MBA Posts Loss for Fiscal Year
The Mortgage Bankers Association reported a net loss of $16.4 million for its fiscal year ending Sept. 30, 2009, almost double the loss of the prior year, according to its tax Form 990.
The form also reveals that MBA's assets exceed its liabilities by almost $12 million, but a spokesman for the trade group stressed that it has "more than enough sufficient liquid assets" to meet its financial obligations.
He noted that a "good portion" of its liabilities are "longer term."
This past spring MBA sold its newly constructed headquarters and office building in Washington, D.C., booking a $30 million loss on the transaction. At the beginning of its 2008 fiscal year, MBA had a positive net worth of roughly $40 million.
Trade groups, as a technical matter, are nonprofits and do not release their annual financial statements until a year after their FY ends.
MBA, upon request, provided a copy of its form 990 to National Mortgage News.
Its spokesman said the group is still completing its books for the fiscal year that just ended and is forecasting that revenue exceeded expenses by about $2.5 million.
It lost money in FY 2008 (calendar year ending Sept. 30, 2009) because of declining revenue on education and trade shows, but also writedowns on its office building. "We did reduce costs, but not enough to offset those losses," he said.
The National Association of Mortgage Brokers could not provide a copy of its Form 990, saying it is still being worked on by its accountants.