Servicing portfolio reaches $28.9 billion
By MortgageDaily.com staff
2/28/2003

Option One Mortgage Corp. reported increases in origination and in it servicing portfolio during what was the company's third quarter.

For the three months ending Jan. 31, the subprime lender produced $4.5 billion in mortgage loans, a 55.2% increase from the $2.9 billion the same time last year. The third quarter total represents an 16.8% rise from second quarter's originations.

Option One, a mortgage subsidiary of H&R Block, Inc. experienced a 27.3% increase over last year in its servicing portfolio during its third quarter to $28.9 billion.

"The performance of our mortgage businesses continues to be outstanding," said Mark A. Ernst, CEO of H&R Block. "Growing origination in all of our channels, high quality service to our borrowers, and careful attention to solid underwriting have allowed us to continue building momentum in this business while growing our cash earnings."

Option One was one of several other lenders defrauded by a New York builder and his co-conspiring family members, whose trial was in late January. Option One had to take a $2.3 million loss on the ring's fraudulent loans, but the loss wasn't large enough to affect the company's earnings, a spokesman said.

Other defrauded lenders in the case included Bank of America, Chase Manhattan Mortgage Corporation, Citigroup Mortgage, Countrywide Home Loans, Flagstar Bank, and Washington Mutual Bank.

Shares of parent H&R Block were up $0.60 at $40.65 near midday trading, according to CBSMarketwatch.com.

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