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Servicer Earnings Off as Portfolios Grow

Independent mortgage servicers boosted their portfolios in the second quarter, though they are earning less per loan. The average mortgage servicing employee is able to handle more loans than in prior periods.

The average mortgage servicing portfolio for independent mortgage servicers and servicing subsidiaries of chartered banks was 34,146 loans for $5.104 billion in the second quarter.

Average servicing portfolios have grown from 30,291 mortgages serviced for $4.388 billion as of the first quarter.

In the second-quarter 2011, the average was 40,122 loans serviced for $6.166 billion — though the year-earlier total dropped down to 29,121 loans serviced for $4.241 billion when only considering servicers that participated in both surveys, according to the Quarterly Mortgage Bankers Performance Report Q2 2012 from the Mortgage Bankers Association.

The findings were based on operating data submitted by 170 servicers.

Second-quarter average loans serviced per full-time employee was 1,045, improving from the previous period’s 980 and 1,013 in the same period during the previous year.

Total net servicing financial income was $39 a loan, off from $40 in the prior period and sinking from $64 in the second-quarter 2011.

Direct servicing revenues climbed to $455 per loan from $435 per loan in the first three months of the year but slipped from $490 a loan a year ago. Second-quarter direct servicing revenues reflected $378 in servicing fees, $33 in sub-servicing fees and $44 in ancillary income including late fees.

Direct servicing expenses were $200 a loan, up from $197 in the prior quarter but lower than $229 in the same period a year ago.

Second-quarter indirect expenses were $44 per loan, while net interest income was $3 per loan.

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