Walter Investment Management Corp. Announces Full Year And Fourth Quarter 2015 Highlights And Financial Results

TAMPA, Fla., Feb. 29, 2016 /PRNewswire/ – Walter Investment Management Corp. (NYSE: WAC) (“Walter Investment” or the “Company”) today announced operational highlights and financial results for the full year and quarter ended December 31, 2015.

2015 Operational Highlights and Recent Developments

  • Net loss of $7.00 per share; Adjusted Earnings of $1.98 per share after tax
  • Non-cash goodwill and fair value charges drove $6.36 of the per share net loss
  • 4% growth in the serviced portfolio to $266.6 billion of UPB as compared to 2014; ranked nationally as the 8th largest servicer(1)
  • Servicing segment delivered full-year AEBITDA margin of 16 bps
  • 36% growth in Originations funded volumes to $25.1 billion as compared to 2014; ranked nationally as the 14th largest originator(1)
  • Assisted approximately 53,200 homeowners in obtaining modifications and originated approximately 38,300 HARP loans
  • Recently executed agreements to add approximately $13.4 billion in UPB to our servicing portfolio with minimal capital outlays

2015 Financial Results

GAAP net loss for the year ended December 31, 2015 was ($263.2) million, or ($7.00) per share, as compared to a GAAP net loss of ($110.3) million, or ($2.93) per share for 2014. Included in the 2015 net loss are pre-tax, non-cash charges of  $207.6 million for goodwill impairment, or $4.00 per share after tax(2) and $143.3 million resulting from changes in valuation inputs and other assumptions used in the fair value of assets and liabilities carried at fair value, or $2.36 per share after tax(2). Adjusted Earnings for the year was $74.3 million after tax(2), or $1.98 per share(2), and Adjusted EBITDA (“AEBITDA”) for the full year 2015 was $549.7 million.

The goodwill impairment includes a charge of $151.0 million incurred in the fourth quarter related to the Servicing segment and a charge of $56.6 million incurred in the second quarter related to the Reverse Mortgage segment. The goodwill impairment charge related to the Servicing segment was primarily the result of higher discount rates applied to forecasted cash flows driven by the decline in the Company’s stock price which has been impacted by continued challenges in the Company’s industry, market developments, as well as the impact these factors have had on certain Company specific matters.


(1) Source: Inside Mortgage Finance


(2) This calculation assumes an Effective tax rate of 38% and 39% for 2015 and 2014, respectively.  Note, the goodwill impairment charge in the Servicing segment is tax deductible for GAAP while the goodwill impairment charge recorded by the Reverse segment is not.

The Company reported a GAAP net loss for the fourth quarter of 2015 of ($117.1) million, or ($3.16) per diluted share, as compared to a GAAP net loss of ($44.0) million, or ($1.17) per diluted share, for the fourth quarter of 2014.  The current quarter includes a pre-tax, non-cash charge of $151.0 million, or $2.53 per share after tax(1), for goodwill impairment in the Servicing segment. Adjusted Loss for the fourth quarter of 2015 was ($5.0) million after tax(1), or ($0.14) per share(1), relatively flat as compared to the prior year quarter. Adjusted EBITDA for the quarter was $101.2 million, an increase of approximately 19% when compared to the prior year quarter primarily driven by lower levels of operating expenses. These lower levels of expenses were driven in part, by actions taken throughout 2015 to improve operating efficiency.


(1) This calculation assumes an effective tax rate of 38% and 39% for 2015 and 2014, respectively.  Note, the goodwill impairment charge in the Servicing segment is tax deductible for GAAP while the goodwill impairment charge recorded by the Reverse segment is not.

“We are embarking on a transformation of our businesses to create a best-in-class experience for homeowners. The ambition of this transformation is to make us the partner of choice for homeowners, regulators and other stakeholders. As we undertake this mission, the Company is pleased to have added significant shareholder representation to the Board,” said Denmar J. Dixon, Walter Investment’s Vice Chairman, Chief Executive Officer and President.

Earlier this year, Walter launched a company-wide project to transform processes and identify and deploy technology solutions to drive substantial improvement in costs, revenues and compliance.  Mr. Dixon continued, “Our goal is to improve the overall customer experience dramatically, help us drive down our cash costs of operations and at the same time drive long-term growth in per-share intrinsic value.”

