Source: Callahan & Associates’ Non-Interest Income (NII) Study
Mortgage servicing fees declined 3.5% year-over-year among participants in Callahan & Associates' Non-Interest Income Study. Slowing mortgage sales to the secondary market in the first quarter meant less servicing fee income earned through NII channels.
After robust real estate activity caused first-quarter mortgage origination fee revenue to rise 142.9% from totals through the first quarter of 2021, a slowdown in the number of originations caused origination fees to halve year over year in the first quarter of 2022.
Even though fewer homes were sold in the first quarter of 2022 compared to a year ago, higher home prices kept the dollar amount of real estate originations high. The median listing price of a home in the U.S. increased 26.5% to $404,950 from March 2020 to March 2022.
The number of mortgages slowing was a result of few available homes on the market after a frenzy of buying the past two years.
Above data are for credit unions who participate in Callahan’s Non-Interest Income (NII) study – if you would like more information on how to participate, email email@example.com