Mortgage lenders saw a measurable boost in the profit margins on their loan production activities during the first quarter of 2004, while servicing slumped, according to a new analysis by Inside Mortgage Profitability. A sample of six major lenders – including the three largest in the market – showed income from production activities edged up 1.7 percent from the fourth quarter of 2003. The group reported a combined $1.70 billion in production income for