|
|
Article: Economic trends. (Ratio Analysis Survey) (column)
- Article from:
- Mortgage Banking
- Article date:
- March 1, 1990
- Author:
CopyrightCOPYRIGHT 1990 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)
|
ECONOMIC TRENDS
Although many would like to, few mortgage bankers can forget 1987, the industry's worst year in recent history. From the soaring profit margins of 1986, profits plunged to barely above zero in 1987 in the wake of declining origination volume and higher interest rates. Since then the industry has been working hard to contain costs and improve profitability. Recent evidence suggests that maybe, just maybe, the industry has turned the corner.
The evidence is the performance in the third quarter of 1989 of the 11 firms that responded to MBA's Ratio Analysis Survey (RAS) for this quarter and the third quarter of 1988. On average, between the ...