The average profit on each loan originated in 2015 by independent mortgage banks and mortgage subsidiaries of chartered banks jumped by more than $400 from the previous year, according to the Mortgage Bankers Association's Annual Mortgage Bankers Performance Report.
The average profit on each loan in 2015 was $1,189 versus just $747 per loan a year earlier. Net production profits remained at 52 basis points, despite declines toward the end of the year versus 34 basis points in 2014. For the first half of 2015, net production income was 65 basis points before dropping to 39 basis points in the second half.
Production volume also increased year-over-year, rising to $2.4 billion, or 9,906 loans, on average per company in 2015. A year earlier, the average stood at $1.57 billion, or 6,779 loans, per company.
Overall, 92% of the firms studied reported pretax net financial profits for the year, an increase from 82% in 2014, when including all business lines.
