Richey May: Private Mortgage Bankers Saw Production Rise 11% In Q2

Posted by Patrick Barnard on August 14, 2013 No Comments
Categories : Residential Mortgage

Overall production among independent mortgage bankers increased 11% from the first quarter to the second quarter, according to Richey May & Co.'s Second Quarter Trend Report for Independent Mortgage Bankers.

As a result, their net income and profit went up.

The net worth for independent mortgage bankers increased about 20% during the second quarter, according to the report. This is a continuing trend, with capital increasing approximately 34% from the end of 2012.

Despite the increases, commissions have been on the decline. Since their four-month high in the fourth quarter of 2012, when they reached approximately 82 basis points, they dropped to an average of 78 basis points in the second quarter. The four-month average for commissions was about 80 basis points of total production.

The report is based on data from Richey May Select, a next generation peer group benchmarking tool that allows lenders to gauge their businesses against those of their true peers, rather than on the market as a whole.

‘Independent mortgage bankers face different business challenges than the big banks do, particularly when it comes to profitability and fiscal spending,’ says Ken Richey, managing partner of Richey May. ‘There are a lot of otherwise healthy companies that are suffering undetected losses and missed revenue opportunities.’

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