Lenders Posted Record Profits in Q2; Mortgage Volume Bounced Back Last Week; Rates Fairly Steady

Lenders Posted Record Profits in Q2; Mortgage Volume Bounced Back Last Week; Rates Fairly Steady

While servicing income was down, independent mortgage banks (IMBs) and mortgage subsidiaries of chartered banks had a very profitable second quarter. They reported an average net gain of $4,548 on each loan they originated, up from a reported gain of $1,600 per loan in the first quarter of 2020, according to the Mortgage Bankers Association's (MBA) newly released Quarterly Mortgage Bankers Performance Report. "Fueled by a surge in borrower demand and record-low mortgage rates, mortgage production profits in the second quarter reached the highest level since the inception of MBA's report in 2008," said Marina Walsh, MBA's Vice President of Industry Analysis. "Production volume averaged over $1 billion per company, and there was an ideal combination of higher revenues and lower costs. Revenues