Posted To: MND NewsWire

Lower interest rates translated to higher volume in the third quarter of the year, giving mortgage companies their highest profits in seven years. The Mortgage Bankers Association’s (MBA’s) Mortgage Bankers Performance Report says that independent mortgage banks and mortgage subsidiaries of chartered banks reported a net gain of $1,924 on each loan they originated in the third quarter of 2019, up from a reported gain of $1,675 per loan in the second quarter. The average pre-tax production profit was 74 basis points (bps) in the third quarter, up from an average of 64 bps in the second quarter of this year. Ninety-one percent of the firms responding to MBA’s survey posted pre-tax net financial profits in the third quarter, up from 85 percent in the prior period. “A surge in refinance activity…(read more)

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Source: Mortgage News Daily