Earnings Jump for H&R Block Mortgage Ops

H&R Block Inc., Kansas City, Mo., has reported that its mortgage operations recorded pretax earnings of $339.4 million for fiscal year 2002 (ended April 30), up 146% from $138.0 million the year before. The mortgage operations, primarily Option One Mortgage Corp. and H&R Block Mortgage Corp., registered a $106 million pretax write-up of interests in residuals through other comprehensive income in the fourth quarter. The write-up reflects stronger-than-expected cash flows from retained residual interests from past securitizations, the company said. Option One and H&R Block Mortgage originated $11.5 billion in loans in fiscal 2002, an increase of 75.5% from $6.5 billion the previous year. Option One's servicing portfolio ended the year at $23.8 billion, up 30.6% for the year.