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Independent mortgage banks and mortgage subsidiaries of chartered banks posted a net gain of $223 on each loan they originated in the first quarter, according to the latest Quarterly Mortgage Bankers Performance Report from the Mortgage Bankers Association (MBA).

That’s a massive quarterly plunge, down from $1,099 per loan in fourth-quarter 2021.

A variety of factors led to the big decline, including lower production revenue. Average pretax net production income during the first quarter sank to only 5 basis points (bps), down from 38 bps in the prior quarter and down 124 bps from first-quarter 2021. The Q1 2022 average pretax net production income is at its lowest level since fourth-quarter 2018, and far less than the quarterly average of 55 bps from Q3 2008 to Q1 2022.