Stonegate Mortgage profit slows in third quarter

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Stonegate Mortgage Corp. on Thursday reported that its third-quarter profit fell 82 percent from a year earlier, mostly on smaller gains on mortgage loans held for sale.

The Indianapolis-based company, which completed its initial public stock offering last month, posted a profit of $1.7 million, or 10 cents per share. That compares with a $9.5 million, or $1 per share, profit in the same quarter of 2012.

Interest rate volatility caused profit margins to contract, the company told investors.

Revenue for Stonegate—which originates, finances and services U.S. home mortgage loans—rose 3 percent, to $32.3 million.

Stonegate, after raising $123.9 million from its IPO, is again on an acquisition drive. This month it signed a deal to buy Crossline Capital Inc., a California lender that also originates, funds and services residential mortgages.

Stonegate also signed a letter of intent to acquire the wholesale lending channel and certain retail assets of Texas-based Nationstar Mortgage Holdings.

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