The Company is intently focused on lowering cash costs, and has initiated a comprehensive review of its cost structure and operations. During this process, we are evaluating investments and other uses of cash against return hurdles and opportunity costs, and are planning to repurchase or pay down debt during the year ahead. Improving Walter’s financial strength is a key objective over the near term. Walter’s cash flows, focus on expanding our sub-servicing business and disciplined requirements for new cash investments should lead to a stronger balance sheet. Under the Company’s 2016 debt reduction plan, Walter is targeting a leverage ratio of 3.4X to 3.6X by the end of the year.

The Company is actively pursuing potential business opportunities with the goal of significantly increasing its mix of sub-servicing business. In 2015, the Company grew its Servicing segment’s portfolio by 4% through its originations efforts and opportunistic portfolio purchases without raising capital. The Originations segment capitalized on an attractive rate environment and delivered strong results from both the retention and correspondent channels.

Mr. Dixon noted that the Reverse Mortgage segment encountered significant operational challenges during the year, resulting in a disappointing financial result, “We are taking steps which we believe will drive meaningful improvement in the business in 2016.”

Full Year and Fourth Quarter 2015 Financial and Operating Overview

Total revenue for the year ended December 31, 2015 was $1.3 billion, a decline of $212.9 million or 14% as compared to the year ended December 31, 2014, primarily related to a $107.2 million decline in net servicing revenues and fees driven by a $128.5 million decrease in the fair value of mortgage servicing rights. Additionally, the current year had $60.2 million lower interest income on loans primarily due to the sale of the residual interests in seven of the Residual Trusts and $23.8 million lower insurance revenue driven by the loss of commissions earned on GSE lender-placed policies. Total expense of $1.7 billion for the year ended December 31, 2015 increased $86.7 million or 5% as compared to the year ended December 31, 2014, primarily due to a $125.3 million higher goodwill impairment charge in the current year, partially offset by $29.5 million lower interest expense primarily due to the sale of the residual interests in seven of the Residual Trusts and $5.5 million lower other expenses.

Total revenue for the fourth quarter of 2015 was $331.6 million, a slight increase as compared to the prior year quarter, driven by $56.9 million higher net servicing revenue and fees primarily related to favorable fair value gains on mortgage servicing rights, partially offset by $32.5 million lower fair value gains on reverse loans and liabilities and $20.6 million lower interest income on loans primarily due to the sale of the residual interests in the seven Residual Trusts in April 2015. Total expenses for the fourth quarter of 2015 were $548.3 million, 28% higher as compared to the fourth quarter of 2014. Results reflect a goodwill impairment charge of $151.0 million related to the Servicing business and $11.6 million higher curtailment expense in the Reverse Mortgage business, partially offset by $31.6 million lower accruals for loss contingencies and legal expenses due to legal and regulatory matters outside of the normal course of business, $15.3 million lower Servicing advance loss provisions and $13.5 million lower interest expense primarily due to the sale of the residual interests in seven of the Residual Trusts.

Fourth Quarter 2015 Segment Results

Results for the Company’s segments are presented below.

Servicing

During the fourth quarter of 2015 the Servicing segment added approximately $10.0 of UPB to the serviced book of business through a combination of MSR acquisitions, sub-servicing arrangements, originated MSR and co-issue relationships, ending the quarter with approximately 2.1 million total accounts serviced with a UPB of approximately $246.6 billion. Ditech ended the year ranked as the 8th largest servicer in the nation by UPB. During the quarter, the Company experienced a net disappearance rate of 13.3% which was aided by the retention performance of the Originations segment.

The Servicing segment generated total revenue of $220.4 million in the fourth quarter of 2015, a 20% increase as compared to fourth quarter 2014 revenue of $183.3 million. The increase was primarily comprised of $42.5 million favorable fair value changes on our mortgage servicing rights and $12.5 million higher servicing fees, partially offset by $20.6 million lower interest income on loans resulting primarily from the sale of the residual interests in seven of the Residual Trusts. Servicing revenues for the quarter ended December 31, 2015 included $179.3 million of servicing fees, $23.9 million of incentive and performance-based fees and $28.4 million of ancillary and other fees.The segment recorded a favorable change in fair value resulting from changes in valuation inputs and other assumptions used in the fair value of assets and liabilities carried at fair value of $20.1 million for the quarter.

