Magazine article Mortgage Banking

Production Profits Return in 2Q 2014

Magazine article Mortgage Banking

Production Profits Return in 2Q 2014

Article excerpt

The Quarterly Mortgage Bankers Performance Report released on Aug. 26 by the Mortgage Bankers Association (MBA) showed surveyed lenders posted a net gain of $954 per loan they originated in the second quarter. That was up from a reported net loss of $194 per loan in the first quarter.

MBA surveys independent mortgage banks and mortgage subsidiaries of chartered banks to produce its quarterly report. For the second-quarter report, 73 percent of the 349 companies reporting production data were independent mortgage companies. The remaining 27 percent were subsidiaries and other non-depositories.

The report found average production volume in the second quarter was up 38 percent, to $378 million per company. Volume was just $274 million in the first quarter. Volume per company averaged 1,676 loans in the second quarter. That was up from the 1,238 loans in the first quarter of the year.

MBA reported the purchase share of total originations measured by dollar volume increased to 74 percent in the latest report. That was up from 68 percent in the first quarter. The survey respondents showed a higher purchase share than what MBA forecasts for the industry as a whole. That industrywide purchase share was estimated at 59 percent in the second quarter, according to an MBA press release.

The jumbo share of total first-mortgage originations rose to 7 percent in the second quarter for survey respondents. That was the highest jumbo share in the history of the performance report.

There was sizable improvement in total loan production expenses on a per-loan basis in the second quarter, MBA said. …

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