Mortgage bankers only made 5 basis points on each loan originated in the fourth quarter, preliminary data from the Mortgage Bankers Association showed, as the cost to produce reached an all-time high.
The situation is “very, very challenging and very similar to what we saw in 2018,” Mortgage Bankers Association Chief Economist Mike Fratantoni said during the group’s Secondary and Capital Markets Conference on May 16. “This is coming both from a reduction in revenue as pricing gets a little bit tighter, and we’re seeing — at least on dollar per loan basis — we’re at an all-time high in terms of costs to originate at about $10,600 per loan.”
Mid America Mortgage on Monday announced that it has agreed to sell its main retail division to Legend Lending.
Financial terms of the deal were not disclosed. Mid America will selectively retain some retail for certain products and portfolio retention, and remain active in automation, secondary marketing executions for specialty products, correspondent and wholesale. The deal includes an earnout and Legend will continue to use Mid America’s loan origination system.
“We wanted to refocus on third-party originations and technology solutions,” said Mid America President Jeff Bode. He plans to rebrand his company as Clickn’ Close in late May, pending regulatory approval.
Credit repair companies had been a particular focus over the past year for Frank McKenna, the chief strategist at Point Predictive, a risk management technology company.
A certain case on the matter recently caught his eye. The credit washing injunction issued against Alex Miller Credit Repair by the Federal Trade Commission in a
The impact of falling volumes and decreased margins drove loanDepot into the red during the first quarter, with the company posting its first quarterly loss since.
LoanDepot reported a net loss of $91.3 million in the first quarter after posting profits of $14.7 million over and $427.8 million one year ago. The loss represented drops of 721% and 121%, respectively.