GRAPH OF THE WEEK: Mortgage Slowdown Cuts Origination Fees In Half

Income from mortgage originations and servicing were down from one year ago following slowdowns in sales and refinancing.

 
 

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 analystsupport@callahan.com