Centex financial services earnings down

Centex Corp. reported operating earnings from financial services for 2Q05 were $48 million, a 17% decrease from the same quarter last year. Operating earnings from CTX Mortgage totaled $21 million for the first quarter of fiscal year 2006, 34% lower than 2005 fiscal first quarter, primarily reflecting industry-wide reductions in refinancing volume. Originations from Centex Homes' closings increased 12% while retail originations fell 13%. The return earned on the servicing portfolio fell 16 basis points to 1.36% for the first fiscal quarter of 2006, due to an increase in short-term lending rates and competitive industry pricing.