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