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.