A new Consumer Financial Protection Bureau regulation has increased overhead, thereby cutting profits 60% in Q4 ’15 on loans originated by independent mortgage banks and mortgage bank subsidiaries.
The TILA-RESPA Integrated Disclosures rule (TRID), implemented in October, helped cut net gains to $493/loan, down from $1,238 in Q3, according to the Mortgage Bankers Association.
Total loan production expenses spiked over the same time period—commissions, compensation, occupancy, among others—to $7,747/loan, up from $7,080/loan in Q4, and helped up personnel expenses as well, from $4,674 to $5,131/loan.
“The fourth quarter marked the second-highest level of production expenses per loan since the inception of our report in the third quarter of 2008,” says Marina Walsh, MBA’s VP of industry analysis. [HousingWire]
