The profits of independent mortgage banks
and bank mortgage subsidiaries took their third straight tumble in the second quarter
of this year. Those profits, however, were still stronger than historic
averages. The Mortgage Bankers Association (MBA)
said, in its Quarterly Mortgage Bankers Performance Report, that banks had a net gain of $2,023 on each loan they originated during
the period, down from a reported gain of $3,361 in Q1. (All comparisons that
follow are to the first quarter of 2021 unless otherwise notes.) The average pre-tax production
profit was 73 basis points (bps), down from 124 bps in the previous quarter and
167 bps lower on a year-over-year basis. This is still higher, however, than
the average in records that extend from the third quarter of 2008 to the most
recent quarter, 55 bps.

 

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