WASHINGTON, D.C. – RealEstateRama – Independent mortgage banks (IMBs) and mortgage subsidiaries of chartered banks reported a pre-tax net production profit of $973 on each loan they originated in the second quarter of 2026, compared to a net production profit of $727 per loan in the first quarter of 2026, according to the Mortgage Bankers Association’s (MBA) newly released Quarterly Mortgage Bankers Performance Report.
“Average net production profits remained positive for the fifth consecutive quarter, continuing the industry’s turnaround from widespread losses between 2022 and 2024,” said Marina Walsh, CMB, MBA’s Vice President of Industry Analysis. “Average production volume per firm was $689 million, the highest level since the second quarter of 2022. While production revenues dropped from the previous quarter as gain-on-sale margins narrowed, production expenses also decreased, reaching their lowest level in basis points since the third quarter of 2021.”
Added Walsh, “Quarterly production profits are still lower than the historical average of 39 basis points dating from 2008, but overall, mortgage companies are managing to stay in the black. Combining both production and servicing operations, roughly 85 percent of the more than 330 mortgage companies in our sample posted overall profits.”
Key Findings of MBA’s Second-Quarter 2026 Quarterly Mortgage Bankers Performance Report include:
- The average pre-tax production profit was 25 basis points (bps) in the second quarter of 2026, compared to profit of 16 bps in the first quarter of 2026. The average quarterly pre-tax production profit, from the second quarter of 2008 to the most recent quarter, is 39 basis points.
- The average production volume was $689 million per company in the second quarter, up from $621 million per company in the first quarter of 2026 and up from $636 million one year ago. The volume by count per company averaged 1,958 loans in the second quarter, up from 1,729 loans in the first quarter of 2026, and up from 1,862 loans one year ago.
- Total production revenue (fee income, net secondary marketing income, and warehouse spread) decreased to 333 bps in the second quarter, down from 353 bps in the first quarter. On a per-loan basis, production revenues increased to $11,909 per loan in the second quarter, down from $12,626 per loan in the first quarter.
- Total loan production expenses – commissions, compensation, occupancy, equipment, and other production expenses and corporate allocations – decreased to 308 basis points in the second quarter of 2026 from 336 basis points in the first quarter. Per-loan costs decreased to $10,936 per loan in the second quarter, down from $11,898 per loan in the first quarter. From the second quarter of 2008 to last quarter, loan production expenses have averaged $7,945 per loan.
- The purchase share of first mortgage originations, by dollar volume, was 80 percent. For the mortgage industry as a whole, MBA estimates the purchase share was at 63 percent in the second quarter of 2026.
- The average loan balance for first mortgages decreased to $386,359 in the second quarter, down from $387,881 in the first quarter. The average loan balance for total mortgages (firsts, seconds, HELOCs, other) decreased to $368,357 in the second quarter from $371,648 in the first quarter.
- Servicing net financial income for the second quarter (without annualizing) was $80 per loan serviced, up from $77 per loan serviced in the first quarter. Servicing operating income, which excludes MSR amortization, gains/loss in the valuation of servicing rights net of hedging gains/losses, and gains/losses on the bulk sale of MSRs, was $85 per loan serviced in the second quarter, down from $93 per loan serviced in the first quarter.
- Including all business lines (both production and servicing), 85 percent of the firms in the report posted pre-tax net financial profits in the second quarter of 2026, up from 76 percent in the first quarter of 2026.
MBA’s Mortgage Bankers Performance Report series offers a variety of other performance measures on the mortgage banking industry including revenue and cost breakouts, productivity, product mixes for originations and servicing volume, and pull-through rates. MBA’s Mortgage Bankers Performance Report is intended as a financial and operational benchmark for independent mortgage companies, bank subsidiaries and other non-depository institutions. Eighty-two percent of the 334 companies that reported production data for the second quarter of 2026 were independent mortgage companies, and the remaining 18 percent were subsidiaries and other non-depository institutions.
There are five Mortgage Bankers Performance Report publications per year: four quarterly reports and one annual report. To purchase or subscribe to the publications, please visit www.mba.org/PerformanceReport. Media wishing to view a copy of either report should contact Falen Pitts at (202) 557-2771 or 
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Falen Taylor
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