Preliminary data from an annual mortgage broker study detailed the mean income and expense levels for a variety of mortgage lending channels.
Wholesale Access Mortgage Research & Consulting Inc. released preliminary data from its 2006 Study of the Mortgage Brokerage Business and Industry.
The final report, which will be based on responses from at least 2,000 mortgage brokerage owners about 2006 activity, was sponsored by a number of mortgage industry players including Countrywide Home Loans, Wells Fargo and Ellie Mae and is due out next month.
As a share of loan volume, mortgage brokers earned a mean income of 0.82 percent in addition to 1.03 percent in yield-spread premiums, the report indicated. Correspondents earned 25 basis points, direct lenders earned 230 basis points and retail lenders earned 2.28 percent.
Expenses were 66 BPS for brokers and 21 BPS for correspondents , Wholesale Access reported. For direct originators, expenses were 2.12 percent of volume while retail originators' expense was 2.09 percent.
The biggest chunk of direct expenses for mortgage brokers was sales personnel and management salaries and incentives -- accounting for 17 BPS, the data indicated. For retail lenders, the biggest expense was also sales and management compensation.