Mortgage banking profits fell during the first quarter of 2006 even though most margins on new loan production increased, according to a new analysis by Inside Mortgage Profitability. A diverse group of 27 major mortgage lenders reported a combined $2.76 billion in earnings on their mortgage operations during the first quarter of this year. That was down 8 percent from the $3.01 billion these same firms reported in the fourth quarter of 2005. … [One data table included]