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News October 07, 18:18 Eastern Time
Mortgage.com sees Q3 $12 mln revs, ends Intuit pact
10-07 0433
Mortgage.com sees Q3 $12 mln revs, ends Intuit pact
PLANTATION, Fla., Oct. 7 (Reuters) - Online mortgage
services provider Mortgage.com Inc. said on Thursday
its third quarter revenues would be around $12 to $12.3
million, up 25 to 28 percent from last year, and it canceled
an agreement with Intuit Inc. .
Under that contract, Mortgage.com had provided the online
financial services provider with technology, supporting
mortgage specialist resources and mortgage banking capabilities
for Intuit's QuickenMortgage web site.
Its exclusive three-year agreement with Intuit concerning
sub-prime loans remained in place, and the company said it did
not expect the contract termination to materially hurt its 1999
revenues. Mortage.com is expected to lose $1.00 a share in the
third quarter, according to tracking service First Call.
"While we thoroughly enjoyed the mutually beneficial
relationship with Intuit during the early stages of our growth,
the termination of the agreement frees us to take advantage of
a number of exciting opportunities with other leading
multi-lender sites that have approached us for partnerships,"
said Seth Werner, Mortgage.com chairman and president said.
The agreement barred the online mortgage services provider
from working with other leading companies in the business, even
as the volume of loan leads from the QuickenMortgage site fell
10 percent from the first to the second quarter this year, and
more than 10 percent in the third quarter.
"Only 8 percent of our third quarter revenue was generated
by the two Intuit agreements combined, and with the marketing
restrictions lifted, we would expect to be building significant
revenue through new customers before the expiration of the
agreement's cancellation period," Werner said.
Under the agreement, loan volume would be phased out over
12 months, during which time Mortgage.com will continue to
provide the complete array of services to the lenders it
represents on the site, GE Capital, Fleet, First Union,
Citicorp and GMAC Mortgage.
For the nine months ended Sept. 30, the company also said
it expects to report revenue of about $35.5-39.8 million which,
up around 58-60 percent over last year's comparable period.
The company's loan production volume for the third quarter
rose about 36 percent over last year's level to about $698
million, it said. Mortgage.com originated 79 percent of its
third-quarter volume from loans tied to the purchase of homes
and 21 percent from the refinancing of prior mortgages.
The company is due to release results on Oct. 29.
((Financial services desk 212-859-1644)) |
