In basis points, the average production profitrn(net production income) was 120 basis points in the third quarter, compared torn107 basis points in the second quarter. Secondary marketing income increased torn271 basis points in the third quarter, compared to 257 basis points in thernsecond quarter.</p

There was only a small increase in total loanrnproduction expenses, from $5,128 in the second quarter to $5,163 in thernthird.  Total production expenses includerncommissions, compensation, occupancy and equipment, and other productionrnexpenses and corporate allocations.  Personnelrnexpenses averaged $3,320 per loan in the third quarter, up from $3,246 per loanrnin the second quarter.</p

The “net cost to originate” was $3,353rnin the third quarter, from $3,224 per loan in the second quarter. The “netrncost to originate” includes all total production operating expenses minusrnall fee income, but excludes secondary marketing gains, capitalized servicing,rnservicing released premiums and warehouse interest spread. </p

Average productionrnvolume was $450 million per company compared to $371 million in the secondrnquarter.  Companies originated an averagernof 2,010 loans, 310 more than the average in the second quarter.  Productivityrnimproved to 3.9 loans originated per production employee per month in the thirdrnquarter, from 3.6 in the second quarter. </p

The refinancing accounted for 57 percent of therndollar volume of total originations in the third quarter, up from 52 percent inrnthe second quarter. For the mortgage industry as whole, MBA estimates thernrefinancing share at 73 percent in the third quarter of 2012, up from 67rnpercent in the second quarter. </p

There were 311 companies</breporting production data for the third quarter 70 percent of which werernindependent mortgage companies. rnNinety-seven percent posted pre-tax net financial profits in the thirdrnquarter of 2012, compared to 95 percent in the second quarter.