IMBs and mortgage subsidiaries faced the largest loss per loan in 15 years, with an average of $1,056 lost per loan in 2023, compared to $301 lost in 2022.
Average net production loss for mortgage lenders increased to 37 basis points in 2023 from 13 basis points in 2022, driven by rising costs to a high of $11,258 per loan.
Market challenges included higher mortgage rates, low housing inventory, and weaker affordability, leading to reduced volume and companies focusing on cost containment and staff reduction.
Some companies survived by tapping into cash reserves from previous years and leveraging strong mortgage servicing cash flows despite lower net financial income due to 2022 valuation adjustments.
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