Nonbank mortgage lenders boosted loan production by 50% in the second quarter, relying heavily on higher purchase volumes, Richey May & Co. said Monday.
Purchase volumes rose 62% from the first quarter, refinancings increased 20% and unfunded lock pipeline volumes jumped 38%, according to the advisory firm's second-quarter Trend Report for Independent Mortgage Bankers.
The 37 nonbank mortgage lenders surveyed in the report averaged total loan production of $466 million, and pretax profits of $2.1 million, in the second quarter, Richey May said.
"The improved market conditions will continue through the coming months," Kenneth Richey, the firm's managing partner, said in a press release. The increase in unfunded lock pipelines suggests that we can expect to see similar, if not more improved, production in the third quarter of 2014 as well.
Linked-quarter profits on average improved 57 basis points, marking the first increase in the past three quarters, Richey May said. Many of the lenders posted pre-tax profit increases of up to 100 basis point, the firm said.