By Ovunc Kutlu
ISTANBUL (AA) - Independent mortgage banks (IMBs) in the US saw a net profit in the second quarter of this year for the first time in two years, according to a report by the Mortgage Bankers Association (MBA).
IMBs and mortgage subsidiaries of chartered banks reported a pre-tax net profit of $693 on each loan they originated in the second quarter of 2024, an increase from the reported loss of $645 per loan in the first quarter of this year, MBA said Tuesday in its Quarterly Mortgage Bankers Performance Report.
"Net production income was positive in the second quarter of 2024 – a welcome sign after eight consecutive quarters of net production losses," said Marina Walsh, MBA’s vice president of Industry Analysis. "With a pickup in quarterly volume, productivity, and closings-to-applications pull-through, production costs dropped by about $1,800 per loan. These developments contributed to better net results, even as production revenues decreased from the previous quarter."
Walsh said almost 80% of mortgage companies posted overall profits, including both production and servicing business lines, adding: "After two of the most challenging years in the mortgage business, many companies are seeing light at the end of the tunnel."