IMB profit rises to $727 per loan in Q1 2026 even as costs jump

"Most mortgage bankers were profitable in the first three months of 2026 despite higher per-loan expenses, as servicing income lifted their financials, according to the Mortgage Bankers Association (MBA)'s Quarterly Mortgage Bankers Performance Report."

"Independent mortgage banks (IMBs) and mortgage subsidiaries of chartered banks posted a pretax net production profit of $727 per loan in the first quarter of 2026, up from $674 per loan in the fourth quarter of 2025. Average production profits in the first quarter of 2026 remained relatively flat at 16 basis points, despite a decline in production volume from the previous quarter."

"Production costs grew by close to $800 per loan, but increases in production revenues offset these additional costs. The report covers 324 companies, 81% of which are independent mortgage companies, while 19% are bank subsidiaries and other nondepository institutions."

"Combining both production and servicing business lines, 76% of lenders were profitable in the first quarter, up from 68% in Q4 2025. Still, disparities between the top and bottom performers remain wide. Servicing net financial income (not annualized) improved to $77 per loan serviced in Q1 2026, up from $13 per loan in the prior quarter."

Independent mortgage banks and mortgage subsidiaries of chartered banks reported pretax net production profit of $727 per loan in Q1 2026, compared with $674 per loan in Q4 2025. Average production profits stayed relatively flat at 16 basis points even as production volume declined. Production costs increased by nearly $800 per loan, while production revenues rose enough to offset the added costs. Servicing performance supported overall results as markdowns on mortgage servicing rights slowed. Combining production and servicing, 76% of lenders were profitable in Q1 2026, up from 68% in Q4 2025. Servicing net financial income improved to $77 per loan serviced, and servicing operating income rose to $93 per loan serviced. Average production volume per company fell to $621 million by dollar volume and to 1,729 loans by loan count.

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