Expense for the Servicing segment was $369.6 million, an increase of 46% or $116.5 million as compared to the prior year quarter. The change was driven by a $151.0 million goodwill impairment charge partially offset by a $22.2 million decrease in operational expenses including $12.5 million lower accruals for loss contingencies and legal expenses and $15.3 million lower advance loss provisions, as well as $12.2 million lower interest expense primarily as a result of the sale of the residual interests in seven of the Residual Trusts. Expenses also included $11.1 million of depreciation and amortization costs. 

The segment generated AEBITDA of $90.4 million, an increase of 22% as compared to the fourth quarter of 2014, primarily due to lower expenses driven by cost-cutting initiatives implemented throughout 2015. The segment generated Adjusted Earnings of $18.7 million for the fourth quarter of 2015, a decline of 22% as compared to the prior year quarter primarily driven by lower revenues, which include a $23.9 million unfavorable change in the fair value of servicing rights attributable to higher realization of cash flows reflecting the impact of accelerated prepayments, partially offset by lower expenses. 

The Company recently made progress on its goals, executing agreements to add approximately $13.4 billion in UPB to the Servicing segment’s portfolio with minimal capital outlays.

Originations

Total pull-through adjusted locked volume for the fourth quarter increased to $5.5 billion, as compared to $5.1 billion for the fourth quarter of 2014, driven by volume growth in the correspondent lending channel. Funded loans in the current quarter totaled $5.6 billion, an increase of 10.8% from the prior year quarter, with approximately 31% of that volume in the consumer lending channel and approximately 69% generated by the correspondent lending channel. Ditech ended the year ranked as the 14th largest originator in the nation by UPB. The combined direct margin for the current quarter was 63 bps, an overall increase of 13 bps from the prior year quarter, consisting of a weighted average of 97 bps direct margin in the consumer lending channel and 33 bps direct margin in the correspondent lending channel.  The Originations business delivered a recapture rate of 25% for the year.

The Originations segment generated revenue of $102.8 million in the fourth quarter of 2015, a 15% increase as compared to the prior year quarter primarily due to a $9.4 million increase in other revenues driven by higher origination fees and a $3.9 million increase in net gains on sales of loans.  Expenses for the Originations segment of $90.6 million, which include $8.5 million of interest expense and $2.7 million of depreciation and amortization, were relatively flat as compared to the prior year quarter.

The segment generated Adjusted Earnings of $17.0 million and AEBITDA of $20.5 million for the fourth quarter of 2015, an increase of $9.9 million and $10.9 million, respectively as compared to the prior year quarter, driven by the higher origination fee income in the current quarter.

Reverse Mortgage

The Reverse Mortgage business grew its serviced portfolio 11% year over year to $20.1 billion of UPB at December 31, 2015. During the year, the business securitized $1.5 billion of HECM loans ranking it as the third largest issuer of HMBS in the nation by UPB. Additionally, during the first quarter the business entered into a new $100 million GNMA buy-out facility enhancing its liquidity position.

The Reverse Mortgage segment generated revenue of $18.1 million for the quarter, a 66% decline as compared to the prior year quarter reflecting lower net fair value gains on reverse loans and related HMBS obligations of $32.5 million, driven primarily by unfavorable changes in non-cash fair value adjustments due to a higher interest rates at December 31, 2015 as compared to the prior year period. Current quarter revenues included a gain of $8.0 million due to the net impact of HECM loan and related HMBS obligation fair value adjustments, $8.1 million in net servicing revenue and fees and $2.0 million of other revenues. Total expenses for the fourth quarter of $48.6 million were 13% lower as compared to the prior year period, primarily driven by $18.2 million lower expenses related to legal and regulatory matters partially offset by $11.6 million higher curtailment expenses, primarily related to regulatory developments in 2015 which led to additional charges around curtailable events.

The segment reported an Adjusted Loss of ($10.2) million and AEBITDA of ($9.0) million for the fourth quarter of 2015 as compared to Adjusted Earnings of $0.4 million and AEBITDA of $1.5 million in the fourth quarter of 2014 due primarily to lower levels of earnings from the origination, purchase and securitization of HECM loans, a reduction in net servicing revenue and fees and higher expenses primarily driven by normal course of business curtailment charges.

Securitized and funded originations volumes decreased as compared to the prior year quarter as volumes were negatively impacted by the financial assessment rules, operational disruption in the Company’s retail channel and a decision to reduce participation in the correspondent market based on current pricing levels.

