home subscribe advertise reprints e-mail help RSS about us LOG IN

Mortgage News


Mortgage News

HOT Topics









site map

twitter linkedin
facebook google+

Mortgage News

News by Subject
Complete list of specialty news sections.

Purchase Subscription
Subscribe to MortgageDaily.com and get immediate access to all news, statistics and archives.

Mortgage Advertising
Reach mortgage executives, loan originators and other people tied to mortgage industry.

Consumer Mortgage News
Free mortgage news for prospective borrowers.

Mortgage Newsletter
Free e-mail newsletter with the latest headlines from MortgageDaily.com.

Mortgage News Reprints
Put entire MortgageDaily.com stories in your online or printed newsletter or publication.

Mortgage Feedget RSS code
Condensed MortgageDaily.com stories free on your Web site or for your RSS reader.

News Archives
Archive of MortgageDaily.com stories by month going back to 1999.

Press Releases
Reports and announcements from MortgageDaily.com.

Mortgage Statistics
Data and statistics for real estate finance.

Mortgage Directories
Directories of lenders, branch operators and mortgage service providers.

Mortgage Graphs
Directories of lenders, branch operators and mortgage service providers.

Corporate Mortgage News
M e r g e r s, a c q u i s i t i o n s and private and public offerings. Other corporate activity including executive appointments, bankruptcies name changes.

Best Performing Mortgage Companies

BusinessWeek 50 includes Pulte, BoA

March 29, 2005


Two mortgage-related companies made BusinessWeek's ranking of the 50 best-performing companies in the nation.

Pulte Homes slipped one spot to No. 12 on this year's BusinessWeek 50. "Rock-bottom interest rates and a steady supply of aging baby boomers for its 'active adult' homes kept Pulte growing in 2004" -- with profits skyrocketing 61% to $998 million in that period, the publication said. Total return to its shareholders last year was 48.4% and the three-year return a whopping 203.4%.

BusinessWeek ranks companies on the S & P 500-stock index, basing its best-performing results on a 10-part formula for financial success, including sales growth, earnings growth and total shareholder return. To reward consistency, the magazine also measures performance over one-year and three-year periods, and analyzes profit margins and return on equity, according to an announcement.

Sales for the parent of Pulte Mortgage, LLC, grew 30% last year to $11.7 billion, according to the magazine. Strength in the Southeast region -- where new orders shot up 45% in the fourth quarter -- compensated for last year's weakened home demand in some Western markets, including the suddenly cooling Las Vegas market that forced Pulte to slash prices there, BusinessWeek said.

A California property investor recently filed a lawsuit against a Pulte subsidiary alleging he was unable to sell two Las Vegas homes purchased from Pulte because the builder created an instant $100,000 loss when it slashed prices on new homes within the same community last September.

Pulte, which says it has been named a best performer for four consecutive years, has managed to outperform other companies by spreading its bets demographically, catering to first-time buyers and move-ups and having one-third of its sales come from new retirees, according to the magazine. To offset the risk rising rates impose on its sales growth, Pulte's cost reduction efforts include experimenting with computerized methods of factory pre-assembly, and the January selling of its Argentine unit, which analysts expect will be followed by divestiture of its Puerto Rico and Mexico units.

Pulte defied the industrywide trend of decreased volume last year -- loan origination principal soared 51% annually to $6.3 billion, with 84% of its originations coming from homes it sold domestically, according to its financial statements.

The Michigan-based builder was recently commended by the Wall Street Journal for its shareholder return performance, and has made several FORTUNE magazine rankings.

Leaping a great distance from its previous year's standing at 104, Bank of America squeezed onto the 2005 list in spot No. 50. The merger with FleetBoston Financial in October 2003, once considered a terrible deal, resulted not so bad after all. BoAs profits rose 31% last year to $14.1 billion and its shares returned 18.4%. Over the past three years, profits grew about 27% and total returns averaged about 62%, according to the magazine.

While Wall Street groaned and stock plunged 10% on the day BoA announced its $47 billion deal for FleetBoston, in its first year, the merged company managed cost savings of $909 million. Fleet's northeast stronghold enabled BoA to add nearly 200,000 consumer checking customers as well as new savings accounts, BusinessWeek said.

Such efforts assisted BoAs bottom line as the bank saw mortgage production plunge one-third annually to $87.6 billion.

When considering that the North Carolina-based bank employs 175,742 companywide, Pulte, with 13,000 employees, proves that the biggest aren't always the best.

Nonetheless, BoAs chief executive Kenneth Lewis, raked in compensation of $17.8 million last year and his net value of options exercised and held totaled $44.1 million -- much higher than the respective figures of $6.1 million and $6.9 million BusinessWeek listed for Pulte CEO Richard Dugas Jr.

Coco Salazar is an assistant editor and staff writer for MortgageDaily.com.

email: [email protected]

SUBSCRIBERS: Edit Subscription | Subscription Help | or call 214.521.1300

Subscribe Contact Us Site Map

Copyright © 2017 Mortgage Daily, D a l l a s
Subsribers Only:

AMC directory

ARM indexes

mortgage company directory

mortgage regulations

net branch directory

p r i c i n g engine directory

wholesale lender directory

More Mortgage News Resources (full site map):

advertising news

appraisal news

bank news

biggest lenders

commercial mortgage news

corporate mortgage news

credit news

FHA news

financial regulation news

foreclosure news

GSE news

jumbo mortgage news

interest rates

loan modification news

loan originator survey

LOS Newsletter


mortgage associations

mortgage-backed securities

mortgage books

mortgage brokers

mortgage compliance

mortgage conferences

mortgage directories

mortgage education

mortgage employment

mortgage employment index

mortgage executives

mortgage fraud

mortgage fraud blog

mortgage fraud local news

Mortgage Fraud Index

Mortgage Graveyard

mortgage insurance news

mortgage lawsuits

mortgage leads

mortgage lender ranking

mortgage licenses

mortgage litigation

Mortgage Litigation Index

Mortgage Market Index

mortgage mergers

mortgage news

mortgage politics

mortgage press releases

mortgage production

mortgage public relations

mortgage rates

mortgage servicing

mortgage statistics

mortgage technology

mortgage video

mortgage Webinars

net branch

net branch directory

nonprime news

origination news

originator tools

real estate news

refinance news

reverse mortgage news

secondary marketing

social media

servicing news

subprime news

wholesale lenders