Refi Share of Q4 Originations Reaches 57%: MBA

The refinance share of originations ran up to 57 percent for independent mortgage banks during the fourth quarter last year, according to the ""Mortgage Bankers Association"":http://www.mbaa.org/default.htm (MBA).

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The trade group said in a fourth-quarter performance report Thursday that new numbers for refinance share reflected a jump from 45 percent seen in the third quarter.

""The fourth quarter 2011 results were mixed for mortgage bankers,"" ""Marina Walsh"":http://www.mbaa.org/files/SpeakersBureau/WalshMbio.pdf, MBA's associate VP of industry

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analysis, said in a statement. ""Mortgage volume increased in the fourth quarter, driven by heavier refinancing activity, translating into higher productivity.""

Chartered financial institutions and independent bankers profited by $1,093 from each loan made in the fourth quarter, a decline from $1,263 per loan in the third quarter last year.

Average production income hovered around 58 basis points in the fourth quarter, down from roughly 66 basis points seen in the third quarter.

Companies saw $313 million in production volume on average over the same time frame, up from $237 per company in the third quarter.

The MBA said that the net cost to originate loans ├â┬ó├óÔÇÜ┬¼├óÔé¼┼ô a combination of production operating expenses and commissions ├â┬ó├óÔÇÜ┬¼├óÔé¼┼ô averaged $3,324 in the fourth quarter, down from $3,360 per loan from the third quarter.

Personnel expense also fell to $3,226 per loan over the fourth quarter, down from $3,317 per loan from the third quarter.

Seventy-two percent of the 300 companies that fielded production numbers during the fourth quarter were independent banks, according to the MBA.