After stepping away from the mortgage side of the business back in 2012, Ally Financial is showing steady progress back into the space as it develops its mortgage business.
Ally Home Bank has less than a year under its belt but has already launched some major initiatives such as a price match guarantee program.
According to the company’s third-quarter earnings, the bank recorded pre-tax income of $2 million in the quarter, compared to $8 million in the prior year period.
Net financing revenue was up $7 million year-over-year to $32 million, with total assets up $1.9 billion in the past year driven primarily by bulk mortgage purchases.
However, exacts details on the Ally Home Bank’s mortgage division was still scarce.
Tucked into the bank’s supplemental earnings, Ally reported that total consumer mortgage loans grew to $9.8 million in the third quarter, which is up from $7.9 million in the third quarter of last year.
For added comparison, that total consumer mortgage loans came in at $8.9 in 2Q17, $8.3 in 1Q17, and $8.3 in 4Q16.
It’s important to note that the bank didn’t announce its direct-to-consumer mortgage offering, Ally Home, in December.
After the housing crisis, Ally fell on hard times. Eventually, the company announced it would slowly leave the mortgage industry, and then put the final nail in the coffin as it reported its successful move away from mortgages.
But in December of 2015, the company said it would be re-entering the market slowing during 2016, revealing Ally Home by the end of the year.
Ally CEO Jeffrey Brown touched on the mortgage business in his earnings comments, saying, “We continue to navigate the cyclical dynamics within auto finance, while driving higher risk-adjusted returns on new originations and maintaining credit discipline. Our mortgage and wealth management businesses continue to develop as we elevate Ally’s banking franchise in the marketplace and deepen customer relationships.”
“We remain in a strong position to drive shareholder value and deliver long-term earnings growth,” he concluded.