Cendant Weathers Impairment
Cendant Corporation, citing strength from its mortgage origination business, earned $0.37 per share from continuing operations in the second quarter, up 61% from the same period a year earlier.
Cendant said it experienced an 89% increase in mortgage revenue, which was partially offset by $256 million of amortization and impairment to its mortgage servicing rights. The company's mortgage unit contributed $266 million to its $1.8 billion of revenue related to real estate services in the second quarter.
Cendant CFO Ronald Nelson told investors that the company's MSR portfolio serves as a natural hedge, since it will rise in value if rates rise and refinancing drops.
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