Profits Are Up for Independent Mortgage Banks in 2019

According to the Mortgage Bankers Association's newly released Quarterly Mortgage Bankers Performance Report, U.S. independent mortgage banks (IMBs) and mortgage subsidiaries of chartered banks reported a net gain of $285 on each loan they originated in the first quarter of 2019, up from a reported loss of $200 per loan in the fourth quarter of 2018. "Independent mortgage bankers experienced improvements in the first three months of the year. This was a welcoming sign following a very difficult end of 2018, in which profitability reached its lowest level since our survey's inception in 2008," said Marina Walsh, MBA's Vice President of Industry Analysis. "Mortgage application volume picked up strongly towards the end of the first quarter as rates dropped, increasing the pipeline of loans for the second quarter. Given the drop in rates, lenders also enjoyed a boost in secondary marketing gains."