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Loan Officer Commissions: Margins & Management (Webinar Recap)

Loan Officer Commissions: Margins & Management (Webinar Recap)

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

Margin compression is a typical topic recently, 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 get rid of inefficiencies in determining LO commissions by leveraging a technology solution.

Our company is excited to provide to you this webinar that is live, followed closely by a comprehensive summary regarding the subjects talked about!

Loan Officer Commissions – Margins & Management Webinar

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

Develop you can expect to enjoy viewing the complete event. Additionally readily available for watching could be the presentation slide deck that is full. To get 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 read about:

  • Context and customer data on margin compression from MCT
  • Exactly just How LO payment calculations are highly relevant to your company’ profitability
  • Simple tips to leverage the E-COM software tool 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 trends, recommended recommendations and reviewed a successful 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 compression that is margin business profitability. Best had been their tips for handling loan officer payment to boost profitability.
  • Michael Lewis and Aliyah Nurani, ATI
    • Michael and Aliyah shut the webinar by showing into the attendees just exactly exactly how unneeded time invested on LO payment administration can be reduced dramatically with an application solution called E-COM.

MCT Margins that is shrinking Context Customer Statistics

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

Mr. Petersohn is really a previous director of gmac Bank within the Bulk Acquisition Group where he had been in charge of National Accounts and Bulk Sales and Operations. Mr. Petersohn happens to be straight in charge of developing and supporting several 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 regarding the company Intelligence unit of MCT which gives competitive cleverness, functional audits, and actionable information insights to help make MCT consumers 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 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 had been in competition begun to secure borrowers at reduced prices getting the offer, therefore decreasing the rates.

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 faster than anticipated. The driver that is main of compression is the fact that interest in Mortgage Backed Securities (MBS) has fallen considerably.

This fall in MBS cash america pawn federal way wa need has two primary drivers, the initial of that will be the reserve balance sheet runoff that is federal. Up to the conclusion of this past year, the Federal Reserve ended up being a large customer of MBS in 2007 and 2008 to simply help us get free from the recession. Now they truly are not any longer purchasing that numerous and they’re permitting their stability sheet runoff about 20 billion yearly. That is leading an oversupply and deficiencies in interest in MBS’s.

The next motorist regarding the fall 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, aside from the Federal Reserve, would be to generate income from 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 plus the founder of CWDL, CPAs, parent business of Mortgage Banking CPA, a quickly growing review, taxation, and company advisory company. Home loan Banking CPA is the consulting arm of CWDL CPA, which gives solutions to tiny separate home loan bankers most 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 governments that are local. Their solutions Include:

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

E mail us for more information about CWDL CPAs

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