Stonegate Mortgage in Indianapolis reported a wider loss in the third quarter, as it dealt with a decline in gains on the sale of loans and the value of mortgage servicing rights.
Stonegate's net loss ballooned to $22.8 million, or 88 cents per share, compared to a loss of $1.7 million, or 7 cents per share, a year earlier. Total revenue fell 44.6% to $34.9 million.
Net gains on mortgage loans held for sale dropped 8.5% to $40.3 million. Changes in the valuation of mortgage servicing rights increased to a $28.1 million loss, compared to a $4.8 million loss.
Loan servicing fees rose 13.8% to $14.1 million. Loan origination and other loan fees rose 3.2% to $8 million.
Mortgage loan originations fell 2% to $3.48 billion. Stonegate's mortgage servicing portfolio fell 1% to $18.2 billion in unpaid principal balance.
Stonegate's founder and CEO, Jim Cutillo, resigned in September, after the company disappointed investors because of its financial performance.
