Most non point loan the borrowers only pay a very limited part of the whole cost. The main reason makes the cost higher is the regulation makes the origination work more complex and loan originator (brokers and lenders) have to do more work.
Based on Mortgage Bankers Association’s (MBA), Cost To Originate A Mortgage Hit New Peak In Q1 At $8,887 Per Loan.
These expenses – which include commissions, compensation, occupancy, equipment, and other production expenses and corporate allocations – increased to a study high of $8,887 per loan in the first quarter, which is up from $7,562 in the fourth quarter.
For comparison purposes, the average cost to originate a loan in 2008 was about $5,985, according to the MBA’s data.