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» VISIT US ONLINE @ DSNEWS.COM 89 the company's Q1 2016 financial results. e net loss represented a year-over-year decline of about $142 million in net income; in Q1 2015, Walter suffered a net loss of $31 mil- lion. Walter's total serviced portfolio had $275.7 billion in unpaid principal balance (UPB) at the end of Q1 2016, an increase of 3 percent from the previous quarter, and the company was ranked nationally as a top 10 servicer, ac- cording to the announcement from Walter. e company's total revenue in the first quarter declined by $244.1 million year-over- year down to $66.8 million, largely due to a $196.6 million decline in net servicing revenue and fees reflecting a $197.3 million change in fair value changes to mortgage servicing rights, according to Walter. "First quarter performance was significant- ly impacted by the challenging rate environ- ment. e decline in rates drove a volatile MSR market and negatively impacted results through the revaluation of mortgage servicing rights and accelerated prepayments," said Den- mar J. Dixon, Walter Investment's Vice Chair- man of the Board, CEO, and President. "We are moving with a sense of urgency to improve upon both the customer experience and our operating performance, and we are in the early stages of a transformation of the company. We are working to significantly lower our cost structure while redesigning our processes and driving a culture of excellence at Walter that puts our home-owning customers first." Walter's servicing segment added $17.5 billion of unpaid principal balance to the company's serviced book of business to end the quarter with approximately 2.2 million accounts serviced with an aggregate UPB of approximately $255.3 billion. e increase was driven by a combination of mortgage servicing rights (MSR) acquisitions, sub-servicing ar- rangements, and originated MSR. On the other hand, Walter's servicing segment reported a negative revenue ($63.3 million) for Q1, a year-over-year decline of $207 million, which reflected the impact of fair value charges to Walter's mortgage servicing rights. e Servicing segment had negative revenue of ($63.3) million in the first quarter of 2016, a $207.0 million decline as compared to first quarter of 2015, reflecting the impact of fair value charges to our mortgage servicing rights. Additionally, interest income on loans was lower in the current quarter as compared to the prior year quarter driven by the sale of the residual interests in seven of the Residual Trusts, partially offset by higher other income primarily due to higher fair value gains relating to charged-off loans resulting from an increase in expected collections over time. Non-bank servicers had a tough year in 2015. A report released in April found that out of the three largest non-bank servicers rated by Moody's (Ocwen Financial, Nationstar Mortgage, Walter Investment), only Nation- star turned a profit for the full year of 2015 ($43 million). Both Ocwen and Walter Investment experienced losses of more than $200 million last year. TEXAS Ten Cities Where Homes are Selling the Fastest ere are two occurrences happening simultaneously in the market: some of the hottest housing markets may be slowing down, while those that have been slow to rebound are finally heating up. Trulia's Fastest Moving Markets Re- port found that some of the hottest markets on the "Costly Coasts" may be slowing down while slow-to-rebound markets in the "Bargain Belt" are heating up despite the issue of declining inventory and worsening afford- ability. According to the report, homes are selling faster than they were last year with the largest jump observed among trade-up homes. Nationally, 66.6 percent of homes listed for sale on March 6 were still on the market on April 6, down from 67.8 percent for the same period last year. However, Trulia noted that "not all seg- ments of the market move alike: fluctuations in inventory–which affects the time that homes stay on the market–can behave quite differ- ently within different price points (starter, trade-up homes, etc." e troubling news for first-time home- buyers is that the pace of starter and trade-up home sales is much faster this year compared to premium homes. Trulia said that 65.5 percent of starter homes were still on the market after a month last year, compared with 63.4 percent this year, while trade-up homes went from 62.9 percent on the market last yer to 59.8 percent this year. Premium homes have not moved much at all, rising 71.5 percent from 71.8 percent "Much of this is likely due to the fact over the past few years, inventory of both starter and trade-up homes have fallen much more than premium homes," Trulia said. "However, the national trend hides big differences from one local market to another. In some metros, the sales pace is quickening, while slowing in others." Trulia's Top 10 Fastest-Moving Housing Markets in America » San Jose, California » Oakland, California » San Francisco, California » Seattle, Washington » Portland, Oregon » Tacoma, Washington » Colorado Spring, Colorado » Denver, Colorado » Dallas, Texas » Salt Lake City, Utah Trulia's Top 10 Slowest-Moving Housing Markets in America Compared to a Year Ago » Houston, Texas » San Francisco, California » North Port-Sarasota-Bradenton, Florida » Madison, Wisconsin » Miami, Florida » Phoenix, Arizona » Cape Coral-Fort Myers, Florida » Oakland, California » Sacramento, California » Fort Lauderdale, Florida "All and all, this offers both good news and bad news for homebuyers. Homes are moving off the market slightly faster this year than last at the national level, but there are dramatic differences across individual markets," Trulia said. "Home hunters East of Mississippi can still take their time but will need to move slightly faster than they did last year. Mean- while those in the West won't need to move as frantically as they did last year, but they will still need to move quick to get their dream home." Texas had 28,000 completed foreclosures for the 12-month period ending March 31, 2016, which ranks third among states behind Florida and Michigan, according to CoreLogic. KNOW THIS

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