Mortgage Business Grows at Hilltop Holdings

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MORTGAGE EXPERT
10 · 28 · 16

The parent of  PrimeLending reported that mortgage earnings, originations and servicing all increased on a quarter-over-quarter and year-over-year basis.

Income before taxes at the bank-holding level came to $86 million during the three months ended Sept. 30.
Earnings surged from the previous quarter’s $50 million.

Those details, along with a plethora of other operational and financial metrics, were presented by parent Hilltop Holdings Inc. in its third-quarter earnings report.

Income at the Dallas-based company also ascended from a year previous, when the total was $73 million.

Within just the mortgage origination segment, earnings were $31 million,
moving up from $28 million in the second quarter and soaring from just $12 million in the third-quarter 2015.

“The increases in income before income taxes during the three and nine months ended Sept. 30, 2016, compared to the same periods in 2015, were primarily due to increases in noninterest income, partially offset by increases in segment operating costs and compensation that varies with the volume of mortgage loan originations,” the report stated.

From July 1, 2016, through Sept. 30,
there were 19,330 residential loans originated for $4.493 billion.
All production was generated through the retail channel.

Home lending came to $4.150 billion in the prior three-month period and 16,672 loans for $3.639 billion a year prior.

For all nine months of 2016 that have elapsed, mortgage originations amounted to 50,441 loans for $11.572 billion.

Conventional loans accounted for two-thirds of the latest quarter’s volume, while government share was 23 percent and jumbo share was 7 percent.

Refinance share was
29.0 percent in the third-quarter 2016, jumping from just 21.4 percent the prior period.

The bank serviced $5.491 billion for others as of the close of the third-quarter 2016. The third-party servicing portfolio expanded from $4.845 billion as of mid-2016 and $5.052 billion as of the same date last year.

As a percentage of loans serviced, the mortgage servicing rights asset was 0.80 percent.

Hilltop ended the latest period with $50 million in representation-and-warranty specific claims.

There were 5,500 people on Hilltop’s payroll as of the end of last month, 100 more than at the end of June.

The company operated 450 locations as of Sept. 30, 2016,
no different than at the end of the previous quarter.

Mortgage Expert

Mortgage Daily Staff

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