Two major broker lenders have revealed their respective Q4 2015 financial results, and the numbers point to booming broker business in 2015.
First National, the latest publicly traded mortgage lender to release its financial results, revealed an increase in mortgages under administration (MUA).
By the end of 2015, the lender had $93.8 billion in MUA, an increase of 9% from $85.9 billion at December 31, 2014.
Originations, meanwhile, were up 7% year-over-year from $16.2 billion to $17.3 billion in 2015.
“First National’s record results for 2015 reflected the ongoing benefits of non-bank mortgage lending across both residential and commercial markets, generally strong conditions in those markets and our team’s dedication to customer service supported by best in class technology,” Stephen Smith, Chairman and CEO, said. “Compared to the prior year, growth was registered in all key financial metrics including MUA, revenue, income before income taxes, Pre-FMV-EBITDA and net income and this enabled us to distribute more income to shareholders than ever before.”
Earlier this month, Home Trust
– another publicly traded mortgage broker lender – reported its own record breaking year.
“Total loans under administration rose to $25.06 billion, the highest in the Company’s history, driven by its solid core residential business, increases in its Accelerator portfolio, the acquisition of the CFF loans portfolio and increases in commercial mortgages and other lending,” Home Trust said in its quarterly report.
Solid results for publicly traded lenders point to just how busy brokers were last year. Record-low interest rates and – in most markets – enticing housing prices and annual appreciation drew clients to purchase homes.
And with rates expected to remain low throughout the year brokers and, indeed, lenders, will likely experience solid business prospects throughout 2016 as well.