$8.2 billion fiscal 3rd quarter volume
By MortgageDaily.com staff
2/25/2005

The addition of new wholesale account executives sparked a jump in volume for Option One Mortgage Corp.

The subprime lender's originations of $8.2 billion during its fiscal third quarter soared from the previous quarter's $6.3 billion, according to the latest financial supplement report of parent company H&R Block. At this time last year, volume was reportedly $5.2 billion.

The upturn for the third quarter, which ended Jan. 31, 2005, was attributed to an increase in the number of account executives.

"Our mortgage operations experienced improved productivity and performed well despite competitive pressures this quarter," said H&R chief executive Mark A. Ernst in the earnings announcement. "We plan to continue to focus on aggressively controlling origination costs while maintaining our preferred provider status with the brokers we serve."

Wholesale originations reportedly accounted for 90% of the latest volume, while retail channels contributed the rest.

The total cost of origination dropped 37 basis points during the third quarter to 2.70%, the report said.

The weighted average FICO score for loans was 615, the parent company reported, while the weighted average LTV was 79% and the weighted average coupon was 7.30%.

H&R said that fiscal quarterly net income totaled $92 million -- a 14% downturn from the prior quarter.

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