Walter Investment Management Corp. announced consolidated earnings results for the second quarter and six months ended June 30, 2016. For the quarter, the company's total revenues were $187,473,000 compared to $412,433,000 a year ago, primarily due to $192.0 million lower net servicing revenue and fees, including $188.6 million higher fair value losses on mortgage servicing rights driven by a higher assumed conditional prepayment rate resulting from declining interest rates and forward projections of interest rate curves. Loss before income taxes was $379,584,000 compared to $14,999,000 a year ago. Net loss was $232,401,000 compared to $38,119,000 a year ago. Diluted loss per common and common equivalent share was $6.49 compared to $1.01 a year ago. Adjusted earnings were $3,877,000 compared to adjusted earnings of $39,337,000 a year ago. Adjusted EBITDA was $98,762,000 compared to $140,359,000 a year ago. Adjusted earnings after taxes per common and common equivalent share were $0.07 compared to earnings per share of $0.65 a year ago.

For the six months, the company's total revenues were $254,244,000 compared to $723,290,000 a year ago. Loss before income taxes was $658,475,000 compared to $64,677,000 a year ago. Net loss was $405,103,000 compared to $69,127,000 a year ago. Diluted loss per common and common equivalent share was $11.35 compared to $1.83 a year ago. Adjusted earnings were $24.8 million compared to adjusted earnings of $101,129,000 a year ago. Adjusted EBITDA was $185.8 million compared to $303.0 million a year ago. Adjusted loss after taxes per common and common equivalent share was $0.43 compared to earnings per share of $1.66 a year ago.

For the quarter, the company's goodwill impairment was $215,412,000 against $56,539,000 a year ago.

The company provided earnings guidance for the year 2016. For the year, the company announced that given the continued low interest rate environment, the company is reducing its margin targets for 2016. Adjusted EBITDA margins are expected at the low end of the previously provided range of 11 to 15 basis points and the adjusted earnings margin is expected to be below the previously provided range of 3 to 5 basis points. Operating losses are expected to continue at similar levels during the second half of 2016.