US Mortgage Lenders Losing Money Due to Unaffordable Housing and High Loan Production Costs
TL;DR
Banks and mortgage subsidiaries lost an average of $301 per mortgage financed in 2022, marking the first negative profit recorded by the Mortgage Bankers Association. The decrease in housing activity, high mortgage rates, and limited housing supply have led to a decline in business and increased costs of financing a loan. This has resulted in a 113% decrease from last year's average income of $2,339 per mortgage. Experts warn that the US housing market could see a significant correction as the shrinking demand leads to a drop in home prices.
- Housing is so unaffordable that banks are losing money on each mortgage Markets Insider
- Lenders Lost $301 for Each Mortgage They Made Last Year The Wall Street Journal
- Why US mortgage lenders lost money on home loans for the first time on record New York Post
- Excess workforce drove up loan production costs more than 20% last year National Mortgage News
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