Stonegate Mortgage Corporation’s (SGM) mortgage loan origination volume increased 21% to $3.44 billion during the second quarter of 2015, up from $2.84 billion in the first quarter of 2015, and up 4% from $3.31 billion in originations during the second quarter of 2014.
For the first half of 2015, mortgage loan origination volume grew 10% to $6.28 billion compared to $5.73 billion in originations for the six months ended 2014.
"We saw growth in our origination and financing segments in the second quarter. Servicing produced strong book value growth as interest rates rose during the period and our previously originated mortgage servicing rights became more valuable,” said Jim Cutillo, CEO of Stonegate Mortgage.
“Conversely, payoffs in the servicing portfolio remained elevated in the second quarter as the increased refinance applications in the first quarter turned into fundings," he added.
Revenues surged 97% to $87.4 million in the second quarter of 2015, up from $44.3 million in the first quarter of 2015, and up 52% from $57.6 million in the second quarter of 2014.
The increase over the prior quarter was primarily due to an increase in the fair value of our MSRs, while the increase over second quarter 2014 was primarily due to increases in gains on mortgage loans held for sale, net, and an increase in the fair value of our MSRs.
Net income for the second quarter 2015 reached $11.1 million, or $0.43 per diluted share, compared to net loss of $11.1 million, or $0.43 per diluted share in the first quarter of 2015, and net income of $0.3 million, or $0.01 per diluted share in the second quarter of 2014.
Stonegate’s servicing portfolio, as measured by unpaid principal balance, was $17.24 billion at June 30, 2015, an increase of 2% over the March 31, 2015 UPB of $16.96 billion and down 6% from the Dec. 31, 2014 UPB of $18.34 billion.