Matrix Outsources Loan Administration
Matrix Bancorp here reported strong earnings in the second quarter and also made some changes to its mortgage servicing strategy.
Most notably, the company will no longer be servicing its portfolio in-house.
"During the quarter, we also made the strategic decision to transfer our servicing portfolio to a subservicer. The actual transfer will occur in the fourth quarter of this year. It is anticipated that outsourcing the servicing function will allow us to lower our overall cost structure and will convert much of the servicing cost to more of a variable cost vs. the fixed overhead that is currently associated with maintaining our servicing platform," said Richard Schmitz, chairman of the board and co-CEO, in a company press release.
Matrix also said that anticipating a rising interest rate environment for the rest of the year, the company removed its servicing hedge during the second quarter.
During the quarter, the company recovered $2.1 million of previously recorded impairment to its mortgage servicing rights valuation. But that was largely offset by hedging losses, Mr. Schmitz said.
Copyright 2004 Thomson Media Inc. All Rights Reserved. http://www.thomsonmedia.com http://www.mortgageservicingnews.com