The Mortgage Bankers Association posted net ‘earnings’ of $2.7 million for its latest fiscal year but still has negative net worth of almost $19 million, according to its newly released Form 990 tax form.
The trade group took in $34.4 million of revenue in FY 2011 and incurred $31.7 million of expenses. The year prior it had $28.7 million of expenses. (As a practical matter, trade groups are non-profits.)
In particular, its salary expense rose almost 30% to just shy of $19 million. The salary and benefits paid to its current president and CEO David Stevens is not listed because he was not at the trade group at the beginning of the fiscal year.
Its president at the time, John Courson, had a base salary of $666,291.
Stevens joined MBA in May 2011 from the Federal Housing Administration where he served as federal housing commissioner. (In the spring of this year
The trade group’s negative net worth can be traced to its ill-fated decision to build and finance a
In early 2010 MBA sold the property at a $34 million loss to the CoStar Group. Within a year CoStar flipped the property for $101 million.
In 2007 MBA signed a deal to construct the building for $75 million. Its banker was PNC Financial Services.
For the fiscal year ending 2011 MBA had listed assets of $17.7 million and liabilities of $35.7 million. A year earlier it had liabilities of $31.2 million.
A spokesman for the trade group said its negative net worth position is tied to the office building investment.
