Mortgage Banking Profits Rise in 2Q: MBA
Mortgage bankers reported a sharp increase in quarterly profits at the end of June, according to data released Tuesday by the Mortgage Bankers Association.
Net gains on originations jumped nearly sixfold, to $954, compared to a loss of $194 in the first quarter.
The swing in profits was driven by higher origination volume, according to Marina Walsh, the group's vice president of industry analysis.
"The gains seen in the second quarter come after first-quarter losses that were likely triggered by a variety of factors including the implementation of new Dodd-Frank regulations and extremely low origination volumes," she said in a news release Tuesday.
"Some loan closings may have been pushed into the second quarter, resulting in an increase in profitability," Walsh said.
Purchase loans accounted for 74% of total originations, up from 68% in the first quarter. Jumbos accounted for 7% of originations — their highest level since the trade group began tracking the quarterly data.
Loan production expenses dipped 14%, to $6,932.