The third-quarter proved to be a strong one for Stonegate Mortgage Corporation’s originations department, with total originations and total revenue up and total expenses down, making the perfect blend for a positive quarter.
According to the nonbank’s third-quarter earnings, total originations hit $2.62 billion, up 12% from the prior quarter, while total origination revenues reached $51.8 million, up 35% from the prior quarter.
A strong increase in Stonegate’s retail channel helped drive growth, with originations increasing 27% from the prior quarter results.
At the same time, total origination expenses fell 9 basis points from the prior quarter.
As a whole, Stonegate’s total revenues during the third quarter of 2016 increased to $66.3 million, up $39.8 million, or 150%, compared to the second quarter of 2016.
When compared to the third quarter of 2015, revenues were up $40.7 million, or 159%.
The increase in revenues during the third quarter of 2016 was predominantly the result of favorable changes in the fair value of our MSRs and increases in gains on mortgage loans held for sale, partially offset by lower servicing fee income from a decline in our average servicing portfolio, Stonegate stated.
"We are extremely pleased to report strong GAAP and adjusted net income for the third quarter," said Jim Smith, CEO. "Our business platform was well prepared to benefit from increased production levels during the quarter and, as a result, we achieved GAAP earnings of $15.6 million and adjusted net income of $11 million.”
"We continue to be highly focused on maintaining prudent liquidity and MSR debt levels, as well as fully leveraging our cost structure,” he concluded.