Principal Production Falls

1st quarter off from prior
By MortgageDaily.com staff
5/6/2003

Mortgage loan production continued at a brisk pace but fell slightly from last quarter for Principal Financial Group, Inc., according to the company's latest earnings statement.

Principal reported $15.5 billion in mortgage loan production, cooling off from fourth quarter 2002's $16.5 billion. Numbers are still soaring, though, compared to last year's first quarter report of $10 billion.

Totals for the servicing portfolio edged up $5.6 billion, on par with fourth quarter growth of $5.8 billion, according to the statements. As of March 31, 2003, the Iowa-based company serviced $113.3 billion in mortgage loans.

Operating earnings for the mortgage banking unit were reported at $52.3 million, nearly double first quarter 2002 and up from $29.1 million last quarter.

J. Barry Griswell, chairman, president, and chief executive officer, noted in the statement that mortgage banking was the largest contributor to the company's overall earnings, with the segment nearly doubling earnings.

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