“While
overall
production
profits
were
positive,
some
lenders
are
still
struggling
in
this
tough
market
environment,”
Walsh
added.
“For
example,
for
the
sub-group
of
lenders
with
an
annual
production
volume
of
less
than
$500
million
in
2024,
average
net
production
losses
continued
for
the
third
consecutive
year.
It
has
been
difficult
to
spread
the
fixed
costs
of
originating
loans
over
[a]
lower
volume.”

Encompassing
both
the
production
and
servicing
business
lines,
68%
of
the
firms
in
MBA’s
survey
posted
pretax
net
profits
in
2024,
up
from
36%
in
2023
and
53%
in
2022.

But
the
MBA
clarified
that
without
profits
from
the

servicing
side
of
the
business,
the
percentage
of
firms
with
overall
net
profits
would
have
fallen
to
56%
in
2024.

In
2024,
the
average
production
volume
per
company
rose
to
$2.1
billion
(or
6,259
loans),
up
from
$1.9
billion
(or
6,021
loans)
in
2023.
For
repeat
participants,
volume
averaged
$2.4
billion
(7,284
loans)
in
2024,
up
from
$2
billion
(6,380
loans)
in
2023.

Total
production
revenues
(which
include
fee
income,
net
secondary
marketing
income
and
warehouse
spread)
increased
to
345
basis
points
(bps)
or
$11,520
per
loan,
up
from
329
bps
($10,202)
in
2023.
Expenses
such
as
commissions,
compensation,
occupancy
and
equipment
fell
slightly
to
$11,076
per
loan,
down
from
$11,258
the
year
prior.

As
a
result,
average
production
income
improved
to
10
bps,
compared
to
a
loss
of
37
bps
in
2023.
Since
the
inception
of
the
MBA’s
annual
performance
report
in
2008,
net
production
income
by
year
has
averaged
47
bps
($1,077
per
loan).

The

refinance
share
of
originations
for
IMBs
rose
to
16%
(up
from
11%
in
2023).
For
the
mortgage
industry
as
a
whole,
the
MBA
estimated
a
refi
share
of
27%,
up
from
16%
in
2023.

The
average
balance
for
first-lien
mortgages
hit
a
record
high
of
$357,631,
up
from
$331,437
a
year
earlier.
Net
servicing
income
grew
to
$301
per
loan,
up
from
$263
in
2023.