The Smart Team of NOVA® Home Loans

Profits Plummet as Rising Rates Constrict Loan Volume

Posted To: MND NewsWire

The reported net profit per loan reported to the Mortgage Bankers Association (MBA) by independent mortgage banks and mortgage subsidiaries of chartered banks cratered during the fourth quarter of 2016. The MBA said today the average gain on each loan originated during the fourth quarter period fell by two-thirds compared to the third quarter, down from 1,773 to $575. Production volume also fell both on a dollar and a loan count basis. The MBA’s Quarterly Mortgage Bankers Performance Report says the average pre-tax production profit was 24 basis points (bps) in the fourth quarter compared to 74 bps in the third. Since the inception of the Performance Report in the fourth quarter of 2008, net production income has averaged 53 bps. Average production volume was $690 million per company in the…(read more)

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Source: Mortgage News Daily

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