| Household Net Drops
Settlement impacts year over year performance January 16, 2003 By MortgageDaily.com staff |
| After a rough year, Household International, Inc. reported an increase in net income during the fourth quarter, but experienced a decrease since last year.
The subprime lending company reported $338 million in net income for the fourth quarter. This is an almost 53% increase from third quarter’s $221 million, but an almost 37% decrease from the $533 million total of fourth quarter 2001. Household reported $1.6 billion for the year 2002, compared with $1.8 billion during 2001. In October, the company announced a settlement with dozens of state regulators and attorneys general who alleged predatory lending. Consequently, Household paid a $333 million settlement charge, after tax, and took it out of its third quarter income. For the fourth quarter, the Prospect Heights, Ill.-based company announced $45.8 billion in real estate-secured owned receivables, an almost 5.6% decrease from third quarter’s $48.5 billion. Last year at this time, real estate-secured owned receivables totaled almost $43.9 billion. Real estate-secured managed receivables totaled almost $45.3 billion, a 5.5% decrease from third quarter’s $49.0 billion. During the same time last year, real estate-secured managed receivables totaled $44.7 billion. Real estate-secured assets made up 43.0% of Household’s managed portfolio during the fourth quarter, compared with 45.6% during the third quarter and 44.4% during fourth quarter 2001. Securitization revenue on an owned basis totaled $536 million during 2002, a 5% increase from the fourth quarter of 2001. The company does not release mortgage origination figures, a company spokesman said. |
