Loan Officer Commissions: Margins & Management (Webinar Recap)


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 manual calculations for the loan officers’ (LO) commissions.

Margin compression happens to be a topic that is common, with LO commissions being a specific challenge we’re going to reference in this essay.

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

Our company is excited to present to you this live webinar recording, accompanied by an extensive summary regarding the subjects talked about!

Loan Officer Commissions – Margins & Management Webinar

In this nationwide webinar, we invited our specialists into the industry to recommend guidelines and provide a highly effective pc pc software solution for managing or transitioning loan officer’s commissions.

We hope you certainly will enjoy viewing the complete occasion. Also designed for watching could be the presentation slide deck that is full. For lots more information regarding the speakers and summaries of these conversation points please keep reading below inside our synopsis following this webinar video clip.

In this video clip webinar you shall understand:

  • Context and customer data on margin compression from MCT
  • Exactly exactly exactly How LO commission 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 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 describing what causes margin compression to give the webinar context in light of economy occasions.
  • 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 improve profitability.
  • Michael Lewis and Aliyah Nurani, ATI
    • Michael and Aliyah shut the webinar by showing towards the attendees just just how unneeded time invested on LO payment management may be paid down dramatically with a computer software solution called E-COM.

MCT Margins that is shrinking Context Customer Statistics

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

Mr. Petersohn is really a director that is former of Bank within the Bulk Acquisition Group where he had been accountable for National Accounts and Bulk Sales and Operations. Mr. Petersohn was straight accountable for developing and supporting a few purchase programs that consist of 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 manager and mind for the company Intelligence unit of MCT which gives competitive cleverness, functional audits, and actionable information insights to help make MCT customers more profitable.

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

During this period we observed the following data:

  • The treasury that is 10-year expanded 45 bps causing a decline in loan rates
  • The FNMA 4.0 voucher TBA price decreased from 104.630 to 102.010
  • The initial lock price for Q1 and Q2 was on average 50 bps less compared to Q4 2017 for MCT clients
    • Why originators that are were in competition started to secure borrowers at reduced prices to obtain the offer, consequently reducing the prices

Motorists of Margin Compression

Once we are assisting to handle our consumers’ hedging and profitability, we felt it required to explain why TBA rates dropped quicker than anticipated. The driver that is main of compression is the fact that need for Mortgage Backed Securities (MBS) has fallen somewhat.

This fall in MBS demand has two primary motorists, the very first of which can be the federal reserve stability sheet runoff. Up to the termination of just last year, the Federal Reserve ended up being a huge customer of MBS in 2007 and 2008 to aid us escape the recession. Now they truly are not any longer purchasing that numerous and they’re permitting their stability sheet runoff about 20 billion yearly. This will be leading an oversupply and too little interest in MBS’s.

The next motorist associated with fall in MBS need is really a flattening yield bend (the spread between 2yr and 10 yr yields narrowed). The aim of big purchasers of MBS’s, aside from the Federal Reserve, will be generate income 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 take a position somewhere else.

Measuring & Managing Margin Compression

Financial Services entrepreneur and indigenous Californian Mark Wilson is a home loan banking CPA additionally the founder of CWDL, CPAs, moms and dad business of Mortgage Banking CPA, a quickly growing audit, income tax, and company advisory company. Home loan Banking CPA is the consulting supply of CWDL CPA, which gives solutions to little separate mortgage bankers most of the way as much as big organizations. CWDL provides assurance, taxation, and business advisory solutions to business owners, non-profits entities, people, school districts, universities and governments that are local. Their solutions consist of:

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

Call us to find out more about CWDL CPAs

Check out methods that Mortgage Banking CPAs has used in combination with consumers to deal with the associated topics of margin compression and LO commissions.