As your trusted capital areas partner, we make an effort to provide solutions that are applicable headache-inducing problems – such as for example 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 specific challenge we shall reference in this specific article.
In this webinar recap, we’ll summarize the talks of y our panelists who explain: two motorists of margin compression available in the market today, why LO commission administration things for keepin constantly your business lucrative, and just how to eliminate inefficiencies in determining LO commissions by leveraging a technology solution.
We are excited to provide to you personally this webinar that is live, accompanied by an extensive summary regarding the topics talked about!
Loan Officer Commissions – Margins & Management Webinar
In this nationwide webinar, we invited our specialists within the industry to recommend guidelines and provide a highly effective computer software solution for managing or transitioning loan officer’s commissions.
We hope you certainly will enjoy viewing the complete occasion. Additionally designed for watching may be the complete presentation fall deck. To get more information regarding the speakers and summaries of the conversation points please keep reading below inside our synopsis following this video that is webinar.
In this video clip webinar you will read about:
- Context and client data on margin compression from MCT
- Just just exactly How LO payment 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 were held 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 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. Best had been their tips for handling loan officer compensation to improve profitability.
- Michael Lewis and Aliyah Nurani, ATI
- Michael and Aliyah shut the webinar by demonstrating to your attendees exactly exactly exactly how unneeded time invested on LO payment administration are paid down considerably 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 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 directly 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 of this Business Intelligence unit of MCT which supplies competitive cleverness, functional audits, and actionable information insights in order to make MCT consumers more profitable.
At MCT we observed that most of 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 obtain the deal, consequently decreasing 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 primary driver of the compression is the fact that the interest in Mortgage Backed Securities (MBS) has fallen dramatically.
This fall in MBS demand has two primary motorists, the initial of that is the federal book 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 they’re permitting their stability sheet runoff about 20 billion annually. It is leading an oversupply and deficiencies in interest in MBS’s.
The next motorist regarding the drop 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, will be earn money in 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 elsewhere.
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 business of Mortgage Banking CPA, a quickly growing review, income tax, and company firm that is advisory. Home loan Banking CPA is the consulting arm of CWDL CPA, which supplies solutions to tiny separate mortgage bankers all 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 governments that are local. Their solutions consist of:
- Assurance Services – AUDITS, RATINGS, COMPILATIONS
- Tax & Advisory Solutions – PREPARING & PREPARATION
- Company Advisory – FINANCIAL MANAGEMENT AND HELP
- Fraud Investigations & Forensic Audits – EXAMINATIONS, AGREED UPON PROCEDURES
Contact us to find out more about CWDL CPAs
Below are a few methods that Mortgage Banking CPAs has used in combination with consumers to handle the associated topics of margin compression and LO commissions.