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12/23/2022

TMC BENCHMARK NOVEMBER DATA: Salaries Increase As Costs For Systems Decrease.

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TMC’s lender members saw cost per closed loans decrease and salaries go up in November. Applications continue to decrease slightly, and with-it falling production and efficiency as we head into the winter months.
Closed loan units were down 14% in November when compared to the month prior. Within that, lenders saw closed purchase loans and refinances continue to remain flat month over month. Refinances remained at 13% of all closings in November for a fifth month in a row. 
  
Here's the refinance share we've seen in TMC Benchmark over the last six months: 
  
January 2022: 39% 
February 2022: 37% 
March 2022: 29% 
April 2022: 24% 
May 2022: 16% 
June 2022: 14%
July 2022: 13%
August: 13%
September: 13%
October: 13%
November: 13%
  
The % of conventional closings also remained flat again in November at 65% (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 27% of all closings this month, far above the 18-20% ranges we’ve historically seen in TMC Benchmark. 
  
New applications dropped by 13% in November from the previous month. Conventional loans remained flat at 62% of new app share.
  
November brought operational efficiency down for closers and remained relatively flat for everyone else. The number of closed loan units closed per full-time processor were down to 5.94, and closed loan units per full-time closer increased to 17.93 in November from 20.32 in October. Closed loan units per full-time underwriter decreased to 16 from 18.33 in October. The average loan originator closed 2.26 units in November, a drop from 2.49 in October. LO comp came in at an average of 91.7 bps, down 3 basis point (bp) from last month's 88.5 total. 
  
Average annual compensation paid to operational staff increased month-over-month, with average annual comp paid to FTE processors at $51,250 this month. Underwriter annual comp also climbed to $85,604. Average annual comp paid to closers rose to $53,444.
  
The average "app date to clear to close date" decreased to 40.7 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
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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

The average cost per closed loan unit our members paid for their loan origination system (LOS) decreased in November to $153 from $167 the previous month. The average cost per closed loan unit for our members' point-of-sale (POS) system dropped $1 to $65.27 in November and dropped 3 bps to $86 for their CRM. 
  
Average non-third-party lender fees for conventional loans remained flat once again $1,191 in November compared to $1,172 the previous month. Government lender fees rose from $1,200 to $1,164 in this most recent month. 
  
52% of this month's participants in TMC Benchmark were depositories, and 48% were IMBs. 34% originate under $500M a year in annual volume, 29% originate between $500M-$1B, and 37% originate over $1 billion per year in annual production. 

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