And more news (different version):
News September 7, 16:41 Eastern Time
MORTGAGE.COM TERMINATES INTUIT AGREEMENT; GAINS ABILITY TO SERVICE OTHER LEADING
MORTGAGE SITES THIRD QUARTER REVENUE UP 25-28% Year-to-Year
PLANTATION, Fla., Oct 7, 1999 /PRNewswire via COMTEX/ -- Mortgage.com
(Nasdaq: MDCM) announced it notified Intuit Inc. (Nasdaq: INTU) today
of cancellation of one of its two agreements with Intuit, the
Distribution, Marketing, Facilities and Services Agreement for
conforming loans ("the Agreement") through which Mortgage.com has
provided the technology, supporting mortgage specialist resources and
mortgage banking capabilities for Intuit's QuickenMortgage web site.
Mortgage.com's exclusive three-year agreement with Intuit concerning
sub-prime loans remains in effect.
"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. "The Agreement had specifically barred us from
working with the top companies in this sector, while the volume of loan
leads that the QuickenMortgage site drove to us dropped 10% from the
first quarter to the second quarter of this year and then more than 10%
in the third quarter just ended. Only 8% 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."
Mortgage.com said that it did not expect its 1999 revenue to be
impacted materially by the termination. Under the Agreement, loan
volume will 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 third quarter ended September 30, 1999, Mortgage.com expects to
report revenue of approximately $12.0-12.3 million which represents an
approximately 25-28% increase over last year's comparable period. For
the nine months ended September 30, 1999, the company expects to report
revenue of approximately $35.5-39.8 million which represents an
approximately 58-60% increase over last year's comparable period.
(Comparability note for analysts: Mortgage.com reports warehouse loan
revenues net of warehouse loan expenses. Some online lenders include
gross interest on loans in revenue, with interest expense on those
loans shown under expenses.)
The company's loan production volume for the third quarter increased
approximately 36% over last year's level to approximately $698 million,
compared to an industry-wide drop of 21% in mortgage originations.
Mortgage.com originated 79% of its third quarter volume from loans tied
to the purchase of homes and 21% from the refinancing of prior
mortgages.
In the past two months, Mortgage.com announced agreements with a number
of on-line lenders and loan marketers which it expects to contribute
increasingly to revenue.
The Company plans to release full details of the results of the third
quarter on October 29th and will host a conference call and web cast
that day.
Founded in 1994 and based in Plantation, Florida, Mortgage.com is a
pioneer in online mortgage banking and provides the industry's most
comprehensive mortgage platform of brand companies, private-label
outsourcing and technology services dedicated to reducing the cost of
mortgage origination and funding. The Company provides realtors,
homebuilders and other financial institutions with point-of-sale and
Internet technology, business management, loan processing, and call
center and mortgage funding capabilities.
"Safe Harbor" Statement under the Private Securities Litigation Reform
Act of 1995: Statements in this press release regarding Mortgage.com's
business which are not historical facts are "forward-looking
statements" that involve risks and uncertainties. For a discussion of
such risks and uncertainties, which could cause actual results to
differ from those contained in the forward-looking statements, see
"Risk Factors" in the Company's Annual Report or Form 10-K for the most
recently ended fiscal year.
SOURCE Mortgage.com
(C) 1999 PR Newswire. All rights reserved.
prnewswire.com
CONTACT: Debbie Franklin, Investor Relations Manager of Mortgage.com,
954-452-0000; or William J. Jenks of Broadgate Consultants, Inc.,
212-232-2222, for Mortgage.com
(MDCM INTU)
GEOGRAPHY: Florida
INDUSTRY CODE: FIN
MLM
ADV
SUBJECT CODE: LIC |
