Industry News

Sagging mortgage market weighs on LendingTree

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IAC/Interactive Corp. today reported growth in first-quarter earnings, but the media conglomerate felt the weight of a slowing housing and mortgage market on its LendingTree unit. Overall, IAC saw a 32 percent growth in net income to $62.1 million over the prior year, while revenues climbed 10 percent to $1.6 billion for the quarter. Diluted earnings per share rose 46 percent to 20 cents a share. Strong growth at Ticketmaster and ServiceMagic was partially offset by a decline in LendingTree revenue, which continues to feel the impact of a lagging mortgage market, the company said Thursday. Revenue at LendingTree fell 12 percent to $100 million from the prior year, while operating income at the unit plunged 99 percent to $100,000. IAC attributed the decline to fewer loans being sold into the secondary market and fewer loans closed at the online lending exchange. "Lenders' narrowing focus on traditional mortgage products in reaction to changes in the mortgage market contributed to lower ...