Other Non-Reportable Segment

The Other Non-Reportable segment generated revenue of $0.5 million for the fourth quarter of 2015 as compared to revenue of $1.1 million in the prior year quarter. Total expenses in the current quarter were $49.7 million compared to $42.8 million the prior year quarter, and included $35.6 million related to corporate debt.

The Other non-reportable segment generated Adjusted Loss of ($33.6) million and AEBITDA of ($0.7) million for the fourth quarter of 2015 as compared to Adjusted Loss of ($34.9) million and AEBITDA of ($0.4) million in the fourth quarter of 2014.

About Walter Investment Management Corp.

Walter Investment Management Corp. is a diversified mortgage banking firm focused primarily on the servicing and origination of residential loans, including reverse loans. Based in Tampa, Fla., the Company has approximately 5,900 employees and services a diverse loan portfolio.  For more information about Walter Investment Management Corp., please visit the Company’s website at www.walterinvestment.com. The information on our website is not a part of this release.

Conference Call Webcast

Members of the Company’s leadership team will discuss Walter Investment’s full year and fourth quarter results and other general business matters during a conference call and live webcast to be held on Monday, February 29, 2016, at 10 a.m. Eastern Time. To listen to the event live or in an archive, and to access presentation slides (which include supplemental information) which will be available for at least 30 days, visit the Company’s website at www.walterinvestment.com.

This press release and the accompanying reconciliations include non-GAAP financial measures.  For a description of these non-GAAP financial measures, including the reasons management uses each measure, and reconciliations of these non-GAAP financial measures to the most directly comparable financial measures prepared in accordance with GAAP, please see the reconciliations as well as “Non-GAAP Financial Measures” at the end of this press release.

Disclaimer and Cautionary Note Regarding Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. Statements that are not historical fact are forward-looking statements. Certain of these forward-looking statements can be identified by the use of words such as “believes,” “anticipates,” “expects,” “intends,” “plans,” “projects,” “estimates,” “assumes,” “may,” “should,” “will,” “targets,” or other similar expressions. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors, and our actual results, performance or achievements could differ materially from future results, performance or achievements expressed in these forward-looking statements. These forward-looking statements are based on our current beliefs, intentions and expectations. These statements are not guarantees or indicative of future performance. Important assumptions and other important factors that could cause actual results to differ materially from those forward-looking statements include, but are not limited to, those factors, risks and uncertainties described below and in more detail under the caption “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2015 and in our other filings with the SEC.

In particular (but not by way of limitation), the following important factors, risks and uncertainties could affect our future results, performance and achievements and could cause actual results, performance and achievements to differ materially from those expressed in the forward-looking statements:

