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Article: Reexamining 1994. (mortgage banking industry)
- Article from:
- Mortgage Banking
- Article date:
- October 1, 1995
- Author:
CopyrightCOPYRIGHT 1995 Mortgage Bankers Association of America. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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An annual study of the industry's performance confirmed that 1994 was a difficult year in mortgage banking. Profits at the average firm plummeted to less than 5.8 percent before taxes--a steep drop from 1993's 13.6 percent net profit margin.
Looking back, the mortgage banking business experienced a difficult transition year in 1994, as mortgage lenders dramatically downshifted from the record-setting pace of 1993. With mortgage rates rising by more than two full percentage points throughout the year, refinancing transactions plunged, leaving mortgage banking companies scrambling for business with unprecedented excess origination capacity. * As expected and confirmed ...