Nationstar Mortgage 8-K/A Results of Operations and Financial Condition

Schedule A

2016 Non-GAAP Adjustments

	Q1'16																Q2'16
	Servicing segment																Servicing segment
($ in millions)	Q1'16 As Reported					Q1'16 Adjustment			Q1'16 As Adjusted					Consolidated As Adjusted			Q2'16 As Reported					Q2'16 Adjustment			Q2'16 As Adjusted					Consolidated As Adjusted
	$			BPS		$			$			BPS		$			$			BPS		$			$			BPS		$
Operational	$	317		32.3		—			$	317		32.3					$	333		35.4		$	—		$	333		35.4
Amortization	(65		)	(6.6	)	—			(65		)	(6.6	)				(78		)	(8.3	)	—			(78		)	(8.3	)
Other mark-to-market	(253		)	(25.8	)	(9		)	(262		)	(26.7	)				(221		)	(23.4	)	(10		)	(231		)	(24.5	)
Total revenue	(1		)	—		(9		)	(10		)	(1.0	)	$	255		34			3.7		(10		)	24			2.6		$	329
Expenses	184			18.8		(9		)	176			17.9		412			169			17.8		(10		)	159			16.8		413
Total other income (expense), net	(22		)	(2.3	)	—			(22		)	(2.3	)	(58		)	(23		)	(2.5	)	—			(23		)	(2.5	)	(60		)
Loss before taxes (GAAP)	(208		)	(21.2	)	—			(208		)	(21.2	)	(215		)	(158		)	(16.7	)	—			(158		)	(16.7	)	(144		)
Income tax benefit														82																53
Noncontrolling interest														(1		)														1
Net income attributable to Nationstar														$	(132	)														$	(92	)
Mark-to-market	253			25.8		9			262			26.7		262			221			23.4		10			231			24.5		231
Non-recurring	4			0.4		—			4			0.4		6			—			—		—			—			—		6
Adjusted pretax income	$	50		5.0		$	9		$	59		5.9		53			$	63		6.8		$	10		$	73		7.8		93
Income tax expense														(20		)														(34		)
Adjusted earnings														$	33															$	59
Earnings per share														$	(1.28	)														$	(0.92	)
Adjusted Earnings per share														$	0.32															$	0.59