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Loan Officer Commissions: Margins & Management (Webinar Recap)

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Loan Officer Commissions: Margins & Management (Webinar Recap)

As your trusted capital areas partner, we attempt 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 happens to be a topic that is common, with LO commissions being a certain challenge we are going to reference in this specific article.

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 https://speedyloan.net/reviews/spotloan administration issues for keepin constantly your business lucrative, and exactly how to eliminate inefficiencies in calculating LO commissions by leveraging a technology solution.

Our company is excited to provide for your requirements this real time webinar recording, followed closely by an extensive summary of this subjects talked about!

Loan Officer Commissions – Margins & Management Webinar

In this nationwide webinar, we invited our professionals in the field to recommend guidelines and provide a highly effective computer pc 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 may be the complete presentation slip deck. 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 movie webinar you shall find out about:

  • Context and customer data on margin compression from MCT
  • Exactly just just How LO commission calculations are strongly related 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 webinar that is national happened twice in July 2018, the speakers talked about market styles, recommended recommendations and reviewed a very good solution for handling or transitioning LO commissions.

This webinar showcased the following panelists:

  • 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. 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 towards the attendees exactly just just how unneeded time spent on LO payment administration can be reduced dramatically with a computer software solution called E-COM.

MCT Shrinking Margins Context & Customer Statistics

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

Mr. Petersohn is just a director that is former of 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 accountable for developing and supporting a few purchase 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 manager and mind associated with company Intelligence unit of MCT which offers competitive intelligence, functional audits, and actionable data 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 time period we observed the statistics that are following

  • The treasury that is 10-year expanded 45 bps ultimately causing a reduction in loan prices
  • 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 had been in competition started to secure borrowers at reduced prices to have the deal, consequently decreasing 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 interest in Mortgage Backed Securities (MBS) has fallen somewhat.

This fall in MBS demand has two primary motorists, the initial of which can 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 they have been not any longer purchasing that lots of and are permitting their balance sheet runoff about 20 billion yearly. It is leading an oversupply and deficiencies in interest in MBS’s.

The 2nd motorist for the fall in MBS need is 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, is always to generate income on 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 native Californian Mark Wilson is home financing banking CPA in addition to creator of CWDL, CPAs, moms and dad company of Mortgage Banking CPA, a quickly growing review, income tax, and company advisory firm. Mortgage Banking CPA is the consulting supply of CWDL CPA, which supplies solutions to tiny mortgage that is independent 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 regional governments. Their solutions consist of:

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

Call us for more information about CWDL CPAs

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