Stonegate Mortgage Corporation provided preliminary operating metrics for the fourth quarter ended Dec. 31, 2013, which illustrate performance in key areas of the company’s business. Select preliminary operating metrics for the fourth quarter of 2013 are as follows:
►Mortgage loan origination volume increased 1.7 percent to $2.4 billion during the fourth quarter of 2013 compared to $2.3 billion in the third quarter of 2013, and increased 70.2 percent over the fourth quarter of 2012.
►Purchase transactions represented 72 percent of origination volume in the fourth quarter.
►In the fourth quarter of 2013, gross locks were $3.0 billion compared to $2.97 billion in the third quarter of 2013, and increased 45 percent over the fourth quarter of 2012.
►Stonegate Mortgage’s servicing portfolio, as measured by unpaid principal balance, ended the fourth quarter of 2013 at $11.9 billion, an increase of 23 percent from third quarter of 2013 ending UPB of $9.7 billion and up 188 percent over the fourth quarter of 2012 ending UPB of $4.1 billion.
►For the fourth quarter 2013, Stonegate Mortgage’s wholly owned operating subsidiary, NattyMac LLC funded $72.7 million in loans for its correspondents. The average outstanding balance, including Stonegate’s inventory, in the fourth quarter of 2013 was $555 million as compared to $574 million in the third quarter of 2013.
►Stonegate Mortgage added approximately 600 new third party originators in the fourth quarter, with approximately 400 of those resulting from the purchase of NationStar Mortgage‘s wholesale origination assets.
►Crossline Capital, a wholly-owned operating subsidiary acquired by Stonegate Mortgage on December 19, 2013, funded $119 million of residential mortgages for the full fourth quarter of 2013. Additionally, Crossline Capital signed a non-binding letter of intent to acquire Medallion Mortgage Company, a southern California mortgage originator that funded $73.3 million in mortgages in the fourth quarter of 2013. There can be no assurances that the acquisition of Medallion Mortgage Company will be completed on the terms proposed, if at all.
“Despite the industry headwinds, we continue to execute on our strategic plan, resulting in growth in our businesses,” said Jim Cutillo, CEO of Stonegate Mortgage. “We successfully completed two acquisitions in the quarter which position us to grow both our retail and wholesale/mini-correspondent business in 2014. We expanded our warehouse lending business and increased wallet share with those correspondents who are utilizing NattyMac. We also continued to build out our non-agency conduit and invested in technology which positions us to capitalize on the emerging market, by creating capital and operational efficiency. We also continue to evaluate additional retail tuck-in acquisitions in our growing pipeline.”