Loan Officer Commissions: Margins & Management (Webinar Recap)


Loan Officer Commissions: Margins & Management (Webinar Recap)

As your trusted capital markets partner, we strive to provide solutions that are applicable headache-inducing problems – such as for instance finishing tiresome and handbook calculations for the loan officers’ (LO) commissions.

Margin compression happens to be a topic that is common, with LO commissions being a certain challenge we shall reference in this specific article.

In this webinar recap, we shall summarize the talks of y our panelists whom explain: two motorists of margin compression available in the market today, why LO payment administration things for keepin constantly your company lucrative, and exactly how to eliminate inefficiencies in determining LO commissions by leveraging a technology solution.

We have been excited to provide for your requirements this real time webinar recording, followed closely by a thorough summary regarding the subjects talked about!

Loan Officer Commissions – Margins & Management Webinar

In this webinar that is national we invited our specialists within the industry to recommend recommendations and provide a successful pc pc software solution for managing or transitioning loan officer’s commissions.

Develop you certainly will enjoy viewing the complete occasion. Additionally designed for watching could be the presentation slide deck that is full. For lots more information about the speakers and summaries of the conversation points please continue reading below inside our synopsis following this video that is webinar.

In this movie webinar you shall find out about:

  • Context and customer data on margin compression from MCT
  • Exactly just How LO payment calculations are strongly related your company’ profitability
  • How exactly to leverage the E-COM program to:
    • Automate payment calculations without spreadsheets or calculations
    • Documenting your commissions’ workflow for audits
    • Using commissions information for top-level performance evaluations

Summary – LO Commissions: Margins & Management Webinar

In this webinar that is national happened twice in July 2018, the speakers talked about market styles, recommended recommendations and reviewed a fruitful solution for handling or transitioning LO commissions.

This webinar showcased the panelists that are following

  • Bill Petersohn, MCT
    • Mr. Petersohn started the webinar by explaining the sources of margin compression to give the webinar context in light of economy activities.
  • Mark Wilson, CWDL CPAs
    • Next in line to talk, Mark Wilson detailed how margin compression impacts business profitability. Most effective had been his tips for managing loan officer settlement to improve profitability.
  • Michael Lewis and Aliyah Nurani, ATI
    • Michael and Aliyah shut the webinar by showing to your attendees just just exactly how time that is unnecessary on LO payment administration are paid off somewhat with a computer software solution called E-COM.

MCT Margins that is shrinking Context Client Statistics

About Presenter – Bill Petersohn – MCT, Handling Director & Company Intel. Lead

Mr. Petersohn is a previous manager of gmac Bank when you look at the Bulk Acquisition Group where he had been accountable for National Accounts and Bulk Sales and Operations. Mr. Petersohn happens to be straight in charge of developing and supporting a few purchase programs that consist of Assignments of Trade, Direct Trades, Bulk Purchases, Fannie Mae 3D – a joint effort between Fannie Mae and GMAC Bank, and a Conduit Acquisition strategy with Wall Street Investment Banks and REITS. Mr. Petersohn is currently handling manager and mind for the company Intelligence unit of MCT which gives competitive cleverness, functional audits, and actionable information insights to produce MCT customers more profitable.

At MCT we observed that most of our clients experienced margin compression into Q1 and Q2 of 2018.

During this time period we observed the statistics that are following

  • The treasury that is 10-year expanded 45 bps resulting in a reduction in loan pricing
  • The FNMA 4.0 Coupon TBA price decreased from 104.630 to 102.010
  • For MCT consumers, the first lock cost for Q1 and Q2 ended up being an average of 50 bps less compared to Q4 2017
    • Why? Originators that had been in competition started to secure borrowers at reduced prices to have the offer, consequently bringing down the prices.

Motorists of Margin Compression

We felt it necessary to explain why TBA pricing dropped faster than expected as we are helping to manage our clients’ hedging and profitability. The driver that is main of compression is the fact that the interest in Mortgage Backed Securities (MBS) has fallen somewhat.

This fall in MBS need has two primary drivers, the very first of which will be the reserve balance sheet runoff that is federal. The Federal Reserve was a big buyer of MBS in 2007 and 2008 to help us get out of the recession up until the end of last year. Now these are typically not any longer purchasing that numerous and are permitting their stability sheet runoff about 20 billion yearly. It is leading an oversupply and too little interest in MBS’s.

The 2nd driver regarding the fall in MBS need is just a yield that is flattening (the spread between 2yr and 10 yr yields narrowed). The aim of big purchasers of MBS’s, aside from the Federal Reserve, is always to generate income on the spread of great interest prices. Given that that spread is narrowing, MBS’s are less attractive of a good investment, causing banking institutions, REITs, and money supervisors to get somewhere else.

Measuring & Managing Margin Compression

Financial Services entrepreneur and indigenous Californian Mark Wilson is a home loan banking CPA as well as the founder of CWDL, CPAs, moms and dad business of Mortgage Banking CPA, a quickly growing review, taxation, and company advisory company. Home loan Banking CPA is the consulting supply of CWDL CPA, which supplies solutions to little mortgage that is independent all of the way up to big institutions. CWDL provides assurance, taxation, and company advisory solutions to business owners, non-profits entities, people, college districts, universities and regional governments. Their solutions consist of:

  • Assurance Services – AUDITS, RATINGS, COMPILATIONS
  • Tax & Advisory Solutions – PREPARING & PREPARATION
  • Fraud Investigations & Forensic Audits – EXAMINATIONS, AGREED UPON PROCEDURES

E mail us for more information on CWDL CPAs

Below are a few methods that Mortgage Banking CPAs has combined with customers to deal with the associated topics of margin compression and LO commissions.