Markets & EconomyTechnology

Xome sunk $140M into ‘advancing its strategy’ in 2015

Parent company Nationstar operated at a loss last year
  • Nationstar operated at a loss of about $66 million in 2015.
  • The company invested $140 million into Xome; it expects to invest about $20 million to $30 million in Xome in 2016.
  • Nationstar is also undergoing a significant branding revamp for its servicing and loan origination offerings. The new name for these consolidated services is Mr. Cooper, which represents the company's efforts to create a more personal customer experience.

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Nationstar Mortgage Holdings, which owns and operates the real estate marketplace Xome, reported its fourth-quarter and 2015 results this morning. As a whole, the company operated at a loss in 2015 to the tune of about $66 million. Xome contributed $78 million to the company's total $882 million in revenue, but expenses, amortizations and other costs meant that Nationstar was $15 million in the hole before taxes. "Xome delivered $6 million in pretax income in the fourth quarter," said Nationstar in a statement. "Earnings were down sequentially due to an increase in technology and marketing investments, higher title expenses due to TRID delays and increased title orders, and a reduction in property sales attributable to seasonality and pipeline delays that are in the process of being addressed." Nationstar said Xome's total revenues increased 43 percent year-over-year, "principally due to higher sales price execution on property sales and growth in our title and close b...