$8.6 billion fiscal 3rd quarter fundings
By MortgageDaily.com staff
2/24/2006

Quarterly originations tumbled at Option One Mortgage Corp.

Origination volume from overall mortgage operations was $9.0 billion in the quarter ended Jan. 31, off 29 percent from record volume posted in the fiscal second quarter, H&R Block Inc. announced Thursday. A year ago, fiscal third quarter production was at $8.4 billion.

H&R attributed the quarter-to-quarter downturn primarily to "interest rate increases and the somewhat slower U.S. housing market."

"Loan origination levels have been at the lower end of our expectations as competitive pressures in the industry continue," said Mark A. Ernst, chairman and chief executive officer, in the announcement. "We continue to take those actions that we believe will optimize the profitability of our business going forward."

Nonprime-lending arm Option One originated $8.6 billion of the latest fundings. Of that total, wholesale loans accounted for 92 percent and the rest were retail-originated mortgages, according to the announcement.

The $76.8 billion mortgage servicing portfolio as of Jan. 31, 2006, for Irvine, Calif.-based Option One was 7% smaller than at the end of the fiscal second quarter, the parent company reported.

Net earnings were $28.8 million, improving from a net loss of $72.2 million in the prior quarter, H&R reported.

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