Skip navigation

Realty Check

#DIANAOLICK ON TWITTER


Current DateTime: 06:29:14 11 Feb 2012
LinksList Documentid: 23279692
Expiration DateTime: 2/11/2012 6:30:52 AM

Current DateTime: 06:29:14 11 Feb 2012
LinksList Documentid: 35933407
  • The 10 Emptiest US Cities

      It’s no secret that the U.S. housing market has seen better days. So, what are the emptiest major U.S. cities?

  • Most Expensive States

      Your dollar won't get as far in these ten states. Which states are the most expensive to live in?

  • Inspired Homes

      From the Simpsons TV show, to the White House to Snow White, here are homes inspired by others.

MOST SHARED


Current DateTime: 06:29:14 11 Feb 2012
LinksList Documentid: 31330905
Expiration DateTime: 2/11/2012 6:30:45 AM

Current DateTime: 06:29:15 11 Feb 2012
LinksList Documentid: 23452000
Expiration DateTime: 2/11/2012 6:30:40 AM

Current DateTime: 06:29:15 11 Feb 2012
LinksList Documentid: 23452764
Expiration DateTime: 2/11/2012 6:30:24 AM

REALTY CHECK VIDEO

» More

Current DateTime: 06:29:17 11 Feb 2012
LinksList Documentid: 30871294
Expiration DateTime: 2/11/2012 6:30:34 AM

RSS FEED

» Help

Current DateTime: 06:29:18 11 Feb 2012
LinksList Documentid: 30871303

Better Times for Mortgage Banking

Published: Monday, 2 Nov 2009 | 2:48 PM ET
Text Size
By: Diana Olick
CNBC Real Estate Reporter

An interesting report today from the Mortgage Bankers Association shows business may be better than we think for their people.

Independent mortgage bankers and subsidiaries made an average profit of $1,358 on each loan they originated in the second quarter of 2009, according to the Mortgage Bankers Association (MBA). This profit marks an increase from the first quarter of 2009 when profits averaged $1,088 per loan, according to the MBA's most recent Quarterly Mortgage Bankers Performance Report. This report measures the performance of independent mortgage bankers and subsidiaries of banks, thrifts and hedge funds.

The increase was fueled by the continuing refi boom. The increase in production volume made it easier for lenders to spread out their fixed costs over a larger number of loans, and that increased net profits. Also, the MBA notes, purchases picked up "as homebuyers with good credit took advantage of low interest rates." FICO scores of the average borrower rose, and that increased pull-through rates (that's the rate at which a borrower who applies for a loan actually gets the loan). I'm liking the higher caliber borrowers in today's environment.

Now here's the important part:

96 percent of the firms in the study posted pre-tax net financial profits in the first quarter 2009. In the first quarter 2009, 85 percent of the companies posted profits. Only 53 percent of the companies were profitable in the fourth quarter 2008.

Some positive news in an otherwise slow and dreary housing recovery.

Questions?  Comments? 

© 2012 CNBC, Inc. All Rights Reserved


Current DateTime: 09:37:11 10 Feb 2012
LinksList Documentid: 29778428

Current DateTime: 02:33:42 10 Feb 2012
LinksList Documentid: 29779196

Current DateTime: 11:35:14 10 Feb 2012
LinksList Documentid: 29779197

Current DateTime: 02:56:31 10 Feb 2012
LinksList Documentid: 29779199
CNBCCNBC
About CNBC  |  Site Map  |  Video Reprints   |  Advertise  |  Help  |  Contact
Privacy Policy  |     |  Terms of Service  |  Independent Programming Report
  Data is a real-time snapshot  *Data is delayed at least 15 minutes
Global Business and Financial News, Stock Quotes, and Market Data and Analysis

© 2012 CNBC LLC.  All Rights Reserved.
A Division of NBCUniversal
Thomson ReutersThomson Reuters