The average mortgage originator boosted production by 12 percent, according to a mortgage banking report. Meanwhile, their employers managed to increase staff.
Mortgage bankers originated 1,090 loans for $237 million on average during the third quarter, the Mortgage Bankers Association reported Tuesday in its Quarterly Mortgage Bankers Performance Report.
The trade group said average fundings were lower in the second quarter at 982 loans for $197 million. In the third-quarter 2009, production averaged 962 loans for $190 million.
Third-quarter findings reflect data submitted by 307 independent mortgage companies, bank subsidiaries and other non-depository institutions. More than 70 percent of the reporting firms were independent mortgage companies.
Lenders closed 3.50 loans per production employee, better than 3.17 loans in the prior period. Productivity eased, however, from 3.53 loans per employee in the third-quarter 2009.
The average loan officer pushed business up to 10.4 loans in the third quarter from 9.3 loans in the previous period.
Average headcount was 156, up from the second quarter’s 151 and 132 a year ago. The Sept. 30 figure included 79 sales employees, 44 fulfillment employees and 32 other production-related employees.
Just over two-thirds of applications turned into closed loans during the latest period, worse than 72 percent in the prior three months.
Net production income jumped to 71.46 basis points from the second quarter’ 49.11 BPS and was also better than 50.03 BPS a year earlier.
Net loan production operating income was a negative 135.47 BPS, improving from a negative 137.15 BPS in the second quarter. Also better was secondary marketing income, which moved to 203.06 BPS from 181.97 BPS.
But interest income — the difference between warehouse income and warehouse expenses — fell to 3.87 BPS from the previous quarter’s 4.29 BPS.
Lenders held loans on their warehouse lines for an average of 16 days, the same as the prior period.
MBA executive Marina Walsh noted that while higher originations historically translate into a lower cost to originate per loan, stricter lending standards prevented a decline in costs during the latest period.
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