That is a challenging question to answer these days. We have seen our industry go through a seismic shift in how we handle the regulatory burden. We have just come off the historic TRID changes and we are now fully embarking on the new HMDA changes.

In a March 28, 2017 issue of Housingwire magazine, Mike Fratantoni, Chief Economist of the Mortgage Bankers Association stated, “If people look at the cost to produce a loan a decade ago, it was around, $4,000, and now it’s around $7,000 and $8,000”. (1) The peak hit in Q1 of 2017 when the average cost to produce a loan was $8887. (2)

Fast forward to today and we are about to implement training, technology upgrades and human capital expenditures to handle the new HMDA requirements. This will only increase the cost per loan.

Northpointe Community Lending has developed a simple Cost Template to help community banks find out where they stand in their cost to produce a mortgage loan. To receive the template, email Neil Armstrong, SVP of Community Lending at



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