Quarterly earnings deteriorated at the parent of PrimeLending. In just the mortgage business, the company swung to a loss as sequential home-lending volume was lower.
Hilltop Holdings Inc. revealed in its first-quarter earnings report that income before income taxes came to $32 million during the three months ended March 31.
Mortgage origination income turned out to be a $3 million loss, swinging from a $10 million profit in the first-quarter 2017 and an $8 million profit in the fourth-quarter 2017.
Hilltop Co-Chief Executive Officer Alan White explained in the report, “PrimeLending experienced tighter gain on sale margins.”
The financial institution said mortgage earnings were hurt by increased competition in the marketplace and tightening secondary market spreads.
First-quarter 2018 single-family loan originations totaled $2.960 billion, falling from $3.603 billion three months earlier. But business was better than $2.824 billion one year earlier.
Refinance share was 20.3 percent,
the same as in the final-three months of last year.
Hilltop has ceased reporting details about its residential third-party servicing and asset portfolios. No data was reported this time around about mortgage headcount.