Company sees negatives in servicing portfolio
By MortgageDaily.com staff
8/6/2003

Quarterly production rose for another originator, the company said.

Principal Financial Group, Inc. reported loan production of $17.1 billion for the second quarter of 2003. This number represents a quarterly record, the statement said. Production has bounced back from $15.5 billion the prior quarter and $16.5 billion for the quarter ending in December 2002. Last year's second quarter production was $9.1 billion, according to a company statement.

"Mortgage banking was a key growth driver," said J. Barry Griswell, chairman, president and chief executive officer in the statement, referring to the group's earnings per share.

The Iowa-based group's mortgage servicing portfolio closed at $115.4 billion, the statement said. Though the growth in portfolio size was a noticeable $2.1 billion, growth in the two prior quarters topped $5 billion in each, according to company statements. Since this time last year, the portfolio has increased $18.9 billion.

Operating earnings for the mortgage banking unit totaled $45.1 million for the second quarter 2003, down from $52.3 million in the prior quarter, the company said. Second quarter 2002, operating earnings totaled $24.8 million.

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