Mortgage Banker Profits Drop More than a Third
The profits of independent mortgage banks and bank mortgage subsidiaries took their third straight tumble in the second quarter of this year. Those profits, however, were still stronger than historic averages. The Mortgage Bankers Association (MBA) said, in its Quarterly Mortgage Bankers Performance Report, that banks had a net gain of $2,023 on each loan they originated during the period, down from a reported gain of $3,361 in Q1. (All comparisons that follow are to the first quarter of 2021 unless otherwise notes.) The average pre-tax production profit was 73 basis points (bps), down from 124 bps in the previous quarter and 167 bps lower on a year-over-year basis. This is still higher, however, than the average in records that extend from the third quarter of 2008 to the most recent quarter, 55 bps.
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