High Financial LeverageA near-2.0 debt-to-equity ratio signals significant leverage, increasing interest burden and refinancing exposure. In a mortgage finance business this amplifies cyclical earnings volatility and reduces financial flexibility, raising long-term credit and liquidity risk.
Severe Revenue Decline & LossesVery large revenue decline and operating losses indicate structural issues in origination, pricing or cost control. Persistent top-line contraction and negative EBIT undermine sustainable margins, constrain reinvestment and threaten the business model unless revenue drivers are restored.
Negative Return On EquityNegative ROE shows the company is not generating returns on shareholder capital, eroding long-term shareholder value. Continued negative ROE limits access to new equity, increases cost of capital and hampers growth or recovery initiatives in the mortgage lending franchise.