First National saw originations skyrocket in the second quarter, rising 48 per cent from the year-ago period – something it chalks up to FirstLine`s departure.
"During the second quarter of 2012, the Company was extremely pleased with its results," said Stephen Smith, chairman and president Monday. “With a strong presence in the mortgage channel and the exit of one of our biggest competitors there, First National produced record origination levels."
Overall mortgage originations climbed to $4.4 billion from $3.0 billion in the three months ending June 20, 2012, compared to the 2011 second quarter. That’s a 48-per-cent spike, which grew mortgages under administration by 14 per cent year-over-year to $63.7 billion. Revenue increased by 29 per cent year-over-year from $121.6 million to $157.0 million.
First National is expecting the good times to roll on into the third quarter.
“Looking ahead to the third quarter, management sees its growing market share in the mortgage broker channel remaining strong,” said Moray Tawse, VP for mortgage investments. “Despite the negative impact of the government's measures to mitigate a potential housing bubble implemented in early July, the company believes overall origination volumes will exceed the levels recorded in 2011."
The projection isn’t solely based on FirstLine’s official wind-down Tuesday, although other broker lenders are just as likely to benefit from that development, argue brokers.
“Scotia, First National, Street and MCAP should benefit about equally,” said Ron Butler, of VERICO Butler Mortgage Inc., earlier this month. “It is very unlikely that one of the four would instantly take over the bulk of the FirstLine share. It’s just very logistically difficult for one to dominate immediately.”