Industry News

E-Loan reports $1 million loss

Refinance revenue sinks; home equity volume increases
Published on Apr 29, 2004

Consumer direct lender E-Loan today reported a net loss of $1.1 million, or 2 cents a share in the first quarter, due to the shrinking refinance loan volume. The company's first-quarter revenue was $32 million, down from $36 million a year ago. Home equity revenue was a record $10.7 million, up 146 percent from the first quarter 2003. Diversified mortgage revenue, comprised of purchase and non-prime mortgage, was $8.2 million, up 5 percent from the same quarter last year. Refinance mortgages accounted for 25 percent of revenue at $7.9 million, up from $6.7 million the previous quarter and down from $18 million a year ago. Home equity loans accounted for 29 percent of revenue at $9.3 million, up from $6.6 million the previous quarter and $3.9 million a year ago. E-Loan provides mortgage, auto, credit card, home equity and business loans exclusively over the Internet. Revenues are primarily from the gain on sale of first mortgage, home equity and auto loans, as well as interest earned. ...

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