In a recent study conducted by Freddie Mac, it was revealed that retail lenders are facing a significant increase in the average cost to originate a loan. The cost has risen to $11,600 in the third quarter of 2023, representing a substantial 35% surge compared to the last quarter of 2020. This surge in origination costs is indicative of the challenges faced by lenders in the mortgage industry, as they navigate through changing market dynamics and evolving regulatory requirements.
Key findings from the study include:
– Retail lenders’ average cost to originate a loan has skyrocketed to $11,600 in the third quarter of 2023
– This figure represents a notable 35% increase compared to the last quarter of 2020
– The surge in origination costs reflects the challenges faced by mortgage lenders in adapting to market changes and regulatory demands
– The study was conducted by Freddie Mac, providing valuable insights into the current landscape of the mortgage industry
You can read this full article at: https://www.housingwire.com/articles/top-cost-effective-retail-lenders-produce-loans-at-half-the-industry-average-freddie-mac/(subscription required)
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