Richey May & Co. has released its 2013 second quarter trend report for independent mortgage bankers. The quarterly benchmarking survey was created using Richey May Select, an analytical technology providing benchmarking information derived exclusively from independent mortgage bankers. Overall production among independent mortgage bankers increased 11 percent from the first to the second quarter of 2013. Among this quarter’s findings are:
►Profitability rose among independent mortgage bankers. Net income margins increased from the first to the second quarter of 2013.
►Net worth for independent mortgage bankers continues to climb, and increased roughly 20 percent during the second quarter of 2013. This is a continuing trend with capital increasing approximately 34 percent from the year ending December 31, 2012.
►Commissions have been on the decline since their four-month high in the fourth quarter of 2012, when they reached approximately 82 basis points. They averaged roughly 78 basis points in the second quarter of 2013, with four-month average commissions at approximately 80 basis points of total production.
“Independent mortgage bankers face different business challenges than the big banks do, particularly when it comes to profitability and fiscal spending,” said Ken Richey, managing partner of Richey May. “There are a lot of otherwise healthy companies that are suffering undetected losses and missed revenue opportunities. Those are financial leaks a company could easily begin to uncover with a tool like Richey May Select.”
Richey May Select allows users to gauge their businesses against those of their true peers, rather than solely on the market as a whole. It utilizes much of the same information that its confidential independent mortgage banker sources provide to the GSEs each quarter via the Mortgage Bankers’ Financial Reporting Form (MBFRF). The technology enables users to quickly and easily access current, relevant, and actionable peer-to-peer benchmarking information on various aspects of their financial, production, employment, warehousing and servicing operations. Users can tailor results to fit their specific needs, selecting the data that’s analyzed according to loan production volume; their primary operating model – whether retail, wholesale or direct-to-consumer; small, medium or large production platforms; and other unique characteristics and requirements.
