CoreLogic plans to enhance its appraisal management company services and will exit the loan origination software business and default management related services over the next couple of years in a bid to increase profit margins and enhance long-term organic growth trends.

“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,” said Frank Martell, president and chief executive officer of CoreLogic.

[caption id="attachment_8671" align="alignleft" width="264"] Frank Martell[/caption]

Loan origination software and default management related services generated around $40 million in revenue during the first nine months of 2018. But the company will focus on business units that are scalable, and in which CoreLogic has a leadership position in the market.

During 2019, CoreLogic plans to accelerate its multi-year program designed to transform its AMC operations through the greater use of data-driven analytics, automation of workflows and enhanced use of dedicated staff appraisers. This acceleration is expected to improve client satisfaction, reduce appraiser turn times, enhance quality and increase productivity. The decision to exit these businesses is expected to result in lower revenue in 2019, but it will enhance overall profit margins and improve underlying organic growth trends in 2020 and beyond.

AMC revenues estimated to be impacted from this acceleration were approximately $65 million during the first nine months of 2018. According to the company, the long-term revenue growth rate trend and contribute to the achievement of 30 percent adjusted EBITDA margins in 2020. Corelogic might incur cash and non-cash charges associated with these business decisions.