MBA Chart of the Week: IMB Production Profit & Volume

Source: MBA Quarterly Mortgage Bankers Performance Report www.mba.org/performancereport.    

Independent mortgage banks and mortgage subsidiaries of chartered banks reported average pre-tax production losses of 8 basis points (a loss of $118 on each loan they originated) in the first quarter, down from 9 basis points ($237 per loan) in the fourth quarter, according to the MBA Quarterly Mortgage Bankers Performance Report.  

The continued drop in overall production volume in the first quarter resulted in the highest per-loan production expenses reported since inception of the report in third quarter 2008. Mortgage bankers saw their total loan production expenses increase to 377 bps ($8,957 per loan) in the first quarter, from 353 bps ($8,475 per loan) in the fourth quarter.   

Higher production revenues mitigated a portion of the cost increase. Total production revenue increased to 370 basis points ($8,840 per loan) in the first quarter, from 362 bps ($8,712 per loan) in the fourth quarter.   

(Marina Walsh is vice president of industry benchmarking and research with MBA; she can be reached at mwalsh@mba.org. Jenny Masoud is associate director of analytics with MBA; she can be reached at jmasoud@mba.org.)