Banks Report Huge Improvement in Mortgage Profitability

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Posted To: MND NewsWire

There was a dramatic turnaround for many mortgage banks in the second quarter as their production profits increased nearly six-fold compared to the previous period. The Mortgage Bankers Association (MBA) said the independent mortgage banks (IMBs) and mortgage subsidiaries of chartered banks responding to their survey said they had an average net gain of $1,675 on each loan they originated, up from a reported gain of $285 per loan in the first quarter of 2019. Including all business lines (both production and servicing), 85 percent of the firms in the study posted pre-tax net financial profits for the quarter. Only 59 percent did so in the first quarter. “Production profits in the second quarter of 2019 were the best MBA has seen since the third quarter of 2016 ($1,773 per loan), as production…(read more)

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