Submitted by Naomi M on Thu, 10/11/2007 - 00:45.
Mortgage lenders lost money last year
The Mortgage Bankers Association, in a report based on 2006 data collected from 189 companies that make up more than half of total U.S. mortgage lending, said lenders lost an average of $50 per mortgage last year. That was down from a profit of $258 per loan a year earlier.
The narrow gap between short- and long-term interest rates along with high staffing levels made lending unprofitable for many companies, the report said.
Mortgage lenders did make money from servicing loans to the tune, on average, of pretax profit of $6.4 million last year, yet this was down 75 percent from $26 million a year earlier, the report said.
The narrow gap between short- and long-term interest rates along with high staffing levels made lending unprofitable for many companies, the report said.
Mortgage lenders did make money from servicing loans to the tune, on average, of pretax profit of $6.4 million last year, yet this was down 75 percent from $26 million a year earlier, the report said.
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