  • our ability to operate our business in compliance with existing and future rules and regulations affecting our business, including those relating to the origination and servicing of residential loans, the management of third-party assets and the insurance industry (including lender-placed insurance), and changes to, and/or more stringent enforcement of, such rules and regulations;
  • increased scrutiny and potential enforcement actions by federal and state authorities;
  • the substantial resources (including senior management time and attention) we devote to, and the significant compliance costs we incur in connection with, regulatory compliance and regulatory examinations and inquiries, and any consumer redress, fines, penalties or similar payments we make in connection with resolving such matters;
  • uncertainties relating to interest curtailment obligations and any related financial and litigation exposure (including exposure relating to false claims);
  • potential costs and uncertainties, including the effect on future revenues, associated with and arising from litigation, regulatory investigations and other legal proceedings;
  • our dependence on U.S. government-sponsored entities (especially Fannie Mae) and agencies and their residential loan programs and our ability to maintain relationships with, and remain qualified to participate in programs sponsored by, such entities, our ability to satisfy various existing or future GSE, agency and other capital, net worth, liquidity and other financial requirements applicable to our business, and our ability to remain qualified as a GSE approved seller, servicer or component servicer, including the ability to continue to comply with the GSEs’ respective residential loan and selling and servicing guides;
  • uncertainties relating to the status and future role of GSEs, and the effects of any changes to the origination and/or servicing requirements of the GSEs or various regulatory authorities or the servicing compensation structure for mortgage servicers pursuant to programs of GSEs or various regulatory authorities;
  • our ability to maintain our loan servicing, loan origination, insurance agency or collection agency licenses, or any other licenses necessary to operate our businesses, or changes to, or our ability to comply with, our licensing requirements;
  • our ability to comply with the servicing standards required by the National Mortgage Settlement;
  • our ability to comply with the terms of the stipulated order resolving allegations arising from an FTC and CFPB investigation of Ditech Financial;
  • operational risks inherent in the mortgage servicing and mortgage originations businesses, including reputational risk;
  • risks related to our substantial levels of indebtedness, including our ability to comply with covenants contained in our debt agreements, generate sufficient cash to service such indebtedness and refinance such indebtedness on favorable terms, as well as our ability to incur substantially more debt;
  • our ability to renew advance financing facilities or warehouse facilities and maintain borrowing capacity under such facilities;
  • our ability to maintain or grow our servicing business and our residential loan originations business;
  • our ability to achieve our strategic initiatives, particularly our ability to: execute and complete balance sheet management activities; complete the sale of our insurance business; make arrangements with potential capital partners; complete sales of assets to, and enter into other arrangements with, WCO; increase the mix of our fee-for-service business; reduce our debt; and develop new business, including acquisitions of MSRs or entering into new subservicing arrangements;
  • changes in prepayment rates and delinquency rates on the loans we service or sub-service;
  • the ability of our clients and credit owners to transfer or otherwise terminate our servicing or sub-servicing rights;
  • a downgrade of, or other adverse change relating to, our servicer ratings or credit ratings;
  • our ability to collect reimbursements for servicing advances and earn and timely receive incentive payments and ancillary fees on our servicing portfolio;
  • our ability to collect indemnification payments and enforce repurchase obligations relating to mortgage loans we purchase from our correspondent clients and our ability to collect in a timely manner indemnification payments relating to servicing rights we purchase from prior servicers;
  • local, regional, national and global economic trends and developments in general, and local, regional and national real estate and residential mortgage market trends in particular, including the volume and pricing of home sales and uncertainty regarding the levels of mortgage originations and prepayments;
  • uncertainty as to the volume of originations activity we will benefit from prior to, and following, the expiration of HARP, which is scheduled to occur on December 31, 2016, including uncertainty as to the number of “in-the-money” accounts we may be able to refinance;
  • risks associated with the origination, securitization and servicing of reverse mortgages, including changes to reverse mortgage programs operated by FHA, HUD or Ginnie Mae, our ability to accurately estimate interest curtailment liabilities, continued demand for HECM loans and other reverse mortgages, our ability to fund HECM repurchase obligations, our ability to fund principal additions on our HECM loans, and our ability to securitize our HECM loans and tails;
  • our ability to realize all anticipated benefits of past, pending or potential future acquisitions or joint venture investments;
  • the effects of competition on our existing and potential future business, including the impact of competitors with greater financial resources and broader scopes of operation;
  • changes in interest rates and the effectiveness of any hedge we may employ against such changes;
  • risks and potential costs associated with technology and cybersecurity, including: the risks of technology failures and of cyber-attacks against us or our vendors; our ability to adequately respond to actual or alleged cyber-attacks; and our ability to implement adequate internal security measures and protect confidential borrower information;
  • risks and potential costs associated with the implementation of new technology such as MSP,  the use of new vendors or the transfer of our servers or other infrastructure to new data center facilities;
  • our ability to comply with evolving and complex accounting rules, many of which involve significant judgment and assumptions;
  • uncertainties regarding impairment charges relating to our goodwill or other intangible assets;
  • our ability to maintain effective internal controls over financial reporting and disclosure controls and procedures;
  • our ability to manage conflicts of interest relating to our investment in WCO and maintain our relationship with WCO; and
  • risks related to our relationship with Walter Energy and uncertainties arising from or relating to its bankruptcy filings, including potential liability for any taxes, interest and/or penalties owed by the Walter Energy consolidated group for the full or partial tax years during which certain of the Company’s former subsidiaries were a part of such consolidated group and certain other tax risks allocated to us in connection with our spin-off from Walter Energy.

All of the above factors, risks and uncertainties are difficult to predict, contain uncertainties that may materially affect actual results and may be beyond our control. New factors, risks and uncertainties emerge from time to time, and it is not possible for our management to predict all such factors, risks and uncertainties.

Although we believe that the assumptions underlying the forward-looking statements (including those relating to our outlook) contained herein are reasonable, any of the assumptions could be inaccurate, and therefore any of these statements included herein may prove to be inaccurate. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by us or any other person that the results or conditions described in such statements or our objectives and plans will be achieved. We make no commitment to revise or update any forward-looking statements in order to reflect events or circumstances after the date any such statement is made, except as otherwise required under the federal securities laws. If we were in any particular instance to update or correct a forward-looking statement, investors and others should not conclude that we would make additional updates or corrections thereafter except as otherwise required under the federal securities laws.

