The Smart Team of NOVA® Home Loans

Mortgage Banking Profits Increased in 2016

Posted To: MND NewsWire

Despite a terrible fourth quarter, independent mortgage banks and mortgage subsidiaries of chartered banks managed to have a slightly more profitable year in 2016 than they did in 2015. The Mortgage Bankers Association’s (MBA’s) Annual Mortgage Bankers Performance Report said those banks made an average profit of $1,346 on every loan they originated last year, compared to $1,189 per loan in 2015. MBA’s report for the final quarter of the year showed profits at $575 per loan, only one-third the profit level of the previous quarter. MBA said 94 percent of the firms which reported data said they posted overall pre-tax net profits during 2016. Ninety-two percent reported those profits in 2015. The average production profit expressed in basis points (bps), was 58 bps compared to 52 bps the previous…(read more)

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Source: Mortgage News Daily

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