Independent Mortgage Bank Volumes Decrease, Production Profits Drop in 4th Quarter 2016
Mortgage Bankers Association press release ------- Independent mortgage banks and mortgage subsidiaries of chartered banks reported a net gain of $575 on each loan they originated in the fourth quarter of 2016, down from a reported gain of $1,773 per loan in the third quarter of 2016, the Mortgage Bankers Association (MBA) reported today in its Quarterly Mortgage Bankers Performance Report. "Rapid increases in interest rates in the last two months of 2016 slowed mortgage activity in the fourth quarter, driving a significant decrease in loan production profits," said MBA Vice President of Industry Analysis Marina Walsh. "Mortgage lenders reported a combination of both lower revenues and higher expenses. On the revenue side, secondary marketing income dropped as mortgage lenders wrestled with less favorable pricing and pipeline challenges. At the same time, production expenses per loan rose as fixed costs were spread over fewer loans," To get more in depth information click on the picture below to read the release.