Tax credit spurs mortgage profit: MBA

New York /
Sep.September 14, 2010 08:30 AM

Marina Walsh

Independent mortgage bankers nationwide saw profits surge during the second quarter of the year, according to the Mortgage Bankers Association, which reported an average profit of $917 on each loan originated, up from the first quarter, when that figure was down at $606. Meanwhile, firms saw a total average production volume of $196.6 million in the second quarter, compared to $157.8 million during the previous quarter. Marina Walsh, an associate vice president with MBA, said that the first-time homebuyer tax credit likely spurred this upward momentum. “The significant rise in loan origination volume during the second quarter reflects the surge in first-time homebuyers seeking to take advantage of the tax credit before the deadline expired,” Walsh said. But, even with this quarterly rise in activity, the MBA data showed profits significantly below those seen during the same time period a year earlier. “A year before, quarterly production volume averaged $280.9 million,” Walsh said. TRD

 

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