Home Point Financial Corp. is a nationwide mortgage lender and servicer that provides a wide range of services to customers in the United States and Canada. Despite its expansive services, the company has reported a decrease in earnings for the third quarter of 2020, resulting in a net loss of $11 million.
This decrease in earnings is attributed to Home Point’s focus on streamlining the company and its services. During the third quarter, Home Point took the initiative to reduce staff, sell excess personnel and better align with the company’s strategic priorities of core portfolio performance, client service and technology. These actions resulted in a net loss of production income and personnel-related expenses, which drove the reported losses.
Despite the decrease in earnings, Home Point is also reporting an increase in total originations. During the third quarter, the company’s total originations exceeded $13.3 billion, an increase of 5 percent year over year. This increase can be attributed to Home Point’s integration of data-driven insights in its operations and ability to close loans quickly and efficiently. Home Point’s origination of mortgage loans sourced by its network of specialized and independent mortgage brokers also increased significantly.
Home Point is also reporting an increase in overall loan production revenue, totaling more than $65 million, which is a 6 percent increase when compared to the second quarter and a 25 percent increase compared to the third quarter of 2019. The company is also focusing on improvements in servicing, which were up 13 basis points when compared to the third quarter of 2019 and 8 basis points compared to the second quarter of 2020.
The third quarter report from Home Point indicates that the company is taking the necessary steps to reduce costs and streamline operations in order to remain profitable. Despite a decrease in earnings and personnel, Home Point is still achieving increases in total originations, loan production revenue, and servicing. By continuing to focus on the company’s strategic initiatives, Home Point is ensuring a more profitable future.
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