Mortgage bankers all across the country complained about sharply lower gain-on-sale margins during 2005 that culminated in declining profitability, but the industry actually posted stronger profits last year as a result of improving results on servicing operations. A new analysis by Inside Mortgage Profitability, an affiliated newsletter, shows that aggregate mortgage profits for a diverse group of 29 lenders rose 22 percent from 2004 to 2005. Collectively, the 29 firms reported $10.65 billion in mortgage… [One data table included]