The average mortgage loan balance increased from $345,761 in the first quarter to $356,993 in the second quarter, according to the Mortgage Bankers Association report.
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The Mortgage Bankers Association reported this week that independent mortgage banks posted their first profit in two years on second-quarter loan originations.
After eight consecutive quarters of net loan losses, IMB reported pretax profits of $693 per loan in the three months ended June 30. Net loss.
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“Production costs per loan decreased by approximately $1,800 as quarter volume, productivity and application closures improved,” Marina Walsh, MBA’s vice president of industry analysis, said in a statement. “While production revenue declined from the prior quarter , but these developments still resulted in better net profits.”
“Nearly 80% of the mortgage companies in the sample reported overall profits, including both manufacturing and service lines of business,” said Walsh. “After two of the most challenging years in the mortgage business, many companies are seeing light at the end of the tunnel.”
Among companies reporting production data for the quarter, 78% reported pre-tax profits on both production and services, up from 59% in the first quarter.
The company reported average production of $492 million across 1,503 loans during the quarter, up from $384 million across 1,193 loans at the beginning of the year.
MBA reported that the average mortgage loan balance increased from $345,761 in the first quarter to $356,993 in the second quarter.
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