Amounts or metrics that relate to future earnings projections are forward-looking and subject to significant business, economic, regulatory and competitive uncertainties, many of which are beyond the control of us and our management, and are based upon assumptions with respect to future decisions, which are subject to change. Actual results will vary and those variations may be material. Nothing in this release should be regarded as a representation by any person that any target will be achieved and we undertake no duty to update any target. Please refer to the disclosures in this press release, in our Annual Report on Form 10-K for the year ended December 31, 2015 and our other filings with the SEC for important information regarding forward-looking statements and the use and limitations of non-GAAP financial measures. Because we do not predict special items that might occur in the future, and our outlook is developed at a level of detail different than that used to prepare GAAP financial measures, we are not providing a reconciliation to GAAP of any forward-looking financial measures presented herein.

In addition, this press release may contain statements of opinion or belief concerning market conditions and similar matters. In certain instances, those opinions and beliefs could be based upon general observations by members of our management, anecdotal evidence and/or our experience in the conduct of our business, without specific investigation or statistical analyses. Therefore, while such statements reflect our view of the industries and markets in which we are involved, they should not be viewed as reflecting verifiable views and such views may not be shared by all who are involved in those industries or markets.

Walter Investment Management Corp. and Subsidiaries
Consolidated Statements of Comprehensive Income (Loss)
(in thousands, except per share data)




For the Years Ended December 31,



2015


2014


2013

REVENUES







Net servicing revenue and fees


$

494,267



$

601,510



$

783,389


Net gains on sales of loans


453,840



462,172



598,974


Interest income on loans


74,365



134,555



144,651


Net fair value gains on reverse loans and related HMBS obligations


98,265



109,972



120,382


Insurance revenue


47,201



71,010



84,478


Other revenues


106,321



107,934



70,625


Total revenues


1,274,259



1,487,153



1,802,499









EXPENSES







Salaries and benefits


576,817



578,627



549,799


General and administrative


574,091



577,506



480,377


Interest expense


273,606



303,103



272,655


Depreciation and amortization


69,128



72,721



71,027


Goodwill impairment


207,557



82,269




Other expenses, net


10,557



10,803



9,395


Total expenses


1,711,756



1,625,029



1,383,253









OTHER GAINS (LOSSES)







Gains (losses) on extinguishments


4,660





(12,489)


Other net fair value gains


7,398



19,280



6,061


Other


21,013



(744)




Total other gains (losses)


33,071



18,536



(6,428)









Income (loss) before income taxes


(404,426)



(119,340)



412,818


Income tax expense (benefit)


(141,236)



(9,012)



159,351


Net income (loss)


$

(263,190)



$

(110,328)



$

253,467









OTHER COMPREHENSIVE INCOME (LOSS) BEFORE TAXES







Change in postretirement benefits liability


193



138



58


Amortization of realized losses on closed hedges




(145)



(127)


Unrealized gain on available-for-sale security in other assets


503



77



75


Other comprehensive income before taxes


696



70



6


Income tax expense for other comprehensive income items


278



173



1


Other comprehensive income (loss)


418



(103)



5


Total comprehensive income (loss)


$

(262,772)



$

(110,431)



$

253,472









Net income (loss)


$

(263,190)



$

(110,328)



$

253,467


Basic earnings (loss) per common and common equivalent share


$

(7.00)



$

(2.93)



$

6.75


Diluted earnings (loss) per common and common equivalent share


(7.00)



(2.93)



6.63


Weighted-average common and common equivalent shares outstanding — 
     basic


37,578



37,631



37,003


Weighted-average common and common equivalent shares outstanding — 
     diluted


37,578



37,631



37,701


 

 

Walter Investment Management Corp. and Subsidiaries
Consolidated Balance Sheets
(in thousands, except share and per share data)




December 31,


Author and Financial Activist Launches Website for Grass Roots Finance Reform

SPRINGFIELD, Ill., Feb. 18, 2016 /PRNewswire/ – Author and financial historian Michael Piontkowski, also known as Piont, has launched a new website portal to serve as the anchor for a grass roots movement to encourage elected officials to enact better finance options for U.S. citizens. 

The site sells no services, and asks for no funds, but instead provides background information in a rolling prose style that is both fun and educational.

