GREENWOOD VILLAGE, Colo.–Mortgage origination costs have gotten higher in 2017, and one analysis suggests the trend will only continue in 2018.
Data released by STRATMOR Group found that since 1010, the cost to originate a mortgage loan has increased by $1,700 in marketing and sales costs, and $800 in operational costs per loan. Overall, profitability on mortgage loans has decreased every year since 2013, according to the company.
In a statement, Garth Graham, a senior partner with STRATMOR, said one way to reduce costs is to have a clear business plan and a strategy for mortgages in place before pursuing digital tools.
The company said it has found that many technology solutions require extensive training before LOS can be fully utilized, so it’s essential for a lender to understand its in-house level of expertise before purchasing advanced solutions.
STRATMOR further reported that based on a census of industry-based data from lender clients, it is estimating that approximately 40% of originators are bringing in 80% of the business.