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Independent Mortgage Profits Rise to $575 a Mortgage

by Chicago Agent

Independent mortgage banks reported higher profits in the second quarter.

Profits on independent loans rose from $346 to $575 per mortgage for the second quarter, according to a new report by the Mortgage Bankers Association (MBA).

The MBA’s report, titled the Mortgage Bankers Performance Report, also had positive findings for average production volume, which rose from $164 million in the first quarter to $174 million in the second quarter. Average loan balance, though, was more or less unchanged at $197,039, up from the first quarter’s $196,456.

Personal expenses and operating expenses also change little. Personal expenses fell slightly from $3,640 in the first quarter to $3,561 in the second, and operating expenses dropped to $5,644 from is first quarter total of $5,837.

Marina Walsh, the associate vice president of industry analysis for MBA, said the firms she studied defied industry standards.

“Contrary to overall MBA industry data in which estimated production volume declined, the average firm in our study of independents and subsidiaries experienced volume growth,” Walsh said. “The firms in our study were able to more quickly adjust to a purchase-focused mortgage market environment after a significantly refi-heavy fourth quarter of 2010.”

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