Yellow Brick Road has booked a loss of A$2.7 million on the carrying value of its trail commissions, as the high level of mortgage refinancing pushes loan runoff rates to high levels. Volatile mortgage market conditions have taken their toll on YBR. The loss on the carrying value of the trail book and a 16.8 per cent fall in revenue from contracts with customers were the main contributors to a loss of $1.8 million for the six months to December. Net cash used in operating activities was $683,000. The mortgage broking industry had a good year last year, with broker share of home loan distribution rising to a record high of 71.7 per cent. YBR settlements were up 57.4 per cent to $21.1 billion in the 2021/22 financial year but there was no growth in the December half, when settlements of $10.6 billion during half were down 1.5 per cent from $10.8 billion in the previous corresponding period. The value of the loan book was 11.4 per cent higher year-on-year at $61.6 billion. The company has been investing in its own funded loan pool since 2019, when it established a joint venture, Resi Wholesale Funding, with asset manager Magnetar Capital to launch a mortgage-backed securitisation program.  RWF’s funded loans reached $376 million in the half – up from $227 million in the previous corresponding period. The funded loan program is designed to drive growth and increase margin but it will be a while before the book is big enough to make much of an impact on group margin.