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Company Links |
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Company Strategy |
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The Company originates, purchases, and services non-conforming residential mortgage loans. |
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Product/Services Portfolio |
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The Company’s wholesale channel purchases and originates non-conforming residential mortgage loans through non-exclusive relationships with various mortgage companies and mortgage brokers. The Company provides a variety of mortgage products to its brokers that allow them to better service their customers. Mortgage brokers identify applicants, help them complete loan application paperwork, gather required information and documents, and act as the Company’s liaison with the borrower during the lending process. The Company reviews and underwrites an application submitted by a broker, accept or reject the application, determine the range of interest rates and other loan terms and, upon acceptance by the borrower and satisfaction of all conditions to the loan, fund the loan. In some instances, brokers will close the loan using their sources of funds, and then sell the Company the closed loan after the Company underwrites it. By relying on brokers to market the Company’s products and assist the borrower throughout the loan application process, the Company can increase loan volume through the wholesale channel without increasing marketing, labor, and other overhead costs incurred in connection with retail loan production.
New brokers enter the Company’s wholesale network from various sources. The Company’s account executives and the Company’s website are the main sources for new brokers. Brokers must meet various requirements and must complete the broker application package, provide evidence of a state license, articles of incorporation, financial statements, resumes of key personnel, and other information as needed. The wholesale channel’s management reviews this information to determine if the broker should be approved.
The Company’s on-going investment in technology has allowed the Company’s to provide its broker network with the ability to obtain on-line loan approvals and pricing in seconds.
The Company enters into loan purchase and sale agreements with mortgage bankers, banks, thrifts, and credit unions to sell non-conforming residential mortgage loans to us through its correspondent channel.
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Investment Analysis |
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Net income increased $37.7 million, or 138%, to $65.1 million for 2003, from $27.4 million in 2002.
Total net revenues increased $76.9 million, or 57%, to $211.4 million for the year ended December 31, 2003, from $134.5 million for the year ended December 31, 2002.
Payroll and related expenses increased $4.9 million, or 10%, to $55.3 million for 2003, from $50.4 million for 2002.
Deferred payroll and related expenses increased $7.7 million, or 39%, to $27.7 million in 2003, from $20.0 million in 2002, mainly due to an increase in production and an increase in the Company’s net cost to produce during 2003.
General and administrative expenses increased $12.5 million, or 31%, to $52.8 million for 2003, from $40.3 million for 2002.
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Income Data |
| Year |
Revenues |
Costs |
Oper Income |
Taxes |
Net Income |
EPS |
| 1996
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10017 |
9647 |
0.00 |
11230 |
19232 |
0.00 |
| 1997
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34128 |
20975 |
0.00 |
17654 |
30046 |
0.00 |
| 1998
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35794 |
18817 |
0.00 |
7398 |
12018 |
0.00 |
| 1999
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45818 |
21342 |
0.00 |
21228 |
36648 |
0.00 |
| 2000
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34444 |
24875 |
0.00 |
-24084 |
-48520 |
0.00 |
| 2001
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14419 |
10962 |
0.00 |
-19123 |
-27540 |
0.00 |
| * Six Months ended June 30, 2001
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- Avoid 
- Value Gap 
- Short-Term Growth
- Long-Term Growth 
- Long-Term Value 