Magazine article Mortgage Banking

Production Grows While Profits Slip in 3Q

Magazine article Mortgage Banking

Production Grows While Profits Slip in 3Q

Article excerpt

The Mortgage Bankers Association (MBA) reported that participants in its Quarterly Mortgage Bankers Performance Report saw net profit per loan dip to $897 in the third quarter. That was down from $954 per loan in the second quarter.

The average production profit for participants was 42 basis points in the third quarter, compared with 46 basis points in the second quarter of last year.

Average production volume in the third quarter reached $437 million per company, MBA said. That was up 16 percent from $378 million per company in the second quarter.

The study found that the purchase share of total originations was 72 percent by dollar volume in the third quarter. That was down slightly from 74 percent in the second quarter.

Notably, the share of jumbo loan originations rose to 9.4 percent in the third quarter--the highest share since the performance report was launched in 2008. The average loan balance for first mortgages also reached a study high of $231,914 in the third quarter, up from $225,762 in the preceding quarter. …

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