Resource Bancshares Mortgage Group Inc., Columbia, S.C., reported a 43% decline in second-quarter earnings.
Net income was $2.5 million, down from $4.4 million in the second quarter of 1994.
"The impact of the recent significant increase in our mortgage loan pipeline and of getting our new retail and wholesale lending divisions operating at profitable levels (is) only starting to be realized," said Lee Shelton, vice chairman and managing director. "The wholesale and retail divisions are expected to begin contributing to earnings in the third and fourth quarters."
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Amerin Guaranty Corp., Chicago, a mortgage insurance company, reported a 220% increase in wholesale mortgage insurance commitments during the second quarter.
Commitment volume was $1.59 billion, up from $496 million in the second quarter of 1994.
Lower interest rates and a lender-paid mortgage insurance program contributed to the company's large volume increase, according to Stuart Brafman, president.