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Nationstar Mortgage Holdings reported on Tuesday a net loss of 92 million dollars for the second quarter. Still, there were positives in Nationstar’s earnings report for Q2 2016. On an adjusted basis, the Dallas, Texas-based servicer’s net income was 52 million dollars, with the three major drivers for growth being strong servicing performance, a favorable originations environment, and property sales growth in the company’s Xome segment.
The originations segment posted a pre-tax income of 54 million dollars for Q2, driven by the company’s direct to consumer business. The servicing segment reported a pretax loss of 158 million dollars, but on an adjusted basis, the servicing segment posted a pretax income of 64 million dollars. The company’s Xome segment produced 22 million dollars in pretax income in Q2, which calculates to 28 million dollars on an adjusted earnings basis.
Sixty-five House Democrats expressed strong support for the CFPB’s proposed rule to prohibit the use of forced arbitration in consumer contracts in the form of a letter to CFPB Director Richard Cordray on Wednesday. In May, the CFPB proposed a rule that would ban class action waivers in forced arbitration agreements for financial products and services, thus paving the way for consumers to file class action lawsuits against businesses they believe have harmed them financially.
