The mortgage industry reported improved profitability in 2024, with 68% of surveyed firms achieving pretax net profits, up from 36% in 2023. Despite this, smaller lenders with production volumes under $500 million faced ongoing challenges, posting losses for the third consecutive year. Average production volume increased to $2.1 billion, and the average production income saw a turnaround to 10 basis points. The refinance market also improved, with the refinance share for independent mortgage banks rising to 16%, while net servicing income per loan grew, indicating a mixed but generally positive recovery in the sector.
In 2024, 68% of firms in MBA's survey posted pretax net profits, which increased from 36% in 2023, reflecting improved performance in the mortgage market.
The average production income improved to 10 bps in 2024, a significant rebound from the loss of 37 bps recorded in 2023.
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