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Servicing Revenues Down

While independent mortgage servicers have grown their servicing portfolios, revenues as a percentage of loans serviced were lower.

The average independent mortgage firm serviced 54,673 loans for $8.762 billion as of March 31, according to the Quarterly Mortgage Bankers Performance Report Q4 2012 from the Mortgage Bankers Association.

Servicing portfolios jumped from an average of 35,919 loans for $5.785 billion at the end of the fourth quarter and 30,291 loans for $4.388 billion at the same point last year.

MBA, which charges $650 for the 73-page report on a subscription basis for MBA members and $1,100 for non-members, based its findings on a survey of 203 mortgage servicers.

Using data only from companies that participated in both the current and previous surveys, average servicing portfolios grew to 34,599 loans for $5.815 billion from the fourth quarter’s 32,782 mortgages serviced for $5.490 billion.

Average loans serviced per full-time employee were 1,023 in the first quarter, off from 1,076 in the fourth quarter.

However, on a same-store basis, average loans serviced per employee increased to 1,113 from 1,076.

The year-earlier figure was 1,023 loans serviced per employee.

Direct servicing net income worked out to a little more than 14 BPS, up from a little less than 14 BPS three months earlier. The figure was 17 BPS in the first-quarter 2012.

However, the net fell to 7 BPS for companies with portfolios of less than 2,500 mortgages and jumped past 20 BPS for companies with more than 50,000 home loans in their servicing portfolios.

Banks and thrifts earned 12 BPS on loans serviced, while independent servicers earned 14 BPS.

Servicers averaged 28 BPS in total direct servicing revenues, slipping from 29 BPS three months earlier and 32 BPS a year earlier.

Revenues fell to 22 BPS for companies that serviced fewer than 2,500 loans and jumped to 34 BPS for companies with portfolios in excess of 50,000 loans.

Revenues were 24 BPS at financial institutions and 26 BPS at non-banks.

Total direct expenses were 13 BPS, improving from 15 BPS in the previous quarter and 14 BPS in the same quarter during the previous year.

Direct expenses were just 7 BPS for servicers with portfolios of less than 2,500 mortgages and 20 BPS for services with portfolios that exceeded 50,000 mortgages.

At banks and thrifts, direct expenses amounted to 12 BPS, while it rose to 14 BPS at non-banks.

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