Indian summer for Stargate

Stargate is, or perhaps was, bouncing back in the business of servicing mortgages.

An evaluation of the business by Standard & Poor's published at the end of last week shows that as at September 2007 Stargate services more than 6000 mortgage loans worth more than $1 billion.

Part of a network of related companies controlled by the Spencer family (who furnish the chair and chief executive of each of the two chief entities within the Stargate group) the firm has progressively revived its mortgage technology business following the sale of the Interstar mortgage funding business to Challenger in 2004.

S&P - who rated Stargate as above average in the mortgage servicing business - said the firm now had brokers and mortgage managers who have signed up for Stargate's services, with around 60 per cent or so active at any one time. S&P said this was up from 130 customers.

Mortgage applications processed by Stargate have revived from a low of $400 million a year in 2005 to $1 billion last year. Given Stargate's niche, however, new business levels look likely to be lower this year as sources of funding for non-bank lenders dry up.

These days Stargate is also a trade media publisher in the increasingly crowded market to supply mortgage news through the Lending Central website.