Chart of the Week: Q1 2026 IMB Total Loan Production Expense by Region

Source: MBA’s Quarterly Mortgage Bankers Performance Report 

Independent mortgage banks (IMBs) and mortgage subsidiaries of chartered banks reported a pre-tax net production profit of 16 basis points (or $727 per originated loan) in the first quarter of 2026, according to the Mortgage Bankers Association’s (MBA) newly released Quarterly Mortgage Bankers Performance Report.  Average pre-tax production profits remained flat compared to the fourth quarter of 2025.

For this Chart of the Week, we display the average total loan production expense – commissions, compensation, occupancy, equipment, corporate allocations, and other production expenses across geographic regions. The U.S. average for total loan production expenses was $11,988 per loan, compared with $11,102 per loan in the fourth quarter of 2025. This represents a $800 per loan difference across all states compared to the fourth quarter of last year. In Q1 2026, California and the Northeast regions had the highest per-loan production expenses at $12,864 and $12,791, respectively. 

While many factors contribute to higher or lower production expenses across geographic areas, average loan balances certainly play a role, especially since commissions are often determined by loan amount. California and the Northeast not only had the highest expenses, but the highest average loan balances at $464,055 and $422,574, respectively. The Midwest reported the lowest production expense and the lowest loan balance at $319,875. The West has average loan balances of $390,078 and has above-average production expenses. Texas was the only geographic area with lower balances ($368,654) than another geographic area (the South at $384,828), but with higher costs.

– Jenny Masoud (jmasoud@mba.org); Marina Walsh, CMB (mwalsh@mba.org)