Mortgage Banks Back in the Black
In the second quarter of 2014, mortgage banks reported an average net gain of nearly $1,000 per loan.
That number is up quite a bit from the previous quarter, when the banks were losing almost $200 for every loan taken out.
“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,” Marina Walsh, MBA’s Vice President of Industry Analysis, told Mortgage News Daily. “Some loan closings may have been pushed into the second quarter, resulting in an increase in profitability as per-loan production costs declined.”
Image via flickr/401(k) 2013