Independent mortgage bankers and subsidiaries made an average profit of $902 on each loan they originated in the third quarter of this year, according to the Mortgage Bankers Association (MBA). 

This profit marks a decrease from the second quarter when profits averaged $1,358 per loan, according to the MBA’s most recent Quarterly Mortgage Bankers Performance Report. The report measures the performance of independent mortgage bankers and subsidiaries of banks, thrifts and hedge funds.

"Production profits were still healthy in the third quarter of 2009, although not at the same level that we saw in the second quarter," said Marina Walsh, MBA’s Associate Vice President of Industry Analysis.  "For lenders in our study, average production volume dropped 33 percent in the third quarter 2009, along with a drop in the refinancing share of total originations. The overall decline in production volume combined with a heavier purchase share resulted in higher per-loan production expenses, which pulled down production profits." 

The study showed 82 percent of the firms in the study posted pre-tax net financial profits in the third quarter.  In the second quarter, 96 percent of the companies posted profits.

The average production volume for each firm was $189.6 million in the third quarter, compared to $280.9 million in the second quarter, according to the study.

The share of refinancings to total originations for this sample dropped to 44 percent in the third quarter, from 62 percent in the second quarter. This share was still higher than the 32 percent for the third quarter of last year.