As your trusted capital areas partner, we attempt to provide solutions that are applicable headache-inducing problems – such as for example 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 shall reference in this essay.
In this webinar recap, we shall summarize the conversations of our panelists whom explain: two motorists of margin compression on the market today, why LO payment administration issues for keeping your company lucrative, and exactly how to eliminate inefficiencies in determining LO commissions by leveraging a technology solution.
Our company is excited presenting for your requirements this webinar that is live, accompanied by an extensive summary regarding the subjects talked about!
Loan Officer Commissions – Margins & Management Webinar
In this national webinar, we invited our specialists within the industry to recommend guidelines and provide a highly effective computer pc pc software solution for managing or transitioning loan officer’s commissions.
Develop you are going to enjoy viewing the complete event. Additionally readily available for watching is the complete presentation slide deck. For lots more information about the speakers and summaries of these conversation points please keep reading below inside our synopsis following this video that is webinar.
In this video clip webinar you shall find out about:
- Context and customer data on margin compression from MCT
- Just just exactly How LO payment calculations are highly relevant to your online business’ profitability
- Just how to leverage the E-COM software program to:
- Automate payment calculations without spreadsheets or calculations
- Documenting your commissions’ workflow for audits
- Using commissions data 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 best practices 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 market activities.
- 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 just how time that is unnecessary on LO payment administration can be reduced dramatically with a pc 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 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 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 division of MCT which gives 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 grew 45 bps ultimately causing a decrease 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 ace cash express boulder co started to secure borrowers at reduced prices to obtain the deal, consequently reducing the prices.
Motorists of Margin Compression
Once we are assisting to handle our consumers’ hedging and profitability, we felt it essential to explain why TBA rates dropped faster than anticipated. The primary driver of the compression is the fact that interest in Mortgage Backed Securities (MBS) has fallen considerably.
This fall in MBS need has two primary motorists, the very first of that will 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 plus they are permitting their stability sheet runoff about 20 billion yearly. This really is leading an oversupply and too little interest in MBS’s.
The next motorist for the fall in MBS need is a yield that is flattening (the spread between 2yr and 10 yr yields narrowed). The purpose of big purchasers of MBS’s, aside from the Federal Reserve, is 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 spend somewhere else.
Measuring & Managing Margin Compression
Financial Services entrepreneur and indigenous Californian Mark Wilson is a home loan banking CPA as well as the creator of CWDL, CPAs, moms and dad business of Mortgage Banking CPA, a quickly growing review, taxation, and company firm that is advisory. Home loan Banking CPA is the consulting arm of CWDL CPA, which gives solutions to little mortgage that is independent most of the way as much as big organizations. CWDL provides assurance, tax, and company advisory services to entrepreneurs, 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 to find out more 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.