Cole Taylor Mortgage saw its revenues increase by 94% on a sequential basis in the first quarter while its mortgage servicing portfolio more than doubled in size, according to new figures released by the company.
In the earnings release from its parent company Taylor Capital Group, Mark Hoppe, president and CEO, said "In particular the performance of our mortgage division has been outstanding as we continue to build a sustainable business model that is not hindered by historical mortgage concerns. The mortgage business is gaining market share and is experiencing improving margins on mortgage sales in the secondary market."
The mortgage unit – which is just over two years old -- funded $895 million in the quarter, up 14% over the fourth quarter's $782 million. Its revenues climbed to $17.5 million during the period.
CTM is an active retail/wholesale funder, and is making inroads into correspondent as well.
In an interview with National Mortgage News, Cole Taylor Mortgage chief Willie Newman said the market opportunity for the young division is now greater than originally anticipated – both from an origination volume and profit margin standpoint.
Newman said the firm is prepared to move quickly in the second-half, thanks to its clean balance sheet.
Its servicing portfolio ended March at $2.4 billion – more than double the $1 billion it held at yearend. Newman said the company had planned to hold MSRs from the get-go but went slow in that regard. Now, it has accelerated the dollar amount of MSRs it hopes to keep.
Furthermore, Cole Taylor Mortgage became an active purchaser of mortgage servicing portfolios in the third and fourth quarters of last year.
Servicing is a great asset to purchase, Newman said, pointing out its countercyclical nature to the origination side of the business. It gives the company diversity and a revenue stream.
