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Despite Larger Loans and More of Them, Mortgage Profits Dip

Mortgage bankers reported a slight
decrease
in profits during the third quarter of 2014, with gains per loan
decreasing even as volume grew and the size of the loans reached the highest
level since the Mortgage Bankers Association (MBA) started keeping track.

MBA said that independent mortgage banks
and mortgage subsidiaries of chartered banks responding to its survey reported
a net gain of $897 on each loan originated during the quarter.  This was down from the $954 per loan reported
in the second quarter.  MBA said a
decrease in secondary market income offset the benefits derived from higher production
volume and bigger loans.

 

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