First Losses in Mortgage Loan Originations Following Record Highs

Mortgage lenders lost an average of $301 on loans originated in 2022, the first year reporting losses since tracking began in 2008, after a record high in 2021 when earnings averaged $2,339 per loan. Average loan production volume was also down by nearly half of 2021’s extraordinary 16,590 loans per company, with refinancings accounting for only 30% of volume compared to 57% in 2021. With currently high interest rates, low housing inventory and affordability challenges, volume is not expected to improve before 2024.

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