Mortgage companies lost an average of $560 on every loan they originated last year, compared with the $50 per loan they lost in 2006, continuing a downward trend that began in 2004, according to the Mortgage Bankers Association's annual cost study. While loan origination and ancillary fees grew on a per-loan basis, they did not keep pace with increases in production operating expenses, which grew 7 percent to $3,663 per loan, the study found. MBA's 2008 Cost Study is based on 2007 income and expenses associated with the origination and servicing of one- to four-unit residential mortgage loans by mortgage banking companies. The study is based on a sample of 180 mortgage banking companies who originate and service loans. Study highlights include: Overall, the average firm in the Cost Study sample posted pre-tax net financial income of $0.9 million in 2007, compared with $6.4 million in 2006. On a per-loan basis, the "net cost to originate" was $2,655 in 2007, compare...
by Inman | on Feb 14, 2017
by Ingrid Burke | 2 days
by Teke Wiggin | on Feb 15, 2017
by Gill South | 2 days
by Bernice Ross | 3 days