Washtenaw Reports 3Q Loss

The Washtenaw Group Inc., Ann Arbor, Mich., has reported a loss of $2.26 million ($0.50 per share) for the third quarter, compared with record net income from continuing operations of $3.83 million ($0.86 per share) a year earlier.Washtenaw Group, the parent of Washtenaw Mortgage Co., was spun off from Pelican Financial Inc., also of Ann Arbor, on Dec. 31, 2003. For the first nine months of the year, Washtenaw has lost $5.25 million ($1.17 per share), compared with net income from continuing operations of $9.9 million ($2.22 per share) for the same period in 2003. The results for the third quarter of 2004 were lowered by a mortgage servicing rights impairment of $101,000. In the third quarter of 2003, the company had a valuation credit of $2.2 million. Losses on loan repurchases for the third quarter totaled $1.6 million. Meanwhile, mortgage origination volume was one-fifth of what it was one year ago, going from $1.0 billion in the third quarter 2003 to just $212.2 million for the most recent period.