The J.G. Wentworth Co. in the third quarter was able to reduce its net loss by increasing earnings from its mortgage lending and structured settlement divisions.
The struggling consumer finance company, which late last week entered
Home lending generated loan lock volume of $1.9 billion and closed loan volume of $1.1 billion during the third quarter, and the company's mortgage servicing rights portfolio had a fair value of $50 million at quarter-end.
A year ago, home lending generated mortgage lock volume of $1.6 billion and closed loan volume of $1 billion, and the company's MSR portfolio had a fair value of $32.6 million at quarter-end.
In the second quarter, the company generated loan $1.6 billion in lock volume and $859.9 million in closed loan volume, and the company's MSR portfolio had a fair value of $46.8 million at quarter-end.
Gains in the home lending unit were partly offset by an increase in its operating expenses. J.G. Wentworth Home Lending recorded a $2.6 million increase in advertising expense during the quarter as part of its direct-to-consumer growth plan.
Home lending on a net basis contributed an additional $1.2 million in revenue to the company compared to the third quarter a year ago.
Structured settlements contributed an additional $38.8 million to the company's results from unrealized gains or losses on its securitized finance receivables, debt and derivatives.
The company's total consolidated revenue was $118.7 million in the third quarter, an increase of $49.9 million from $68.8 million a year ago and $101.4 million during the second quarter.
