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Mortgage Servicing Profits Soar

As independent mortgage servicers have grown their servicing portfolios, per-loan servicing profits have soared. Meanwhile, the average servicing employee is handling more loans.

The average independent mortgage company serviced 62,525 loans for $10.052 billion in the second quarter of this year.

Average servicing portfolios grew from the average 58,258 loans that were serviced for $9.309 billion in the first quarter and the 34,146 units serviced for $5.104 billion during the same three-month period in 2012..

The Mortgage Bankers Association reported the findings in its Quarterly Mortgage Bankers Performance Report Q2 2013. The report was based on a survey of 208 independent mortgage companies.

First- and second-quarter data were based on 186 servicers that participated in MBA’s surveys during both periods, while the year-earlier numbers reflect all of the 214 servicers that participated during that quarter.

Headcount averaged 110 employees, up from 102 in the first quarter and 73 in the second-quarter 2012.

Average loans serviced per full-time employee improved to 1,140 from 1,002 in the first quarter and 1,045 in the second-quarter 2012.

Servicers earned $282 in net servicing financial income per loan during the second quarter, soaring from $170 in the prior period and just $39 a year earlier.

Total net financial income was 15.53 BPS, more than the prior quarter’s 10.02 BPS and the 3.20 BPS in the same quarter during the prior year.

Based on data from all firms, companies that serviced less than 2,500 loans earned less than 12 BPS, while earnings jumped to more than 18 BPS for firms that serviced between 2,500 and 50,000 loans. But it dropped to just over 10 BPS for servicers with portfolios of more than 50,000 loans.

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