In addition to swinging to a quarterly loss, Stonegate Mortgage Corp. saw a big downturn in its single-family lending volume.
For the first-three months of 2016, Stonegate suffered a $5 million loss before income taxes, swinging from a $37 million prior-quarter profit.
Those details and more were provided by the Indianapolis-based mortgage banking firm in its first-quarter 2017 earnings report.
The deterioration reflected a $1 million loss from
changes in mortgage servicing rights valuation versus a $36 million gain in the fourth-quarter 2016.
Losses were slashed, however, from $39 million one year prior, when there was a $36 million loss on MSRs.
Residential loan originations during the three months ended March 31, 2017, came to $1.511 billion. The total included $0.155 billion in retail production, $0.382 billion in wholesale lending and $0.974 billion in correspondent acquisitions.
Business sank compared to $2.457 billion in the fourth-quarter 2016. Production also descended from $1.942 billion in the first-quarter 2016.
Mortgage originations won’t likely be much different during the current quarter based on loan lock volume, which was unchanged between the final quarter of last year and the first quarter of this year at $2.1 billion.
Stonegate
serviced $17.416 billion as of the conclusion of the first-quarter 2017. The servicing portfolio grew from $16.287 billion three months earlier. But the portfolio was reduced from $18.068 billion one year earlier.
MSRs were valued at $226 million as of the end of March 2017.
Warehouse lending receivables finished the latest quarter at $96 million.
The report indicated that the acquisition of Stonegate by Home Point Financial Corp. is expected to be completed by the end of the current quarter.
