![]() ![]() “Without servicing, that percentage would have dropped to 52 percent,” Walsh says. ![]() Including all business lines – both production and servicing – 71 percent of the firms in the Mortgage Bankers Association’s Quarterly Mortgage Bankers Report posted a pre-tax net financial profit in the third quarter. When profits from loan originations are down, as they were in the third quarter of 2018, servicing income can pick up the slack, so a mortgage institution remains profitable.Īccording to Marina Walsh, vice president of industry analysis for the Mortgage Bankers Association (MBA), “Mortgage servicing remains a bright spot for bankers, with relatively low delinquencies and high loan balances driving up per-loan servicing revenues.” When costs are controlled with the right servicing software, servicing can be lucrative. If one takes the current average mortgage loan balance of $202,284 (as of the first quarter) and multiplies it by the standard service fee of 25 basis points, that’s on average an additional $505,710 per employee per year generated by service fee income alone.Īncillary income, such as late fees, increases this potential income. Moneyhouse loan servicing software#Well-trained staff using the right mortgage servicing software can service 1,000 or more loans per employee per month. ![]() In-house servicing can act as a valuable profit center for servicers selling loans into the secondary market (i.e., Fannie Mae, Freddie Mac and Ginnie Mae). ![]()
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