From record boom to sharp comedown
Originations at Cendant sink heading into 2004, as the company’s mortgage arm feels the hangover from one of the biggest refinance booms on record.
Through 2002 and 2003, Cendant Mortgage (now PHH Mortgage) rode low rates and a powerful refi cycle, helped by a built-in referral network from sister real estate brands such as Century 21 and Coldwell Banker. Industry league tables showed the platform among the country’s larger home-loan producers, touching tens of billions of dollars in annual volume at the peak.
By early 2004, however, refinancing demand had cooled markedly. With rates off their lows and the easiest refi candidates already done, Cendant’s latest numbers showed production well below the prior year’s highs, prompting Mortgage Daily’s headline that originations at Cendant had “sunk.”
Still a major player – just in a smaller market
The decline in originations at Cendant sink in the context of a broader market reset. Industry research and GSE reporting describe 2003 as a record year for mortgage originations and refis, followed by a noticeable step down in 2004 as the pipeline emptied and purchase business had to pick up more of the slack.
Even with lower volumes, Cendant’s mortgage operation remained a key force:
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It continued to originate and service loans for major financial institutions on a private-label basis.
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Parent company Cendant Corp. was still reporting strong overall revenue growth, with mortgage and settlement services carved out as a discrete reporting segment.
The message for MortgageDaily readers in early 2004: originations at Cendant sink from the refi peak, but the platform is far from out of the game – it is simply adjusting to a more “normal” market.
