Key facts
- Independent mortgage banks (IMBs) and their subsidiaries reported increased production profits in Q2 2026.
- Average pretax net production profit per loan reached $973, up from $727 in Q1 2026.
- Production profit margin rose to 25 basis points, while production expenses fell to 308 basis points.
- Average production volume per company increased to $689 million, the highest since Q2 2022.
- 85% of companies reported pretax net financial profits in Q2 2026, an increase from 76% in Q1.
Independent mortgage banks (IMBs) and their subsidiaries saw their production profits increase in the second quarter of 2026, according to the Mortgage Bankers Association's (MBA) Quarterly Mortgage Bankers Performance Report. The average pretax net production profit per loan rose to $973, up from $727 in the first quarter, marking the fifth consecutive quarter of positive net production profits.
The average production profit margin improved to 25 basis points in Q2 2026, compared to 16 basis points in Q1 2026, though it remains below the historical average of 39 basis points since 2008. This profitability boost occurred despite a drop in production revenues, as production expenses also decreased significantly.
Production expenses fell to 308 basis points, reaching their lowest level since the third quarter of 2021. Per-loan costs dropped from $11,898 to $10,936. Concurrently, average production volume per company reached $689 million, the highest since Q2 2022, and the average number of loans originated per company increased to 1,958.
Overall, 85% of the companies in the MBA's sample reported pretax net financial profits in Q2 2026, an increase from 76% in the previous quarter. The servicing segment also remained profitable, with net financial income at $80 per loan serviced. Purchase loans constituted 80% of first-mortgage originations by dollar volume.