E*Trade mortgages top $2 billion milestone

E*Trade mortgages top $2 billion milestone

US pure-play E*Trade Bank has funded more than $2 billion mortgages since acquiring E*Trade Mortgage in February 2001.

The bank is a subsidiary of E*Trade Group. The volume of loans originated by E*Trade Mortgage, and funded by E*Trade Bank, have more than doubled in less than two months. The bank crossed the $1 billion milestone in late May 2001.

E*Trade Bank and E*Trade Mortgage, formerly known as LoansDirect, use an integrated financial services model. This now includes mortgage origination as well as banking, brokerage and wealth management services. The services are provided by the E*Trade Group and its subsidiaries.

Mitchell Caplan is managing director, North America, and chief global banking and wealth management officer of E*Trade Group. He says the launch of E*Trade Mortgage was a big win for the bank. "With the ability to originate and fund applications, we can streamline the mortgage origination process to increase value for our customers and profitability for our shareholders."

E*Trade Mortgage's quarterly volumes have virtually doubled to $1.4 billion for the quarter ending June 30 2001. This compares with $700 million for the first quarter of 2001.

In addition, revenues increased close to 90% quarter on quarter. E*Trade Mortgage generated gross revenues of nearly $25.4 million in Q2 2001 compared to $13.6 million in Q1. This was achieved via origination, loan-related fees and gains on sale of loans.

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