Independent mortgage banks and lending subsidiaries of chartered banks posted an average profit of $2,152 in the second quarter on newly originated loans, up from $1,654 per loan in the first quarter, the Mortgage Bankers Association (MBA) said.

The association attributed this increase in origination profits to a sharp increase in loan volumes with the average production volume per company hitting $371 million in 2Q, up from $301 million in 1Q. 

The home purchase share of total originations reached 48% in 2Q, up from 42% in the previous quarter.

"With the surge in production volume in the second quarter, net production profits among independent mortgage bankers increased, surpassing 100-basis points for the first time since inception of our report in 2008," said MBA associate vice president of industry analysis Marina Walsh.

"Secondary marketing gains improved by almost 14-basis points over the first quarter, the result of widening spreads between the primary and secondary markets. With the record volume, total production operating expenses also decreased by $164 per loan over the first quarter," Walsh added.

The average net production income in basis points for the second quarter hit 107 basis points, up from 82 basis points in the first quarter.

The net cost to originate a loan fell to $3,224 in the second quarter, down from $3,413 in the first quarter. The net cost to originate a loan calculates production operating expenses and commissions minus all fee income.

Seventy-two percent of the companies reporting production data for 2Q were independent mortgage companies.