Walter Investment's 2Q Loss Widens on $56.5M Impairment

Walter Investment Management in Tampa, Fla., said its second-quarter loss widened, as it recorded a goodwill impairment charge in its reverse mortgage division.

The company reported a net loss of $38.1 million in the second quarter, or $1.01 per share, versus a loss of $12.9 million in the year prior. Results for this year's second quarter included a $56.5 million pretax charge for goodwill impairment in its reverse mortgage segment.

Revenue fell 0.3% to $412.4 million, on lower interest income on loans, and lower net fair value gains on reverse loans and related obligations.

Total expenses fell 8.4% to $428 million on lower salaries and employee benefits, interest expense and goodwill impairment.

Revenue at Walter's originations segment fell 14% to $128.7 million, on a decline in net gains on sales of loans.

The reverse mortgage segment's revenue fell 48% to $20.2 million, on lower net fair value gains on reverse mortgages.

This article originally appeared in American Banker.
For reprint and licensing requests for this article, click here.
Servicing Housing Nonbank Reverse mortgages
MORE FROM NATIONAL MORTGAGE NEWS