Record-breaking loss US banks on mortgages

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US banks experienced a loss on mortgages in 2022 for the first time on record, with a loss of approximately $301 per loan originated.

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The sudden surge in mortgage rates, combined with a scarcity of affordable housing options, has resulted in a significant decline in both purchase and refinance activity.

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Last year's loan loss was caused by a significant increase in mortgage rates in 2022, but rates have since slightly decreased.

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Loan volumes have plummeted by 50% in the past year, resulting in a decrease from 16,590 loans per company to 8,371 loans per company.

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The cost of making a loan has surged from $8,664 in 2021 to $10,624 in 2022, resulting in significant losses for the lenders.

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Companies were unable to adapt their capacity quickly enough, leading to a significant drop in productivity.

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The year 2022 will witness an all-time low of 1.5 closed loans per production staff.

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The number of millennial homeowners is expected to increase, outnumbering renters in 260 US metropolitan areas.

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