The website was inspired by what Piont cites as a constitutional right to interest-free money, first established and used by President Abraham Lincoln, utilizing the United States Constitution, Article One Section Eight Clause Two: “The Congress shall have power … To borrow money on the credit of the United States.” 

With his grass roots effort website called “Interest Free Banking” he hopes to get the word out on how every U.S. citizen can convert all their debt-interest money loans into zero percent, interest-free loans, if such a new finance reform bill was passed.    

“What people don’t know is that President Abraham Lincoln proved that U.S. citizens have a constitutional right to interest-free money,” Piont says. ”If finance reform is enacted, people could save hundreds of thousands of dollars by not having to pay interest on home mortgages, auto and other vehicle loans, personal and business loans, student loans and more.”

“The interest-free money history with President Lincoln is important because it sets legal precedent (stare decisis) for the nationwide return of constitutional interest-free money for us U.S. citizens.” 

Piont proposes that citizens can take action to take back ownership of their Government’s money printing presses by getting “The Abraham Lincoln Banking Act” passed in the U.S. Congress.

“The plan is simple,” explains Piont. ”People spread the name and news of this grass roots effort over their social networks and by word-of-mouth. And they contact their U.S. Congressman/Congresswoman and two U.S. Senators requesting passage of ‘The Abraham Lincoln Banking Act.’” 

Piont makes it quick and easy for people to contact their elected representatives via his website. 

For more information about President Lincoln’s constitutional interest-free money visit: http://www.interestfreebanking.com/

*Website Image for Media: Send2Press.com/mediaboom/16-0217-ifbanking-300dpi.jpg

This release was issued through Send2Press®, a unit of Neotrope®. For more information, visit Send2Press Newswire at https://www.Send2Press.com   

 

SOURCE Michael Piontkowski

RELATED LINKS
http://www.interestfreebanking.com

$8,300,000 Hotel Construction Loan Closed by Hyde Park Commercial Group

CINCINNATI, Feb. 16, 2016 /PRNewswire/ — Hyde Park Commercial Group, a commercial real estate advisory firm is pleased to announce the closing of a $8,300,000 construction loan for a Hampton Inn.  The proposed subject property will feature four stories, 85 rooms, breakfast dining area, indoor pool, indoor whirlpool, an outdoor sundeck, fitness room, lobby workstation, sundries counter, guest laundry room and vending areas.

Logo - http://photos.prnewswire.com/prnh/20160216/333862LOGO

Hyde Park CG advised and arranged a bank loan facility with the local economic development fund’s participation. The loan featured a construction to perm amortizing debt facility that provided construction capital, converting to a permanent loan upon completion and stabilization. The debt was structured in two tranches, $6,800,000 conventional and $1,500,000 provided by the local economic development fund. The conventional debt pricing was WSJ Prime +50 basis points during construction, converting to a 25 year amortizing permanent loan at 175 basis points above the Boston Federal Home Loan Classic Rate Option. The local economic development fund provided the second tranche that featured debt pricing at Economic Development Fund Prime rate minus -0.75% or 2.75% floating, with a 138-month term and 20-year amortization. Hyde Park was able to arrange the full request through an east coast bank and local economic development fund.

Hyde Park Commercial Group arranges capital through a broad range of sources from hedge funds, life companies, CMBS, private investors, SBA, to regional and national banks. Hyde Park focuses on debt placement for improved commercial real estate properties, with a specialization in hospitality properties, and business finance transactions nationwide.

For more information, call Daniel Redlinger or Jerry Dehner, Managing Partners at 513-792-2940 or visit: http://www.hydeparkcg.com.

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SOURCE Hyde Park Commercial Group

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Robbins Geller Rudman & Dowd LLP Files Class Action Suit Against Navient Corporation

NEW YORK, Feb. 12, 2016 /PRNewswire/ – Robbins Geller Rudman & Dowd LLP (“Robbins Geller”) (http://www.rgrdlaw.com/cases/navient/) today announced that a class action has been commenced in the United States District Court for the District of Delaware on behalf of purchasers of Navient Corporation (“Navient” or the “Company”) (NASDAQ: NAVI) publicly traded securities during the period between April 17, 2014 and December 28, 2015 (the “Class Period”).

