong first-quarter financial and operating results, while effectively managing the recent significant growth of our company,” said Mark O’Brien, chairman and CEO of Walter Investment.
He added, “Our servicing group absorbed a significant volume of boardings from the ResCap and BofA portfolio acquisitions, which are performing at or ahead of expectations.”
Core earnings for the first quarter reached $56.5 million, an increase of 174% as compared to the same quarter of last year and 151% above the fourth quarter of 2012.
Total revenue for the first quarter was $291.8 million, compared to $152 million in the year-ago period.
The year-over-year growth reflects a $61.3 million increase in net servicing revenue and fees as well as a net gain of $78.4 million on loan sales.
Since the end of 2012, Walter Investment acquired the servicing rights of more than one million accounts with an unpaid principal balance in excess of $130 billion in transactions completed since the end of last year.
The company also finished the quarter with a combined forward and reverse serviced portfolio of nearly 2 million accounts with a UPB of $215 billion.
Additionally, Walter Investment announced that its wholly-owned subsidiary, Reverse Mortgage Solutions, acquired a $12.2 billion UPB reverse mortgage-servicing portfolio from Wells Fargo (WFC).
The portfolio of more than 76,000 is expected to transfer to Reverse Mortgage Solutions during the third quarter of 2013.