"Total production expenses increased to $11,094 per loan in 2025, up from $11,076 in 2024, even as total production revenues rose to $11,879 per loan."
"Despite the increase in volume, per-loan production costs were slightly higher than in 2024, as rising wage growth and increased third-party charges negatively impacted origination costs."
"Including both production and servicing, 78% of firms in the study posted pretax net profits in 2025, up from 68% in 2024 and 36% in 2023."
"Net servicing financial income fell to $89 per loan in 2025, less than one-third of the $301 per-loan figure in 2024, yet remained crucial for many lenders."
In 2025, profitability increased alongside higher origination volumes and larger average loan sizes, yet production expenses also rose. Total production expenses reached $11,094 per loan, while revenues increased to $11,879 per loan. Despite higher volumes, per-loan costs were slightly elevated due to wage growth and third-party charges. A significant 78% of firms reported pretax net profits, largely due to servicing income, which fell to $89 per loan. Average production volume rose to $2.5 billion per company, indicating a trend of increasing loan balances and volumes.
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