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TMC lender members saw relief this month as applications, production, efficiency, and salaries all spiked upward. Additionally, the network saw fees, costs per closed loan and app to clear to close all average downward.
Closed loan units increased by 23% in February when compared to the month prior. Within that, lenders saw closed purchase loans increase and refinances dropped to a record low month over month. Refinances were 11% of all closings in February. Here's the refinance share we've seen in TMC Benchmark through 2022: January 2022: 39% February 2022: 37% March 2022: 29% April 2022: 24% May 2022: 16% June 2022: 14% July 2022: 13% August 2022: 13% September 2022: 13% October 2022: 13% November 2022: 13% December 2022: 12% January 2023: 13% February 2023: 11% The % of conventional closings also remained flat again in February at 66% (units). Historically, conventional loans have represented 75-76% of all closed loan units these past seven years. Government loan closings remained at elevated levels, coming in at 28% of all closings this month, far above the 18-20% ranges we’ve historically seen in TMC Benchmark. New applications increased by 21% in February from the previous month. Conventional loans remained flat at 62% of new app share. Operational efficiency increased for all categories in February. The number of closed loan units closed per full-time processor increased to 6.5, and closed loan units per full-time closer increased to 20.6 in February from 17 in January. Closed loan units per full-time underwriter rose to 16 in February from 14 in January. The average loan originator closed 2.3 units in February, a bump from 1.9 in January. LO comp came in at an average of 89.6 bps, up 2.6 basis points (bp) from last month's 87 total. Average annual compensation paid to operational staff increased month-over-month, with average annual comp paid to FTE processors at $57,699 this month. Underwriter annual comp lowered slightly to $84,762. Average annual comp paid to closers rose once again to $55,426. The average "app date to clear to close date" increased to 34.5 this month. Let's look at how this number trended throughout the course of 2021 and 2022: January '21 - 47.9 February '21 - 43.1 March '21 - 42.8 April '21 - 45.7 May '21 - 43.8 June '21 - 41.8 July '21 - 43.2 August '21 - 42.5 September '21 - 42.3 October '21 - 42.6 November '21 - 41.0 December '21 - 34.0 --- January '22 - 40.1 February '22 - 39.6 March '22 - 39.6 April '22 - 39.6 May ’22 – 42.3 June '22 – 39.7 July '22 – 39.2 August ’22 – 38.45 September ’22 – 38.93 October ’22 – 37.07 November ’22 – 40.7 December ’22 – 36.97 --- January ’23 – 38.33 February ’23 – 34.5 The average cost per closed loan unit our members paid for their loan origination system (LOS) increased in February to $230 from $224 the previous month. The average cost per closed loan unit for our members' point-of-sale (POS) system dropped $9 to $83.4 in February and dropped 1 bps to $96 for their CRM. Average non-third-party lender fees for conventional loans lowered to $1,190 in February compared to $1,246 the previous month. Government lender fees also reduced from $1,253 to $1,111 in this most recent month. 59% of this month's participants in TMC Benchmark were depositories, and 41% were IMBs. 36% originate under $500M a year in annual volume, 22% originate between $500M-$1B, and 41% originate over $1 billion per year in annual production.
