Morning Roundup (3/23/2022)– Digital Real Estate, Applications, IMB Profits Down

Good Morning! Today is Wednesday, March 23. Russia extended a law banning criticism of the government, and a court sentenced the opposition leader Aleksei Navalny to nine more years in prison. At least one person died last night after a tornado in the New Orleans area damaged homes and knocked out power. The Mortgage Note Reports Digital Real Estate: What Is It And Who Is Interested? Millions of dollars are being spent on digital real estate as investors take their money to the land of the Metaverse and Tyrone Townsend is taking a look at this new virtual opportunity. Applications Down: Mortgage loan application volume plummeted by another 8.1% last week as interest rates rise. IMB Profits Down:IMBs and mortgage…

IMB Profits Dropped In Q4

Independent mortgage banks (IMBs) and mortgage subsidiaries of chartered banks made $1,099 on each originated loan in Q4 2021, dropping from Q3’s $2,594, according to the Mortgage Bankers Association’s (MBA) Quarterly Mortgage Bankers Performance Report. More than three-fourths (76%) of firms analyzed made a net profit in Q4, especially firms with servicing operations. Those benefited from slower prepayments and low delinquencies which boosted their MSR valuations. But it’s a decrease from Q3’s rate of 92%. Plus, if no firms in the study had servicing operations, only 58% would have made a net profit last quarter. “Production margins tightened substantially in the fourth quarter of 2021. After a two-year run of above-average profitability, pre-tax net production income per loan reached its…

IMBs Post Record Numbers In 2020

It was a record year for independent mortgage banks. IMBs and mortgage subsidiaries of chartered banks made an average of $4,202 on each loan they originated in 2020 – up from $1,470 per loan the year before, according to a new report released Tuesday by the Mortgage Bankers Association. The Annual Mortgage Bankers Performance report found: 99 percent of the firms posted overall pre-tax net financial profits in 2020, compared to 92 percent of firms in 2019 and 69 percent of firms in 2018.Average production volume was $4.5 billion (16,198 loans) per company in 2020, up from $2.7 billion (10,411 loans) per company in 2019. The average production profit (net production income) was 157 basis points in 2020, compared to 58…

IMBs Post Another Strong Quarter

Independent mortgage banks and mortgage subsidiaries of charter banks again saw strong business in the fourth quarter of 2020 – but smaller revenues on each loan they handled, according to a new Mortgage Bankers Association released Tuesday. IMBs reported a net gain of $3,737 on each loan they originated in the quarter – down from a $5,535 in the third quarter, the Quarterly Mortgage Bankers Performance Report showed. The report also found: The average pre-tax production profit was 137 basis points in the quarter, down from an average net production profit of 203 bps in the third quarter, but up on a year-over-year basis from 46 basis points in the fourth quarter of 2019.Average production volume was $1.47 billion per…

IMB Mortgage Production Profits Jump In Q2

It was a big quarter for independent mortgage banks and mortgage subsidiaries of chartered banks. IMBs and subsidiaries reported a net gain of $4,548 on each loan they originated in the second quarter – up from a $1,600 per loan in the first quarter of the year, according to a report released by the Mortgage Bankers Association. “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.” The report also found:…

IMBs Report Strong First Quarter

Independent mortgage banks reported strong results on loans in the first quarter of the year even in the face of a reduction in volume as the coronavirus pandemic took hold in March, the Mortgage Bankers Association reported Thursday IMBs and mortgage subsidiaries of charted banks reported a net gain of $1,600 on each loan they originated in the quarter – up from $1,182 per loan in the fourth quarter of 2019, according to MBA’s Quarterly Mortgage Bankers Performance Report. “Mortgage production profits were strong in the first three months of 2020 – despite a decline in production volume from the fourth quarter and March’s severe market volatility sparked by the COVID-19 pandemic,” said Marina Walsh, MBA’s Vice President of Industry…