The average production volume was $398 million per company, down from $436 million. The volume by count per company averaged 1,264 loans in the first quarter, down from 1,395 loans in the fourth quarter.
“A net production loss of 68 basis points in the first quarter of the year is an improvement over the record 99-basis-point loss reported in the fourth quarter of 2022,” said Marina Walsh, vice president of industry analysis at MBA. “Conditions continue to be challenging for the industry, with now four consecutive quarters of production losses and nine consecutive quarters of volume declines.”
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Total production revenue – which includes fee income, net secondary marketing income, and warehouse spread – jumped 41 basis points quarter over quarter to 358bps in the first quarter. On a per-loan basis, production revenues rose from $9,637 to $11,199 per loan.
“One silver lining from the first quarter is that production revenues improved by 40 basis points,” Walsh said. “However, costs continued to escalate with the further drop in volume and reached more than $13,000 per loan despite substantial personnel reductions.”
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