Quarterly earnings at Stonegate Mortgage Corp. swung to a profit from a loss three months and a year prior. Originations rose, but the servicing portfolio tumbled.
Prior to income taxes, Stonegate earned $16 million during the three months ended Sept. 30, 2016. Earnings swung from a $29 million third-quarter 2015 loss.
Details about the Indianapolis-based organization’s financial and operational results were discussed in its third-quarter 2016 earnings report released Thursday.
Income also swung from a $17 million loss in the second quarter of this year.
“Our business platform was well prepared to benefit from increased production levels during the quarter,” Stonegate Chief Executive Officer Jim Smith said in the report.
Residential loan originations during the three-month period that finished on Sept. 30 totaled $2.621 billion. Business improved from $2.343 billion in the second quarter. But activity fell short of the $3.200 billion in production during the the third-quarter 2015.
From Jan. 1, 2016, through Sept. 30, mortgage originations worked out to $6.906 billion.
Third-quarter 2016 volume was comprised of $0.364 billion in retail originations, $0.597 billion in wholesale lending and $1.660 billion in correspondent acquisitions.
While fourth-quarter production is poised to ascend further based on mortgage loan lock volume, which rose to $3.6 billion in the third quarter from $3.3 billion the prior period, average daily lock volume in October was down 26 percent from the third quarter.
Stonegate serviced $14.617 billion in mortgages as of Sept. 30, 2016. The servicing portfolio was raised from $14.138 billion three months earlier, but reduced from $18.165 billion a year earlier.
Warehouse lending receivables stood at $0.168 billion as of the close of the third-quarter 2016.