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Maxwell Q1 2023 Mortgage Lending Report Fannie Mae Appraisal Archive featuring March 2023 Updates Optimal Blue, a division of Black Knight: Weekly Market Update - 3/29/23 rd Maxwell Ranked #15 in Business Insiders' Top PropTech Start Ups in 2023 Total Expert Announces Updates to Total Expert on Salesforce AppExchange, the World's Leading Enterprise Cloud Marketplace Candor, FinLocker, OptiFunder Win Progress in Lending Innovations Award Thought Leadership Certified Credit: Reducing Loan Origination Costs Despite Rising Credit Reporting Fees Curinos Senior Consumer Lending Market Analyst, Ken Flaherty: Is Fintech A Threat to Home Equity Business As We Know It? Personnel Announcements Dovenmuehle Adds Anna Krogh as VP of Business Development to Expand Mortgage Subservicing Footprint Cenlar FSB Names Rene Gonzales as Chief Technology Officer Total Expert Welcomes Tony Barbone as New CRO Garris Horn Expands Firm With Addition of Renowned Litigation Attorney, James Brody, Esq. Media (Video) SimpleNexus Overview: Streamlining Homeownership Lodestar Lending Leaders Podcast: Viewing Challenges as Opportunities featuring SimpleNexus CTO, Lori Brewer Blogs ActiveComply: Remote Control - 3 Reasons Why You Should Take Your Office Inspections Online More Than MI, See All the Value Adds Partnering with MGIC Provides Your Lending Operation Arch MI: How to Build Strong Realtor Partnerships That Will Drive Success in 2023 New Optimal Blue White Paper: Pool Solver - Bringing Time & Basis Points to the Secondary Market MGIC's ReadyNest Blog, featuring Vance Edwards: Should You Buy a Home During Uncertain Times? OptiFunder: Independent Mortgage Originators Embrace Warehouse Management Technology to Improve Profitability, Operations 3/30/2023 HOUSINGWIRE'S 2023 TECH100 LIST IN REAL ESTATE & MORTGAGE HIGHLIGHTS 17 TMC PREFERRED PARTNER COMPANIESRead Now HousingWire just announced their 2023 TECH100 List which highlights innovative Real Estate and Mortgage companies from this year. For the 11th year in a row, HousingWire features multiple corporations that are bringing revolutionary technology to improve our industry and its operations. Whether it’s automating tasks or changing a step in the loan origination process, we are lucky to have 17 of our TMC Preferred Partners showcased in this list!
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ICYMI: Pending FTC Approval, Black Knight & ICE Announce Agreement to Sell Empower LOS to Constellation Mortgage Solutions Fannie Mae Updates Selling Guide to 'Modernize' Appraisal Options Total Expert Named to Inc. 5000's Fastest Growing Midwest Companies for 4th Consecutive Year PHOENIX Market Snapshot - January 2023 Optimal Blue, a division of Black Knight: Weekly Market Update - 3/15/23 Download MQMR's 2023 Fair Lending Compliance Whitepaper Black Knight Originations Market Monitor Report: Loan Demand Dips & Borrowers Shift Toward Jumbos, ARMs as Rate Rise Resumes Thought Leadership ICYMI: Vice Capital Markets Principal, Chris Bennett: Hedging & Trading - Tips & Tricks From Pros on Maximizing Profits in a Volatile Markets TrustEngine Chief Innovation Officer, Dave Savage: What is a BIP? The M Report: Managing AI & ML in the Mortgage Space Arch MI PolicyCast: Risks & Rewards of Small IMBs Personnel Announcements Cenlar FSB Appoints Pete Johnson Vice President Special Products in Loan Operations Media (Video) Black Knight VP, Andy Walden on CNBC's The Exchange: Housing Market's Slow Bumpy Return to Normalcy (Podcast) Lykken on Lending 3/14: Customer Intelligence featuring Total Expert's Joe Welu (Podcast) Chrisman Commentary, featuring MGIC's Vance Edwards on Mortgage Insurance Misconceptions (On-Demand Webinar) Black Knight Mortgage Monitor January 2023 Report - Impact on the Mortgage Market (Podcast) Total Expert's Expert Insights, featuring Assurance Financial's Katherine Campbell: Raising Industry Standards Using Tech & Innovation Blogs Arch MI HaMMR Digest: 3/13 - Panic Flips the Script Curinos: Mortgage Hot Topics - 3/10/23 Snapdocs: Quantifying the Value of eClose MQMR Weekly FAQ: Fannie Mae's Quality Control Audit Requirements Docutech Checklist: Is Your eClose Solution Working As Hard As You? Experience.com: 5 Things Every Mortgage Marketing Professional Must Include in Their 2023 Strategy ActiveComply's Remote Office Inspection Offering CondoTek: Fannie Mae Unavailable List Removal New Research Report from TRUE: The Continuously Improving ROI of Trusted Data Arch MI Capital Commentary: On The Road Asking Local Experts About Limited Housing Supply Surefire, a Black Knight company Quick Guide: Mortgage Marketing Essentials - CRM Docutech Whitepaper: Maximizing the Use of Your Document Generation Vendor To Reduce Costs & Create Efficiency Black Knight Mortgage Monitor January 2023 Report Total Expert Activity Alerts: Know What Your Customers Need in Real-Time ICYMI: MQMR Weekly FAQ: 2023 State Privacy Laws & Exemptions Events LinkedIn Live: FinTech Friday’s: Finfluencer Strategies to Build Your Homebuyer Database, hosted by FinLocker’s Brian Vieaux California MBA webinar: 3/23 @ 2PM ET | 11AM PT: Optimizing Loan Quality & Navigating the Next Wave of Buybacks, featuring Johnston | Thomas's, James Brody, Esq., & MQMR's Scott Weintraub TMC lender members saw a welcomed increase in applications to start off 2023. Alternatively, the network saw closed loan production drop fairly significantly compared to last month.
