Posted To: Pipeline Press

Have you ever wondered why so many lottery winners go broke? If they had any financial sense, they wouldn’t have bought a lottery ticket in the first place. (By the way, aloha from Hawai’i! I’ve been saving my vacation pennies for nearly nine months, and this commentary comes to you from Maui. Yes, the alphabet here has 12 letters, 13 if you include a noise similar to what you’d say to a dog to get it to stop from jumping on the couch.) Lenders have a modicum of financial sense, and the MBA tells us that total production revenue (gross gain-on-sale margin) increased to 475 bp in 3Q up from 429 bps in 2Q (note that this number is most comparable to retail gain-on-sale margins reported by mortgage originators). The average pre-tax production profit margin was 203 bp up…(read more)

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Source: Mortgage News Daily