Washtenaw Reports $3.1 Mil. Loss

The Washtenaw Group Inc., Ann Arbor, Mich., has reported a loss of $3.1 million ($0.69 per share) for the first quarter, compared with a profit of $2.7 million ($0.60 per share) a year earlier.This is the first quarter Washtenaw is reporting as a stand-alone company. Until Dec. 31, 2003, its subsidiary Washtenaw Mortgage Co. was a subsidiary of Pelican Financial Inc. Washtenaw was hurt both by reduced origination volume for the quarter, as well as a valuation adjustment to its servicing portfolio of $2.9 million, equivalent to $0.65 per share. One year earlier the adjustment was $1.8 million or $0.40 per share. Mortgage origination volume was $395.6 million, less than half of the $896.9 million of production from the first quarter of 2002. Charles C. Huffman, chairman and chief executive of Washtenaw, said, "We're hopeful that the spring and summer home buying season will lift new mortgage volume and that homeowners will return to the refinance market because rates are still very attractive even though they are up from recent lows."