EverBank Financial Corp. more than doubled its profit in the first quarter as residential origination volumes expanded 52% over year ago levels and asset qualities improved.
But the bank’s mortgage business is somewhat mixed in terms of overall results for the period.
The company, which posted $39 million in 1Q profit – an increase from $11.8 million a year earlier – noted its residential loan originations held flat at $2.9 billion in the first quarter. While that’s virtually unchanged from the previous quarter, it’s still up 52% from year ago levels.
In 1Q, the company agreed to purchase $13 billion of unpaid principal balance Fannie Mae residential servicing rights for $68 million.
Analysts with Compass Point Research & Trading note “the loans have an average servicing fee of 27 basis points and 25% of the loans are eligible for refinance through HARP. Special servicers have been buying distressed portfolios for 50-60 basis points.”
The company’s loan servicing fee income fell somewhat from $45.5 million last year to $42.1 million in the most recent first quarter, but its net loan servicing income rose from $1 million to $19.6 million year over year.
