Recent writedown hurts earnings
By MortgageDaily.com staff
10/24/2002

Cendant Corporation announced a boost in mortgage loan closings during the third quarter and a drop in earnings.

The company reported an almost 34% increase in mortgage loan closings from year to year: $11.24 billion during third quarter 2001 to $15.02 billion this year, according to the report.

Its average servicing portfolio for the quarter was $108.3 billion, an almost 19% increase from last year's $91.3 billion.

It reported its net income for the quarter at $250 million, compared with $210 million during the same time last year. However, Cendant said it took a pre-tax $275 million write-down on mortgage servicing rights that dropped its earnings.

"Although our reported mortgage servicing earnings were negatively impacted by unprecedented levels of refinancing activity, our servicing portfolio grew and recurring cash flow increased," said Henry R. Silverman, Cendant chairman, president, and chief executive officer.

Cendant derives mortgage volume from the real estate franchises it owns.

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