Net Cost to Originate the Average Loan Rises to $5238

By Jann Swanson

Posted To: MND NewsWire

Mortgage profits declined in the fourth quarter of 2014 compared to the previous quarter but soared when compared to the fourth quarter of 2013. Independent mortgage banks and subsidiaries of chartered banks told the Mortgage Bankers Association (MBA) that their average net gain on each loan they originated during the recent period was $744 compared to $150 per loan one year earlier. During the third quarter of 2014 the gain was $897. Average production profit was 32 basis points in the fourth quarter, compared to an average net production profit of 42 bps in the third quarter and an average of 9 bps a year ago. MBA’s Quarterly Mortgage Bankers Performance Report also noted that a year earlier only 58 percent of companies responding to its survey reported overall pre-tax profits during the…(read more)

Via:: Net Cost to Originate the Average Loan Rises to $5238