Stonegate Profits Drop on Higher Costs
Stonegate Mortgage of Indianapolis, Ind., said Thursday that it swung to a net loss in the first quarter, driven by a sharp increase in company expenses.
The $1.2-billion asset company said that it lost $8 million, or $.031 per diluted share, compared to a profit of nearly $10 million the previous year.
Total company expenses more than doubled from the previous year, from $23 million to $51 million, while revenue remained flat at approximately $38 million
In a press release, the company attributed the loss to costs associated with its recent acquisition of Nationstar's wholesale lending channel, as well as adjustments in mortgage servicing rights.
The company's servicing portfolio more than doubled over the year, up 144% to 14 billion.