Loan Officer Commissions: Margins & Management (Webinar Recap)

As your trusted capital areas partner, we make an effort to provide relevant solutions for headache-inducing problems – such as for instance finishing tiresome and handbook calculations for the loan officers’ (LO) commissions.

Margin compression was a topic that is common, with LO commissions being a certain challenge we are going to reference in this essay.

In this webinar recap, we are going to summarize the conversations of y our panelists whom explain: two motorists of margin compression available in the market today, why LO commission administration issues 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 to you this real time webinar recording, accompanied by an extensive summary for the subjects talked about!

Loan Officer Commissions – Margins & Management Webinar

In this nationwide webinar, we invited our professionals within the industry to recommend recommendations and provide a fruitful pc software solution for managing or transitioning loan officer’s commissions.

Develop you certainly will enjoy viewing the event that is full. Additionally readily available for watching could be the presentation slide deck that is full. For lots more information regarding the speakers and summaries of the conversation points please keep reading below inside our synopsis following this webinar video clip.

In this movie webinar you shall understand:

  • Context and customer data on margin compression from MCT
  • Just exactly How LO payment calculations are strongly related your company’ profitability
  • Simple tips 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 were held twice in July 2018, the speakers talked about current market trends, recommended recommendations and reviewed a highly effective solution for handling or transitioning LO commissions.

This webinar showcased the panelists that are following

  • Bill Petersohn, MCT
    • Mr. Petersohn started the webinar by describing what causes 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 their tips for handling loan officer settlement to boost profitability.
  • Michael Lewis and Aliyah Nurani, ATI
    • Michael and Aliyah shut the webinar by showing to your attendees exactly exactly how time that is unnecessary on LO commission administration is paid off somewhat with a pc software solution called E-COM.

MCT Margins that is shrinking Context Customer Statistics

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

Mr. Petersohn is just a previous manager of gmac Bank into the Bulk Acquisition Group where he had been in charge of National Accounts and Bulk Sales and Operations. Mr. Petersohn was straight accountable for developing and supporting a few acquisition programs that include Assignments of Trade, Direct Trades, Bulk Purchases, Fannie Mae 3D – a joint work between Fannie Mae and GMAC Bank, and a Conduit Acquisition strategy with Wall Street Investment Banks and REITS. Mr. Petersohn is presently handling director and mind associated with the company Intelligence unit of MCT which offers competitive cleverness, functional audits, and actionable information insights which will make MCT consumers 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 following data:

  • The treasury that is 10-year expanded 45 bps ultimately causing a decline in loan prices
  • The FNMA 4.0 voucher TBA price decreased from 104.630 to 102.010
  • For MCT customers, the first lock cost for Q1 and Q2 ended up being an average of 50 bps less compared to Q4 2017
    • Why originators that are had been in competition begun to secure borrowers at reduced prices to have the deal, consequently bringing down the rates.

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 primary motorist with this compression is the fact that the interest in Mortgage Backed Securities (MBS) has fallen notably.

This fall in MBS need has two main drivers, the initial of which can be the federal book stability sheet runoff. Up to the termination of a year ago, the Federal Reserve ended up being a huge customer of MBS in 2007 and 2008 to aid us escape the recession. Now these are generally not any longer purchasing that numerous plus they are letting their stability sheet runoff about 20 billion yearly. This will be leading an oversupply and deficiencies in interest in MBS’s.

The next motorist for the drop in MBS need is really a yield that is flattening (the spread between 2yr and 10 yr yields narrowed). The aim of big purchasers of MBS’s, besides the Federal Reserve, would be to earn money regarding 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 cash supervisors to get somewhere else.

Measuring & Managing Margin Compression

Financial Services entrepreneur and indigenous Californian Mark Wilson is home financing banking CPA and also the creator of CWDL, CPAs, moms and dad business of Mortgage Banking CPA, a quickly growing review, income tax, and company firm that is advisory. Home loan Banking CPA is the consulting supply of CWDL CPA, which gives services to little independent mortgage bankers all of the way as much as big organizations. CWDL provides assurance, income tax, and company advisory solutions to business owners, non-profits entities, people, college districts, universities and neighborhood governments. Their solutions consist of:

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

E mail us for more information on CWDL CPAs

Here are a few techniques that Mortgage Banking CPAs has used in combination with customers to deal with the associated topics of margin compression and LO commissions.

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