Independent Mortgage Banks Had Strong ’19

Independent mortgage banks and mortgage subsidiaries of chartered banks saw their a major year-over-year bump in profit on each loan originated, according to the Mortgage Bakers Assication.

The jump in profit rose to $1,470 on each loan from $367 the prior year.

“2019 was a much improved mortgage market compared to the very challenging environment for the industry in 2018,” said Marina Walsh, MBA’s vice president of industry analysis, said in a press release. “After an unfavorable first quarter, independent mortgage companies saw significant improvement in profitability starting in the second quarter, driven by a jump in refinancing activity from the steady decline in mortgage rates.”

But 2019 is now likely a distant memory due to COVID-19, Walsh noted.

Read the full MBA report here.