As your trusted capital areas partner, we attempt to provide relevant solutions for headache-inducing problems – such as for example finishing tiresome and handbook calculations for the loan officers’ (LO) commissions.
Margin compression is a typical subject recently, with LO commissions being a certain challenge we shall reference in this essay.
In this webinar recap, we shall summarize the talks of our panelists whom explain: two motorists of margin compression available in the market today, why LO payment management things for keepin constantly your business lucrative, and just how to get rid of inefficiencies in determining LO commissions by leveraging a technology solution.
We have been excited to provide for you this real time webinar recording, accompanied by a thorough summary of this subjects talked about!
Loan Officer Commissions – Margins & Management Webinar
In this nationwide webinar, we invited our specialists into the field to recommend recommendations and provide a powerful pc pc software solution for managing or transitioning loan officer’s commissions.
Develop you may enjoy viewing the event that is full. Additionally readily available for watching may be the presentation slide deck that is full. To get more information about the speakers and summaries of the conversation points please keep reading below inside our synopsis following this video that is webinar.
In this movie webinar you shall understand:
- Context and customer data on margin compression from MCT
- Just just How LO commission 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 webinar that is national occurred twice in July 2018, the speakers talked about market styles, recommended recommendations and reviewed a powerful solution for handling or transitioning LO commissions.
This webinar showcased the panelists that are following
- Bill Petersohn, MCT
- Mr. Petersohn started the webinar by explaining the sources of 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 payment to boost profitability.
- Michael Lewis and Aliyah Nurani, ATI
- Michael and Aliyah shut the webinar by showing to your attendees just exactly exactly how time that is unnecessary on LO commission administration could be paid off 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 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 effort 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 offers competitive intelligence, functional audits, and actionable data insights in order to make 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 following statistics:
- The 10-year treasury yield expanded 45 bps resulting in a reduction in loan prices
- The FNMA 4.0 voucher TBA price decreased from 104.630 to 102.010
- For MCT consumers, the original lock cost for Q1 and Q2 had been an average of 50 bps less compared to Q4 2017
- Why? Originators that had been in competition started to secure borrowers at lower prices to obtain the offer, consequently reducing the rates.
Motorists of Margin Compression
Even as we are helping handle our consumers’ hedging and profitability, we felt it essential to explain why TBA pricing dropped quicker than anticipated. The primary motorist with this compression is the fact that the interest in Mortgage Backed Securities (MBS) has fallen somewhat.
This drop in MBS demand has two primary motorists, the initial of which can be the federal reserve stability sheet runoff. 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 these are generally not any longer purchasing that numerous and are letting their stability sheet runoff about 20 billion annually. This will be leading an oversupply and too little interest in MBS’s.
The 2nd motorist associated with the drop in MBS need is a flattening yield bend (the spread between 2yr and 10 yr yields narrowed). The purpose of big purchasers of MBS’s, aside from the Federal Reserve, is always to earn money in the spread of great interest rates. Now that that spread is narrowing, MBS’s are less attractive of a good investment, causing banking institutions, REITs, and cash managers to get somewhere else.
Measuring & Managing Margin Compression
Financial Services entrepreneur and indigenous Californian Mark Wilson is a home loan banking CPA plus the creator of CWDL, CPAs, moms and dad business of Mortgage Banking CPA, a quickly growing review, income tax, and company advisory company. Home loan Banking CPA is the consulting arm of CWDL CPA, which offers solutions to little mortgage that is independent 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 consist of:
- Assurance Services – AUDITS, RATINGS, COMPILATIONS
- Tax & Advisory Solutions – PLANNING & PREPARATION
- Company Advisory – FINANCIAL MANAGEMENT AND HELP
- Fraud Investigations & Forensic Audits – EXAMINATIONS, AGREED UPON PROCEDURES
E mail us for more information on CWDL CPAs
Below are a few methods that Mortgage Banking CPAs has combined with customers to handle the related topics of margin compression and LO commissions.