Q2 Mortgage Banking Profits Surge, Highest Since Report Began in 2008

Mortgage bankers sawrntheir profits surge during the second quarter of 2012, increasing from $1,654 onrneach loan originated in the first quarter of the year to $2,152.  The information comes from the MortgagernBankers Association’s (MBA) QuarterlyrnMortgage Bankers Performance Report which covers data from 305 independentrnmortgage banks and mortgage subsidiaries of chartered banks.  Ninety-five percent of the firms postedrnpre-tax net financial profits in the second quarter of 2012, compared to 93rnpercent in the first quarter. </p

MBA said that averagernproduction volume was $371 million per company in the second quarter, up fromrn$301 million per company in the first quarter. The average volume by count perrncompany rose to 1,700 loans in the second quarter, from 1,380 in the firstrnquarter.  Productivity improved to 3.6rnloans originated per production employee per month in the second quarter, fromrn3.3 in the first quarter.</p

“With the surge inrnproduction volume in the second quarter, net production profits amongrnindependent mortgage bankers increased, surpassing 100 basis points for the<bfirst time since inception of our report in 2008,” said MBA Associate VicernPresident of Industry Analysis Marina Walsh. “Secondary marketing gains</bimproved by almost 14 basis points over the first quarter, the result ofrnwidening spreads between the primary and secondary markets. With the record volume,rntotal production operating expenses also decreased by $164 per loan over thernfirst quarter."</p