LandAmerica Grows Mortgage Outsourcing Business
LandAmerica Financial Services here, a title insurance firm and provider of services to the mortgage industry, saw a modest rise in net income during the second quarter, despite a modest decline in revenue and earnings from its lender services division.
But the company also reported that some aspects of lender services - including subservicing and closing services - actually saw improvement from the same period last year.
LandAmerica Financial Services said net income totaled $35.6 million in the second quarter, up from $30.2 million in the second quarter of last year. However, net income for the first six months of 2006 was actually lower than during the same period in 2005.
LandAmerica generated $59.7 million in revenue from its lender services unit, which includes LoanCare Servicing Center, a provider of subservicing for mortgage clients. That was down 8% from the year earlier period.
However, the company noted that the 2005 second-quarter results included $6.9 million of "accelerated deferred revenue" related to its tax and flood business.
Subtracting out the accelerated revenue from last year, the lender services revenue actually rose slightly this year, the company said.
LandAmerica said that growth in its subservicing business and title and closing units were offset in part by lower volume in the credit services business. According to figures compiled by Mortgage Servicing News, LoanCare's subservicing volume was $12.6 billion as of June 30, up 146% from one year earlier.
Theodore Chandler, president and CEO of LandAmerica, said that the company was pleased to achieve the results it did in light of a softening housing market. He said in the earnings report that the company gained market share in the title business during the quarter.
AT A GLANCE: LandAmerica's Lender Services Earnings
2nd Qtr 2006 $6.5 Million
2nd Qtr 2005 $8.8 Million
SOURCE: Landamerica (c) 2006 Mortgage Servicing News and SourceMedia, Inc. All Rights Reserved. http://www.mortgageservicingnews.com http://www.sourcemedia.com