Low Volume and Competition Hurt Q4 Mortgage Profits

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Posted To: MND NewsWire

The balance sheet turned red again for mortgage lenders who reported financial data for the fourth quarter to the Mortgage Bankers Association (MBS). On average the independent mortgage banks (IMBs) and mortgage subsidiaries of chartered banks surveyed for MBA’s Quarterly Mortgage Bankers Performance Report reported a net loss of $200 per loan, down from a reported gain of $480 per loan in the third quarter of 2018. It was the second quarterly loss in the last 12 months and only the third since MBA began collecting the data in 2008. Marina Walsh, MBA’s Vice President of Industry Analysis said, “Independent mortgage bankers continued to struggle in this very competitive mortgage market environment , with the average pre-tax net production income per loan reaching its lowest level since the inception…(read more)

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