In Q4 2024, 82% of 338 reporting companies were independent mortgage firms, with 61% achieving pre-tax profits, a drop from Q3's 71%. Production losses returned for the ninth consecutive quarter but were milder than losses in previous years. Despite fairly stable revenues, larger lenders derived advantages from economies of scale as average production costs rose. Notably, the average pre-tax loss decreased to 4 basis points as opposed to the previous profit of 18 basis points, illustrating ongoing challenges in the mortgage sector amidst fluctuating performance metrics.
Of the 338 companies that reported, 82% were independent mortgage companies, and 61% posted pre-tax profits in Q4 2024, down from 71% in Q3.
Production losses resumed in Q4 2024, marking the ninth quarter of such losses in three years, but were significantly smaller than those in 2022 and 2023.
Despite flat revenues and volume, lenders with larger volumes benefited from economies of scale, while average production expenses increased across all lenders.
The average pre-tax production loss was 4 basis points in Q4 2024, a decrease from the profit of 18 basis points in Q3 2024.
#mortgage-industry #financial-performance #production-losses #2024-q4-report #independent-mortgage-companies
Collection
[
|
...
]