Loan Officer Commissions: Margins & Management (Webinar Recap)

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

Margin compression is a topic that is common, with LO commissions being a specific challenge we shall reference in this essay.

In this webinar recap, we are going to summarize the conversations of 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 get rid of inefficiencies in determining LO commissions by leveraging a technology solution.

We have been excited to provide to you personally this webinar that is live, accompanied by an extensive summary regarding the subjects talked about!

Loan Officer Commissions – Margins & Management Webinar

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

Develop you may enjoy viewing the event that is full. Also designed for watching may be the presentation slide deck that is full. To get more information about the speakers and summaries of these conversation points please keep reading below within our synopsis following this webinar video clip.

In this video clip webinar you will read about:

  • Context and client statistics on margin compression from MCT
  • Just exactly How LO payment calculations are highly relevant to your online business’ profitability
  • How exactly to leverage the E-COM software 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 nationwide webinar that 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 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 payment to improve 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 payment administration may be paid down considerably with a computer software solution called E-COM.

MCT Shrinking Margins Context & Client Statistics

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

Mr. Petersohn is just 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 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 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 of this company Intelligence unit of MCT which offers competitive cleverness, functional audits, and actionable information insights to produce MCT customers more profitable.

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

During this period we observed the statistics that are following

  • The treasury that is 10-year expanded 45 bps ultimately causing a reduction in loan rates
  • 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 were in competition started to secure borrowers at reduced rates to obtain the deal, consequently reducing 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 main driver for this compression is the fact that interest in Mortgage Backed Securities (MBS) has fallen dramatically.

This fall in MBS need has two primary motorists, the very first of that will be the reserve balance sheet runoff that is federal. Up to the termination of a year ago, the Federal Reserve ended up being a huge customer of MBS in 2007 and 2008 to simply help us get free from the recession. Now these are generally not purchasing that lots of plus they are letting their stability sheet runoff about 20 billion yearly. This can be leading an oversupply and too little interest in MBS’s.

The 2nd motorist 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 buyers of MBS’s, aside from the Federal Reserve, would be to earn money in the spread of great interest prices. Now 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 home financing banking CPA plus 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 tiny mortgage that is independent most of the way as much as large organizations. CWDL provides assurance, taxation, and company advisory solutions to business owners, non-profits entities, people, college 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

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