Washtenaw Profits Plummet

The Washtenaw Group Inc., a holding company for Washtenaw Mortgage Co., Ann Arbor, Mich., that resulted from the wholesale mortgage company's spinoff from Pelican Financial Inc., has reported net income of approximately $117,000 ($0.03 per share) for the second quarter, down dramatically from $3.41 million ($0.76 per share) a year earlier.Mortgage origination volume totaled $384 million in the second quarter, down 70% from $1.3 billion in the second quarter of 2003. The company said the results for the quarter were aided by a valuation-adjustment charge of approximately $3.94 million to the mortgage servicing rights portfolio that was required under generally accepted accounting principles. Charles C. Huffman, chairman and chief executive officer of Washtenaw, said he was not happy with the results but that the company had performed well in view of the spinoff from Pelican and the industrywide downturn in residential mortgage activity. "We have quickly adapted to market conditions by downsizing, without compromising response time or service quality," he said. "We continue to increase our broker network, which exceeds 2,000 independent brokers across the U.S."