The Real Deal Miami

Mortgage bankers made profits on loans in 2008

August 17, 2009 12:55PM

Mortgage bankers made a profit of $184 per loan on every loan originated in the second half of 2008, according to the Mortgage Bankers Association annual performance report released today. The profit is higher than in 2007 and 2006, which saw losses on a per-loan basis. The average firm saw a pre-tax net income of $700,000 for the whole year, a dramatic drop from $900,000 in 2007 and $6.4 million in 2006. The government share of originations rose to 45 percent in 2008 from less than 10 percent the previous year, according to the report. Loan origination and ancillary fees grew, compensating for increases in operating expenses. TRD