Stonegate Mortgage didn’t get away from the financial impact of the first quarter’s historically low interest rates, which already dented the performance of most other lenders. But the results weren't fully marred by bad news. Here's one area where the lender performed better.
Impac’s earnings plummeted from last year and even last quarter, but the company isn’t worried, and even feels that it had a strong start to the year. In this exclusive interview with HousingWire they explain why.
Mortgage banking net revenue was up 7% to $1.9 billion, which the bank's earning statement attributes to "higher MSR risk management results and strong loan growth, partially offset by lower servicing revenue."
Originations decreased 48% from the first quarter of 2013, down to $353.1 million. Impac attributes most of that to the sale of their brick and mortar branches at the end of last year, which accounts for $180 million of the decline.
Zillow first-quarter earnings reflect the strong year it had traffic-wise, breaking records in both March and April. The company's first-quarter revenue hit $66.2 million, up 70% from $39 million for the same period a year ago.
The mortgage industry is leveraging technology like never before, streamlining processes across the spectrum of lending, servicing, investing and real estate. The combination of regulatory pressure and consumer expectations have set a high standard for efficiency and transparency, requiring a significant investment of time, money and talent to hit the right notes for both.
Ironically, the monkey on the mortgage industry’s back for the past 10 years — increasing regulation — is the very thing that forced companies to find efficiencies in every part of the process, which serves them well as they look to engage tech-savvy consumers. Even as the enforcement of some of those regulations is now in question, the long-lasting benefits of investing in automation will stand.
Mortgage banks have traditionally been slow to embrace new technologies, and while the technology that has improved efficiency, security and customer experience in a multitude of other industries (transportation, education and retail, to name a few) is finding its way into the loan production process, a lot of opportunity still exists in other stages of the mortgage life cycle.