PulteGroup, Inc.’s PHM subsidiary, Pulte Mortgage has inked a deal with Paymentus to make mortgage payments in a consistent, user-friendly manner. The deal will enable PulteGroup homebuyers to easily finance their new home, that too at a faster rate, from any size device, be it computer, tablet or smartphone.
Paymentus is one of the industry’s leading customer engagement and mortgage payment platforms that allow customers to provide a unified customer bill-pay experience. Notably, the Paymentus platform is a mobile-optimized self-service portal that securely saves payment information, offering an easy and convenient way to submit future mortgage payments electronically.
Moreover, this technological advancement includes a loan status dashboard, automated asset verifications and hybrid e-closings. Additionally, it will bring simplicity and transparency to customers paying their mortgage online.
Technology Enhancement Bodes Well
Pulte Mortgage has been an innovator in home financing. It keeps on advancing technology to improve customer experience. The company is focused on digitizing the entire lending experience, from application to close. The recent move provides a fully integrated suite of technology solutions to customers as well as PulteGroup, and will simplify monthly mortgage payments.
During the first nine months of 2019, Mortgage revenues — which contributed 72.2% to total Financial Services revenues — grew 7% year over year. The upside was mainly attributable to declining mortgage/interest rates. Mortgage capture rate also grew to 81.6%, reflecting an increase from 76% in the year-ago period. Notably, the partnership will undoubtedly help it gain customer engagement, digital adoption and operational metrics going forward.
Shares of PulteGroup, a Zacks Rank #1 (Strong Buy) company, have outperformed its industry in the past six months. The trend is expected to continue, courtesy of the company’s impressive third-quarter results. Earnings and revenues topped analysts’ expectations by 9.8% and 4.1%, respectively. Higher demand owing to favorable housing dynamics backed by lower interest rates and improved affordability had a positive impact on PulteGroup’s performance.
Estimates for 2019 and 2020 earnings have moved 3.5% and 2.4% upward, respectively, in the past 30 days, reflecting analysts’ optimism surrounding the company’s prospects.
Other Key Picks
Other top-ranked stocks in the same space include Meritage Homes Corporation MTH, M/I Homes, Inc. MHO and KB Home KBH, each sporting a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Meritage Homes has a three-five year expected EPS growth rate of 8.5%.
M/I Homes’ earnings for the current year are expected to grow 31.9%.
KB Home has a three-five year expected earnings per share growth rate of 9.3%.
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