Stonegate Mortgage Corp. trimmed the size of its staff, reduced its servicing portfolio and cut its losses. Lending slowed from a year ago.
From the period that started on April 1 and finished on June 30 of this year, earnings prior to income tax expense was a $17 million loss.
The Indianapolis-based firm disclosed its income, as well as other operational and financial results, in its second-quarter 2016 earnings report.
Stonegate cut its losses from $39 million in the first quarter but swung from a $21 million profit in the second-quarter 2015.
Valuations on mortgage servicing rights improved $18 million from the first quarter.
Residential loan originations totaled $2.343 billion during the second-quarter 2016.
Business improved from the prior period, when
8,659 loans were funded for for $1.941 billion.
But business fell short of the 14,845 loans funded for $3.440 billion
during the same three-month period in 2015.
Full first-half 2016 volume came to
$4.285 billion.
The latest quarterly volume consisted of $0.287 billion in retail production, $0.562 billion in wholesale lending and $1.494 billion in correspondent acquisitions.
Third-quarter 2016 business is shaping up to be similar to the prior period based on mortgage loans locked, which rose to $3.3 billion in the second quarter from $3.1 billion the prior quarter.
Stonegate said it closed on the sale of mortgage servicing rights on $5.1 billion in conventional loans as of June 30.
That left the servicing portfolio at $14.138 billion as of the close of the quarter.
Stonegate serviced 93,449 home loans were serviced for $18.068 billion as of March 31 and
91,934 loans for $17.244 billion as of mid-2015.
Staffing finished mid-2016 at 865 employees, four fewer than at the end of March.
But headcount has been slashed from 1,349 people as of June 30, 2015.
