As your trusted capital areas partner, we attempt to provide solutions that are applicable headache-inducing problems – such as for instance 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’ll reference in this essay.
In this webinar recap, we shall summarize the conversations of y our panelists who explain: two drivers of margin compression available in the market today, why LO payment administration things for keepin constantly your company lucrative, and exactly how to eliminate inefficiencies in determining LO commissions by leveraging a technology solution.
We have been excited to provide to you this real time webinar recording, accompanied by a comprehensive summary regarding the subjects talked about!
Loan Officer Commissions – Margins & Management Webinar
In this webinar that is national we invited our professionals within the industry to recommend guidelines and provide a highly effective pc computer computer software solution for managing or transitioning loan officer’s commissions.
Develop you can expect to enjoy viewing the complete occasion. Additionally designed for watching could be the complete presentation slip deck. For lots more information about the speakers and summaries of these conversation points please continue reading below within 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 How LO payment calculations are highly relevant to your online business’ profitability
- Simple tips to leverage the E-COM software program to:
- Automate payment calculations without spreadsheets or calculations
- Documenting your commissions’ workflow for audits
- Utilizing commissions data for top-level performance evaluations
Summary – LO Commissions: Margins & Management Webinar
In this nationwide webinar that occurred 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 after panelists:
- Bill Petersohn, MCT
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- 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 settlement to improve profitability.
- Michael Lewis and Aliyah Nurani, ATI
- Michael and Aliyah closed the webinar by showing to your attendees exactly exactly how time that is unnecessary on LO commission administration could be paid down somewhat 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 really a director that is former of 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 a few purchase programs that include 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 for the company Intelligence unit of MCT which gives competitive cleverness, functional audits, and actionable information insights to help make 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 following data:
- The 10-year treasury yield expanded 45 bps resulting in a decline in loan rates
- 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 ended up being an average of 50 bps less compared to Q4 2017
- Why originators that are had been in competition started to secure borrowers at reduced prices to obtain the offer, 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 motorist for this compression is the fact that need for Mortgage Backed Securities (MBS) has fallen somewhat.
This fall in MBS demand has two primary drivers, the very first of that is 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 purchasing that many and they’re letting their stability sheet runoff about 20 billion yearly. This really is leading an oversupply and deficiencies in need for MBS’s.
The next motorist of the fall in MBS need is a flattening yield curve (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 generate income regarding 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 a home loan banking CPA in addition to creator of CWDL, CPAs, moms and dad business of Mortgage Banking CPA, a quickly growing review, taxation, and company advisory company. Home loan Banking CPA is the consulting supply of CWDL CPA, which supplies services to little separate mortgage bankers most of the way as much as big organizations. CWDL provides assurance, taxation, and company advisory solutions to business owners, non-profits entities, people, college districts, universities and regional governments. Their solutions consist of:
- Assurance Services – AUDITS, REVIEWS, COMPILATIONS
- Tax & Advisory Services – PREPARING & PREPARATION
- Company Advisory – FINANCIAL MANAGEMENT AND HELP
- Fraud Investigations & Forensic Audits – EXAMINATIONS, AGREED UPON PROCEDURES
Call us to find out more about CWDL CPAs
Here are a few methods that Mortgage Banking CPAs has combined with customers to deal with the related topics of margin compression and LO commissions.