Mortgage Banks: Don’t Overlook Value in Low-Dollar Loans

The M Report, Oct. 3, 2023–Kyle G. Horst
Conventional wisdom dictates that originating and servicing higher loan balances equals higher profits. However, according to a new white paper released by the Mortgage Bankers Association entitled “How do Mortgage Revenues, Costs and Profitability Vary by Loan Balance? An Analysis Using Benchmarking Data” the relationship between loan balances and profitability is more nuanced than one may believe and constantly changes courses over the ebb and flow of market cycles.
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