Independent mortgage banks and mortgage subsidiaries of chartered banks made an average profit of
"Full-year 2013 net production profits were respectable," said
Among the other key findings of MBA's Annual Mortgage Bankers Performance Report are:
In basis points, the average production profit (net production income) was 61 basis points in 2013, compared to 108 basis points in 2012. In the first half of 2013, net production income averaged 80 basis points, then dropped to 27 basis points in the second half of 2013.
Total loan production expenses - commissions, compensation, occupancy, equipment, and other production expenses and corporate allocations - increased to
Personnel expenses averaged
The "net cost to originate" was
Productivity was 2.6 loans originated per production employee per month in 2013, down from 3.7 in 2012.
Secondary marketing income declined slightly to 254 basis points in 2013, from 260 basis points in 2012.
Average production volume was
The purchase share of total originations, by dollar volume, increased to 57 percent in 2013, up from 44 percent in 2012. For the mortgage industry as a whole, MBA estimates the purchase share at 37 percent in 2013, up from 29 percent in 2012.
For those companies in mortgage servicing, net servicing income per loan increased to
Including all business lines, 91 percent of the firms in the study posted pre-tax net financial profits in 2013, down from 97 percent in 2012. In the first half of 2013, 95 percent of reporting firms posted pre-tax financial profits, compared to 69 percent in the second half of 2013.
MBA's Mortgage Bankers Performance Report series offers a variety of performance measures on the mortgage banking industry and is intended as a financial and operational benchmark for independent mortgage companies, bank subsidiaries and other non-depository institutions. Of the 242 firms that reported production, 73 percent were independent mortgage companies and remaining 27 percent were subsidiaries and other non-depository institutions.
There are five performance report publications per year: four quarterly reports and one annual report. For media inquiries, contact
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