Report: Production, Profits Up at Independent Mortgage Bankers

Production and profitability both increased among independent mortgage bankers last quarter, though commissions continue to decline, according to a quarterly trend report released by ""Richey May & Co."":http://richeymay.com/

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The quarterly benchmarking survey--put together using the company's Richey May Select analytical technology--shows overall production increased among independent mortgage banks by 11 percent from the first quarter to the second.

Profitability was also up, with net margins increasing quarter-over-quarter. Net worth for independent mortgage banks was up roughly 20 percent, with capital increasing nearly 34 percent year-to-date as of the end of the quarter.

On the other hand, commissions averaged roughly 78 basis points in Q2, with four-month average commissions at approximately 80 basis points of total production. According to Richey May, commissions have been on the decline since the fourth quarter of 2012, when the four-month average reached a high of 82 basis points.