Legal settlement, origination decline reduce CoreLogic earnings
A legal settlement and origination decline drove CoreLogic's earnings in the third quarter down to $31 million from $36 million a year ago.
CoreLogic recently settled litigation involving allegations that its CoreLogic National Background Data unit distributed inaccurate records about some job applicants.
The company also is contending with a 25% drop in U.S. origination units. The previous quarter's decline in originations was lower at 15%.
Revenue at CoreLogic totaled $483 million during the quarter. While this amount was down from $524 million during the same period last year, it was up from the previous quarter's $474 million.
"Our core mortgage operations have unmatched scale and capabilities which ensure we are strategic partners to our clients and allow us to continue to significantly outperform U.S. mortgage market volume trends,” said President and CEO Frank Martell in a company press release.
Other highlights of the quarter included the closing of CoreLogic's purchase of Mercury Network, which it previously had purchased 45% of in June for $70 million. The company paid $83 million for the remaining 55% of Mercury in August.
Also in August, CoreLogic amended its senior secured credit facility so it could increase borrowing capacity by more than $500 million.
The company's cash and cash equivalents totaled $149 million in the third quarter. Its total debt was $1.82 billion and it had $700 million in available capacity on its revolving credit facility.
The company repurchased 2 million common shares during the third quarter, bringing its year-to-date share repurchase total to 3 million shares.