According to the Mortgage Bankers Association’s most recent Quarterly Mortgage Bankers Performance Report, independent mortgage banks and mortgage subsidiaries of banks reported a gain of $2,023 on each loan they originated in the second quarter of 2021, down from a gain of $3,361 per loan in the first quarter of 2021.
Purchase share of total originations, by dollar volume, increased to 57% in the second quarter of 2021, compared to 39% in the first quarter.
The average loan balance for first mortgages increased to a new study high of $297,816 in the second quarter, up from $288,551 in the first quarter.
Overall, net production profits dropped to their lowest level since the first quarter of 2019, but still remain above the historic quarterly average. MBA’s Vice President of Industry Analysis, Marina Walsh, said, “Competition stiffened, production volume declined, and the market began to shift towards more purchase activity and less refinances. The result for mortgage lenders was a combination of lower revenues and higher expenses.”