New applications increased by 19% in January from the previous month as rates dipped down during the month, pushing home purchasers off the fence. Conventional loans remained flat at 65% of new app share. It will be interesting to see how the recently announced reduced FHA mortgage insurance premiums impact the mix of new business we see going forward. Closed loan units decreased by 38% in January when compared to the month prior. Within that, lenders saw closed purchase loans and refinances continue to remain flat month over month. Refinances went back to 13% of all closings in January. Here's the refinance share we've seen in TMC Benchmark since the beginning of 2022: January 2022: 39% February 2022: 37% March 2022: 29% April 2022: 24% May 2022: 16% June 2022: 14% July 2022: 13% August 2022: 13% September 2022: 13% October 2022: 13% November 2022: 13% December 2022: 12% January 2023: 13% The % of conventional closings also remained flat again in January at 64% (units). Historically, conventional loans have represented 75-76% of all closed loan units these past six years. Government loan closings remained at elevated levels, coming in at 28% of all closings this month, far above the 18-20% ranges we’ve historically seen in TMC Benchmark. Operational efficiency declined for all categories in January. The number of closed loan units closed per full-time processor lowered slightly to 5.37, and closed loan units per full-time closer lowered to 17 in January from 19 in December. Closed loan units per full-time underwriter lowered to 14 in January from 16 in December. The average loan originator closed 1.9 units in January, a drop from 2.2 in December. LO comp came in at an average of 87 bps, down 10.9 basis points (bps) from last month's 97.9 total. Average annual compensation paid to operational staff increased month-over-month, with average annual comp paid to FTE processors at $51,712 this month. Underwriter annual comp lowered slightly to $85,194. Average annual comp paid to closers rose to $54,632. The average "app date to clear to close date" increased to 38.33 this month. Let's look at how this number trended throughout the course of 2021 and 2022: January '21 - 47.9 February '21 - 43.1 March '21 - 42.8 April '21 - 45.7 May '21 - 43.8 June '21 - 41.8 July '21 - 43.2 August '21 - 42.5 September '21 - 42.3 October '21 - 42.6 November '21 - 41.0 December '21 - 34.0 --- January '22 - 40.1 February '22 - 39.6 March '22 - 39.6 April '22 - 39.6 May ’22 – 42.3 June '22 – 39.7 July '22 – 39.2 August ’22 – 38.45 September ’22 – 38.93 October ’22 – 37.07 November ’22 – 40.7 December ’22 – 36.97 --- January ’23 – 38.33 The average cost per closed loan unit our members paid for their loan origination system (LOS) increased in January to $224 from $173 the previous month. The average cost per closed loan unit for our members' point-of-sale (POS) system climbed $20.91 to $92.46 in January and rose 2 bps to $97 for their CRM. Average non-third-party lender fees for conventional loans crept up slightly once again to $1,246 in January compared to $1,225 the previous month. Government lender fees rose slightly from $1,226 to $1,253 in this most recent month. 58% of this month's participants in TMC Benchmark were depositories, and 42% were IMBs. 38% originate under $500M a year in annual volume, 25% originate between $500M-$1B, and 37% originate over $1 billion per year in annual production. |
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