| Household Net Plummets
3rd quarter earnings hurt by settlement October 21, 2002 By MortgageDaily.com staff |
| Household International Inc. reported a plummet in net income during the third quarter, the result of a huge settlement charge.
The company announced $221 million in net income for the third quarter, a 57% decrease from second quarter’s record $507 million in net income. That’s also an almost 55% dip from last year’s $486 million total during the 3rd quarter. Earlier this month, the company announced a settlement with dozens of state regulators and attorneys general who alleged predatory lending, according to The Wall Street Journal online. Household would have earned $554 million in net income during the third quarter had it not been for the $333 million settlement charge (after tax), the company’s report said. Household’s servicing portfolio totaled $49 billion at the end of the quarter, and its managed basis portfolio totaled $107.6 billion, a 12% increase from last year, the report said. The company does not release mortgage loan production figures, a company spokeswoman said. |
