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Security National Financial Corp. Message Board

  • dalton880 dalton880 Apr 19, 2013 10:55 AM Flag

    SNFCA- will mortgage earnings trend continue ?

    With Wells Fargo and BAC coming out with their Mar qtr reports saying that mortgage banking revenues are decreasing, SNFCA needs to prove that their recent stellar performance has not come to an end. I mean SNFCA has bucked the trend for the Dec qtr vs the Sept qtr, with higher revenues and earnings from their mortgage division vs the larger banks, but the Mar qtr report is super important. Personally I think the stock is way oversold, as the recent selloff assumes earnings will go down from around $.40/qtr to $.20/qtr or less by the end of the year.

    What is most important for investors to note is that SNFCA earnings from mortgage originations are 57% from new home purchases and only 43% refinancings, while Bank of America said 91% of their originations was from refis, and I assume Wells Fargo was also far greater from refis vs new purchases. The reason this is so important is, it highlights that SNFCA is more of a housing comeback play, and not just a refi boom play. Also SNFCA is super small compared to the larger banks, and has much room to grow their mortgage division, and take market share.

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