Independent mortgage banks and mortgage subsidiaries of chartered banks made an average profit of $2,152 on each loan they originated in the second quarter of this year, up from $1,654 per loan in the first quarter, according to new data released by the Mortgage Bankers Association (MBA).
‘Secondary marketing gains improved by almost 14 basis points (bps) over the first quarter, the result of widening spreads between the primary and secondary markets,’ says Marina Walsh, the MBA's associate vice president of industry analysis. ‘With the record volume, total production operating expenses also decreased by $164 per loan over the first quarter.’
The MBA reports that the average production profit was 107 bps in the second quarter, compared to 82 bps in the first quarter, while average production volume was $371 million per company in the second quarter, up from $301 million per company in the first quarter. The average volume by count per company rose to 1,700 loans in the second quarter, from 1,380 in the first quarter.
The purchase share of total originations, by dollar volume, was 48% in the second quarter, up from 42% in the first quarter. For the mortgage industry as whole, the MBA estimates the purchase share at 26% in the second quarter, slightly up from 25% in the first quarter. Secondary marketing income increased to 257 bps in the second quarter, compared to 243 bps in the first quarter.