As your trusted capital areas partner, we attempt to present solutions that are applicable headache-inducing problems – such as for example finishing tiresome and handbook calculations for the loan officers’ (LO) commissions.
Margin compression was a topic that is common, with LO commissions being a certain challenge we shall reference in this essay.
In this webinar recap, we shall summarize the conversations of our panelists who explain: two motorists of margin compression on the market today, why LO payment administration things for keepin constantly your company lucrative, and just how to get rid of inefficiencies in determining LO commissions by leveraging a technology solution.
Our company is excited presenting to you this webinar that is live, accompanied by a comprehensive summary regarding the subjects 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 pc computer software solution for managing or transitioning loan officer’s commissions.
We hope you can expect to enjoy viewing the event that is full. Additionally designed for viewing could be the presentation slide deck that is full. For lots more information regarding the speakers and summaries of these conversation points please continue reading below inside our synopsis after this webinar video clip.
In this movie webinar you will find out about: ace cash express near me
- Context and customer data on margin compression from MCT
- Exactly 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 information for top-level performance evaluations
Summary – LO Commissions: Margins & Management Webinar
In this nationwide webinar that were held twice in July 2018, the speakers talked about market styles, recommended recommendations and reviewed a highly effective solution for handling or transitioning LO commissions.
This webinar showcased the after panelists:
- Bill Petersohn, MCT
- Mr. Petersohn started the webinar by explaining the sources of 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. Best were their strategies for handling loan officer settlement to boost profitability.
- Michael Lewis and Aliyah Nurani, ATI
- Michael and Aliyah closed the webinar by showing into the attendees just just how unneeded time invested 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, Handling Director & Company Intel. Lead
Mr. Petersohn is a director that is former of Bank when you look at the Bulk Acquisition Group where he had been in charge of 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 currently handling manager and mind associated with company 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 all of our clients experienced margin compression into Q1 and Q2 of 2018.
During this time period we observed the statistics that are following
- The 10-year treasury yield grew 45 bps ultimately causing a reduction 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 had been 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 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 need has two primary drivers, initial 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 these are typically not any longer purchasing that lots of and they’re permitting their stability sheet runoff about 20 billion yearly. This might be leading an oversupply and deficiencies in interest in MBS’s.
The next motorist associated with fall in MBS need is a yield that is flattening (the spread between 2yr and 10 yr yields narrowed). The purpose of big buyers of MBS’s, aside from the Federal Reserve, is always to earn money from the spread of interest prices. Now that that spread is narrowing, MBS’s are less attractive of a good investment, causing banking institutions, REITs, and cash managers to take a position somewhere else.
Measuring & Managing Margin Compression
Financial Services entrepreneur and indigenous Californian Mark Wilson is a home loan banking CPA and also the creator of CWDL, CPAs, parent business of Mortgage Banking CPA, a quickly growing review, income tax, and company firm that is advisory. Home loan Banking CPA is the consulting supply of CWDL CPA, which offers solutions to little separate home loan bankers all of the way as much as big organizations. CWDL provides assurance, income tax, and company advisory services to business owners, non-profits entities, people, college districts, colleges and regional governments. 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
Call us for more information about CWDL CPAs
Below are a few techniques that Mortgage Banking CPAs has used in combination with consumers to deal with the associated topics of margin compression and LO commissions.