Independent mortgage banks and mortgage subsidiaries of chartered banks reported a net loss of
Other key findings of MBA's Quarterly Mortgage Bankers Performance Report are:
In basis points, the average production loss was 8.31 basis points in the first quarter of 2014, compared to an average net production profit of 8.72 basis points in the fourth quarter of 2013. This marks the sixth consecutive quarter that production income has decreased.
Average production volume was
The purchase share of total originations, by dollar volume, was relatively flat at 68 percent in the first quarter of 2014. For the mortgage industry as a whole, MBA estimates the purchase share at 51 percent in the first quarter of 2014, from 47 percent in the fourth quarter of 2013.
Secondary marketing income increased to 277 basis points in the first quarter, compared to 248 basis points in the fourth quarter of 2013.
Total loan production expenses - commissions, compensation, occupancy, equipment, and other production expenses and corporate allocations - increased to
Personnel expenses averaged
Productivity was 1.7 loans originated per production employee per month in the first quarter, down from 2 loans in the fourth quarter of 2013.
Including all business lines, 54 percent of the firms in the study posted pre-tax net financial profits in the first quarter of 2014, down from 58 percent in fourth quarter of 2013, and 94 percent in the first quarter 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. 75 percent of the 331 companies that reported production data for the first quarter report were independent mortgage companies and the remaining 25 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
[Category: Financial Services]
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