IMB Production Profits Fall to Series Low in 2022
- Average production volume was $2.6 billion (8,371 loans) per company in 2022, down from $4.9 billion (16,590 loans) per company in 2021. On a repeater company basis, average production volume was $2.8 billion (8,848) in 2022, down from $5.0 billion (17,069 loans) in 2021.
- In basis points, the average production loss was 13 basis points in 2022, down from a profit of 82 basis points in 2021. Since the inception of MBA’s Annual Performance Report in 2008, net production income by year has averaged 55 basis points ($1,261 per loan).
- The refinancing share of total originations (by dollar volume) decreased to 20 percent in 2022 from 46 percent in 2021. For the entire mortgage industry, MBA estimates the refinancing share last year decreased to 30 percent from 57 percent in 2021.
- The average loan balance for first mortgages reached a study-high of $323,780 in 2022, up from $298,324 in 2022. This is the largest single-year increase in the history of the report.
- Total production revenues (fee income, net secondary marking income and warehouse spread) were 333 basis points in 2022, down from 382 basis points in 2021. On a per-loan basis, production revenues were $10,322 per loan in 2022, down from $11,003 per loan in 2021.
- Total loan production expenses – commissions, compensation, occupancy, equipment, and other production expenses and corporate allocations – increased to $10,624 per loan in 2022, up from $8,664 in 2021.
- Productivity was 1.5 loans originated per production employee per month in 2022, down from 2.5 in 2021. Production employees include sales, fulfillment, and production support functions.
- Net servicing financial income, which includes net servicing operational income, as well as mortgage servicing right (MSR) amortization and gains and losses on MSR valuations, was at a gain of $586 per loan in 2022, up from a gain of $261 per loan in 2021.
- Including all business lines, 53 percent of the firms in the study posted pre-tax net financial profits in 2022, down from 96 percent in 2021.
There are five performance report publications per year: four quarterly reports and one annual report. For media inquiries, contact Falen Taylor at [email protected]. To purchase or subscribe to the publications, please visit mba.org/performancereport.
*Press release revised as of 4/12/23 to reflect updated language to the 5th paragraph.