If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from February 11, 2016.  If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff’s counsel, Samuel H. Rudman or David A. Rosenfeld of Robbins Geller at 800/449-4900 or 619/231-1058, or via e-mail at djr@rgrdlaw.com.  If you are a member of this class, you can view a copy of the complaint as filed or join this class action online at http://www.rgrdlaw.com/cases/navient/.  Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.

The complaint charges Navient and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Navient is the nation’s largest loan servicer, servicing more than $300 billion in student loans. Navient holds the largest portfolio of education loans insured or guaranteed under the Federal Family Education Loan Program, as well as the largest portfolio of Private Education Loans.

The complaint alleges that during the Class Period, defendants materially misstated the Company’s business metrics and financial prospects by failing to disclose that: (a) an increased number of higher risk Private Education Loan borrowers were not timely repaying their loans; (b) Navient’s loan loss reserves were materially understated; (c) the Company was engaged in unsound business practices; (d) the Company’s operating structure was bloated; (e) a significant portion of the Company’s low-rate credit facilities were at risk of being reduced or eliminated, which would cause the Company to face higher borrowing costs; and (f) based on the foregoing, defendants lacked a reasonable basis for their positive statements about the Company’s prospects and growth, including its ability to report core earnings of $2.10 per share and $2.20 per share in 2014 and 2015, respectively.  As the truth about the Company’s business and prospects was revealed through a series of partial disclosures, the price of Navient’s publicly traded securities declined precipitously, erasing hundreds of millions of dollars in market capitalization. 

Plaintiff seeks to recover damages on behalf of all purchasers of Navient publicly traded securities during the Class Period (the “Class”).  The plaintiff is represented by Robbins Geller, which has extensive experience in prosecuting investor class actions including actions involving financial fraud.

Robbins Geller, with 200 lawyers in ten offices, represents U.S. and international institutional investors in contingency-based securities and corporate litigation.  The firm has obtained many of the largest securities class action recoveries in history and was ranked first in both the amount and number of shareholder class action recoveries in ISS’s SCAS Top 50 report for 2014.  Please visit http://www.rgrdlaw.com/cases/navient/ for more information.

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SOURCE Robbins Geller Rudman & Dowd LLP

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United Way and the Campaign for Working Families Kick Off Tax Season

PHILADELPHIA, Feb. 1, 2016 /PRNewswire-USNewswire/ – United Way of Greater Philadelphia and Southern New Jersey (UWGPSNJ) and the Campaign for Working Families (CWF) kicked off the 2016 tax season and the Volunteer Income Tax Assistance Program (VITA) by opening nearly 40 free tax preparation sites across the region.

“At United Way, we’re focused on ensuring our local families have access to the resources, assets and education they need to thrive,” said Jim Cawley, president and CEO of UWGPSNJ. “Through programs like VITA, we help put additional dollars back into the pockets of our families living paycheck-to-paycheck, so they are able to pay down debt, save for a home or continue their education. Thanks to our Impact Partners like the Campaign for Working Families, we’re changing lives and strengthening communities – one child, one adult and one family at a time.”

To celebrate the 42nd anniversary of the enactment of the Earned Income Tax Credit (EITC) and recent legislation that made the federal EITC permanent, eligible community members are invited to file their taxes for free at nearly 40 tax sites in Philadelphia, Montgomery and Delaware Counties and southern New Jersey.

According to the IRS, taxpayers are often unaware of the important credits they may be eligible for and leave valuable dollars on the table. The IRS estimates that one in five taxpayers does not claim one of the biggest boosters to family incomes – the EITC, a refundable credit that can return up to $6,269 per qualifying family – simply because they are unaware that they are eligible or do not file their taxes. VITA not only provides assistance for taxes, but also helps residents make connections to other financial resources such as budgeting, credit counseling and financial literacy programs.

“Our goal is to ensure every eligible taxpayer has access to free and accurate tax preparation services, where the tax filer can be assured they receive all eligible credits they are entitled to in an effort to maximize their refund,” says Mary Arthur, executive director of CWF. “We are honored to have the opportunity to continue this work thanks to the significant support and contributions from United Way’s Impact Fund.”

Families earning $54,000 or less, or individuals earning $20,000 or less, will be eligible to receive free tax assistance. Last year, VITA volunteers filed nearly 29,000 tax returns across the region, which returned more $41 million to local communities. For eligibility requirements and a list of VITA tax sites, please visit UnitedForImpact.org/VITA or CWFPhilly.org.

 

SOURCE United Way of Greater Philadelphia and Southern New Jersey

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