NEW YORK - Hanover Capital Mortgage Holdings Inc. on Tuesday reported a second-quarter net income of $699,000, or 17 cents a share, down 5% from the year-earlier period.
The mortgage real estate investment trust attributed the drop to losses at HanoverTrade.com, an online mortgage bond trading platform it launched this year. The net loss by HanoverTrade.com increased by over 30% to $886,000 from the first quarter, when the unit lost $679,000.
Excluding HanoverTrade.com, the company earned 38 cents a share from its investment portfolio, John Burchett, chief executive officer of Hanover, said in a press statement. "Although HanoverTrade.com will produce losses for the short term, it is rapidly becoming known in the marketplace as the leading Internet whole-loan trading platform," he added.