Mortgage Daily Logo
mortgage news from industry experts

Servicers Boost Employee Productivity

Small and mid-sized mortgage servicers have been increasing the number of loans handled per employee. Net income per loan serviced swung from a loss to a profit, and firms are seeing big benefits from economies of scale.

Surveyed firms serviced an average of 30,291 mortgages for $4.388 billion in the first quarter, less than the 34,505 loans serviced for $5.286 billion in the fourth-quarter 2011.

The average portfolio was 36,769 loans for $5.597 billion in the first-quarter 2011.

But the difference between periods narrowed when only considering servicers that were surveyed in both the current and prior quarters, according to the Quarterly Mortgage Bankers Performance Report Q1 2012 from the Mortgage Bankers Association. The average portfolio was 31,849 loans for $4.752 billion in the first quarter compared to 32,150 mortgages for $4.746 billion for the same servicers in the final quarter of last year.

The report is priced at $650 for members of MBA and $1,100 for non-members. It was prepared using data derived from the quarterly Mortgage Bankers Financial Reporting WebMB Form submitted by 173 small and medium-sized independent mortgage companies and subsidiaries.

Mortgages serviced per full-time employee climbed to 980 from the fourth quarter’s 967. In the year-prior period, the total number serviced per employee was 959.

The increase was greater when comparing periods for firms surveyed in both the first quarter and the fourth quarter of last year, with the average climbing to 993 loans from 925 average loans serviced per full-time employee.

Total net servicing financial income swung to a 2.73-basis-point profit from a 3.52-basis-point loss in the fourth quarter but fell short of the 3.67-basis-point profit a year prior.

Companies that serviced fewer than a thousand loans had a loss of 20.41 BPS, while the total net financial income swung to a 3.79 basis-point profit when servicing portfolios were between 1,000 and 5,000. The number was 8.93 BPS for firms servicing between 5,000 and 50,000 mortgages, and it jumped to 10.21 BPS when servicing portfolios exceeded 50,000 units.

On a dollar basis, surveyed servicers earned $40 per loan, swinging from a $54 loss but trailing $65 per loan in the first quarter of last year.

Popular posts

How Long Does It Take to Refinance a Mortgage
How Long Does It Take to Refinance a Mortgage

So, you’re interested in refinancing your mortgage. Maybe you want some extra capital to do that home project you’ve always dreamed of, interest rates are nearing record lows, or you want to start consolidating debt. Regardless of the motivation behind the refinance,...

How Does Refinancing a Mortgage Work
How Does Refinancing a Mortgage Work

A home purchase is considered an investment, and a robust one at that. Savvy owners are constantly looking for new ways to reduce debt, save money, pay less in interest, and ultimately build equity. Refinancing is one way to leverage your investment and do just that....

What Does It Mean to Refinance Your Home
What Does It Mean to Refinance Your Home

You can think of refinancing your mortgage as a debt redo. Essentially, you’ll swap out the existing loan for a new one - ideally with better terms and conditions. Only this time it could help you save money on high mortgage payments, rather than just borrow it....

Setting up the Utilities in My New House
Setting up the Utilities in My New House

All the tedious, time-consuming home closing documents have been signed, sealed, and delivered. Your belongings are packed into what seems like a million boxes and you have a solid plan to haul all your existing furniture to the new place. Just as your boxes and...

When Is My First Mortgage Payment Due?
When Is My First Mortgage Payment Due?

Navigating your way through a brand new mortgage loan can be a difficult task, especially for first time homeowners. After handing over a large sum of money for the down payment and closing costs, it’s important to pay attention to the timing of your first mortgage...

Newsletter

Don’t worry, we don’t spam

calculate your monthly mortgage payment

Related Topics

Helpful Links

Daily mortgage rate trends

Best mortgage lenders

First-time homebuyers programs by state

Loan limits by state

Types of mortgages

APR vs interest rate

Understanding PMI

Related Posts

THE TRUSTED PROVIDER OF ACCURATE RATES AND FINANCIAL INFORMATION