PulteGroup, Inc.’s PHM wholly-owned subsidiary and mortgage financing unit, Pulte Mortgage teamed up with Finicity to provide faster, simpler and more secure home financing services to its borrowers.
This Atlanta, GA-based company will leverage Finicity’s new instant asset verification technology in order to step up the asset verification process, while reducing the time and complexity associated with securing a mortgage. With the use of this technology, borrowers can easily upload documents through their mobile, e-sign key regulatory disclosures with the swipe of a finger and remain up-to-date on their loan’s progress. Also, borrowers can have easy access to up to 24 months of bank, brokerage and 401k data that will reduce the initiation time by more than a week.
Finicity is one of the leading providers of real-time financial data access and insights. The partnership will allow PulteGroup to meet the need for ever-increasing volumes of mortgages that increase burden on both borrowers and lenders.
Financial Services revenues in 2018 increased 7% year over year, primarily backed by higher loan origination, title and insurance brokerage volume, courtesy of greater volumes in the Homebuilding segment. Higher average loan size, driven by higher average selling prices in the Homebuilding segment, also added to the positives.
Notably, since the beginning of 2019, mortgage rates have declined 9.5%, per the mortgage-finance company Freddie Mac’s report. Nonetheless, mortgage applications for new home purchases are improving gradually as homebuilding fundamentals are strengthening.
Notably, shares of PulteGroup have outperformed its industry and the S&P 500 composite in the past six months. The stock has gained 26.3% in the said period, comparing favorably with its industry and the S&P 500’s growth of 18.3% and 3.8%, respectively.
Zacks Rank & Key Picks
PulteGroup currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the Zacks Construction sector include Apergy Corp. APY, Quanta Services, Inc. PWR and AECOM ACM. While Apergy and Quanta Services sport a Zacks Rank #1 (Strong Buy), AECOM carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Apergy, Quanta Services, AECOM’s earnings for the current year are expected to increase 2.1%, 25.3% and 2.6%, respectively.
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