CoreLogic recently reported actions expected to expand overall company profit margins and provide for enhanced long-term organic growth trends by heightening its focus on appraisal management, the company announced in a release.
With regards to its exit of legacy non-core software platforms, consistent with its long-held strategy of focusing on scaled market leadership positions in critical data and workflow solutions, the company intends to exit its loan origination software unit and its remaining legacy default management related platforms over the next 24 months, the release said.
These non-core software platforms generated $40 million in revenue during the first nine months of 2018.
“CoreLogic remains focused on capitalizing on our scale and market leadership and the opportunities presented by our must have workflow solutions in the U.S. mortgage market,” CoreLogic President and CEO Frank Martell said in the release. “The actions we are announcing today should further position the company to achieve its 30 percent margin target and enhanced organic growth rates in 2020.”
In the appraisal management company transformation phase for 2019, CoreLogic plans to accelerate its previously announced multi-year program which is intended to transform its appraisal management company operations through the greater use of data-driven analytics, automation of workflows and enhanced utilization of its dedicated staff appraisers.
This acceleration, according to the release, is expected to improve client satisfaction, reduce appraiser turn times, enhance quality and increase productivity. CoreLogic’s acceleration of its transformation program is expected to initially result in lower revenue in 2019. The transformation is also expected to enhance overall profit margins and improve underlying organic growth trends in 2020 and beyond.
CoreLogic said appraisal management company revenues estimated to be impacted from this acceleration were $65 million during the first nine months of 2018.
The company also believes the actions described above will improve the company’s long-term revenue growth rate trend and contribute to the achievement of 30 percent adjusted EBITDA margins in 2020.