Knight Capital Group, parent company to the largest reverse mortgage lender Urban Financial Group, reported earnings of $.04 per diluted share, or $3.3 million citing losses due to the initial public offering that took place during the quarter. Net income reflected pre-tax trading losses of $35.4 million, or $.23 per diluted share, due to the IPO investment, the company said Wednesday.
Urban reported reverse mortgage gains in its continuing operations, noting growth in volume with an average of $140 million in origination per month during the quarter.
“In reverse mortgages, urban increased both origination and securitization year-over-year,” said company executives on Knight’s earnings call Wednesday. “During the second quarter, urban issued $427 million in HMBS is, which represented 20% of all industry issuance.”
The company continues to rise the reverse mortgage ranks in the wake of the exits of MetLife and Wells Fargo from the business. Based on volume, Urban is positioned to become the No. 1 largest reverse mortgage lender in terms of endorsement volume, according to the latest data from Reverse Market Insight.
Knight executives said the company is weighing legal action regarding the Facebook losses.
Written by Elizabeth Ecker
