Mortgage Earnings, Originations Up at PrimeLending

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MORTGAGE EXPERT
7 · 27 · 16

Home lending picked up from the previous quarter and the year-previous period at PrimeLending. Mortgage income was strong for the bank-holding company.

Residential loan production for the three months that finished on June 30 totaled $4.150 billion.

Business
was better than in the first quarter of this year, when originations totaled $2.929 billion.

Lending also grew from the second-quarter 2015, when $3.834 billion in home loans were closed.

Those were among the details in a Form 10-Q filing by parent Hilltop Holdings Inc. with the Securities and Exchange Commission for the second quarter 2016.

First-half mortgage production amounted to $7.080 billion.

Of second-quarter 2016 business, $2.593 billion was conventional, $1.035 billion was government and $0.349 billion was jumbo.

Refinance share
was 21.4 percent, thinning considerabley from 30 percent as of three months earlier and 24.0 percent twelve months earlier.

As of June 30, 2016, PrimeLending’s $1.5 billion warehouse line with Hilltop had $1.4 billion outstanding. The line was temporarily raised to $1.8 billion but will drop back down to $1.5 billion on Oct. 1.
Another $15 million was outstanding on a $20 million Wells Fargo Bank, N.A., line.

Mortgages serviced for others totaled $4.845 billion as of mid-2016, less than the $5.004 billion serviced as of the end of the first quarter.  In the same quarter last year, the serivcing portoflio was $5.052 billion.

Income earned before taxes from mortgage originations was $28 million.
Mortgage income soared from just $9 million earned by the mortgage unit in the first-quarter 2016. It also improved from $21 million in the second-quarter 2015.

Dallas-based Hilltop said
it earned $50 million before income taxes across the entire organization, more than the $43 million that was earned during the first-three months of this year. Income also rose from the same period last year, whent the profit was $49 million.

There were 5,400 people on Hilltop’s payroll as of mid-2016. Staffing
expanded by 100 employees compared to three months earlier.

Branch count was 450, fifty more than as of March 31.

Author

Mortgage Daily Staff

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