Top Headlines…
Maxwell Wins 2022 Finovate Award for Best Back-Office / Core-Service Solution
Fannie Mae Economic Indicators Hint at 2023 Recession
Freddie Mac Primary Mortgage Market Summary Indicates Mortgage Rates Hit 14-Year High & 10-Year Treasury Yield Hits 11-Year High
MeridianLink Named to Prestigious IDC FinTech Rankings
Arch MI's HaMMR Digest: Stay Current with Economic & Mortgage Market Trends
Total Expert's Customer Intelligence Wins Innovation Challenge at Digital Mortgage Conference
Black Knight: August Mortgage Delinquencies Near Record Low
Optimal Blue, a division of Black Knight: Weekly Market Update - 9/28/22
​EMM Loans Partners with SimpleNexus to Drive Operational Efficiency and Boost Loan Revenue

Thought Leadership…
Model Match: Sustainability & Opportunity in a Dynamic Market
MGIC Q&A with Danny Velez-Garcia: Connecting the Dots Between DEI, Strategic Innovation & the Value of Homeownership
Arch MI: Mortgage Lending Growth is Increasingly Linked to Hispanic Homebuyers
Black Knight: Never Jump Blindly - Opportunity & Risk in 2022's Home Equity Market
MBA Interview with MGIC President & COO, Sal Miosi: MBA Pledge For All 
MBA Interview with Boston National Title President, Nathan Bossers: A Better Title Solution for Increased Default Volume

Personnel Announcements…
Fannie Mae Names Priscilla Almodovar as New CEO

Blog…
MQMR Weekly FAQ: Remote Work Best Practices
MeridianLink: Personalized Banking - What Consumers Want During Challenging Times
Download FinLocker's: Managing Your Tech Stack to Align with Your Changing Business Needs
Certified Credit: The 5 C's of Credit & How They Impact Your Score
ActiveComply: 5 Social Media Ideas for Banks to Drive Customer Acquisition & Retention
How Capacity Uses Capacity: Featuring the Client Success Team of...Capacity
Certified Credit: Talk Data to Me Update - Growing Your Mortgage Lending Business in a Purchase Market
Curinos Perspective: Fed Rate Hike: How High Will They Go?
Maxwell: 3 Tips for Lenders Looking to Enter the Non-QM Lending Space
LO Hub, powered by MGIC: Infographic - Gen Z is on the Move!
Optimal Blue, a division of Black Knight: New eBook - 5 Steps for Improving Secondary Marketing Profitability

Media…
(Video) Freddie Mac: Appraisal Modernization A Spectrum of Collateral Valuation Options
(Video) Black Knight's Andy Walden Discusses Falling Home Prices on CNBC's The Exchange
(Podcast) NMP's The Principal Pocast, featuring FinLocker's Prabhakar Bhogaraju: Helping Millennials, Gen Z Achieve the American Dream
(Podcast) Chrisman Commentary featuring SimpleNexus's Lori Brewer & Shane Westra: Ways for Lenders to Improve ROI
(Video) Vice Capital Markets Chris Bennett: Becoming Unhinged & the Battle of Four Percent

Events…
(Webinar) 10/13 @ 2 pm ET: Total Expert & Prosperity Mortgage: Seal the Deal - Keep Loans from Falling Through the Cracks

The Mortgage Collaborative's national network of best-in-class mortgage lending institution members that submit data to TMC Benchmark saw an increase in production and application units in August. This, paired with the lower costs for your POS and LOS systems, provided some needed relief from the 2022 summer slump.

Closed loan units increased by 10% in August compared to the previous month. Within that, lenders saw closed purchase loans and refinances remain flat month over month. Refinances remained at 13% of all closings in August. 
   
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%
   
The % of conventional closings stayed dipped in August to 64% (units). Historically, conventional loans have represented 75-76% of all closed loan units these past six years. On the flip side, government loan closings continued to climb into an all-time high once (by share) of 30% this month. 
   
Also on the rise, new applications increased by 16% in August. On brand this month, conventional loans also went against its trend of 2022 and climbed to 65% of new app share.
   
In August, operational efficiency dipped slightly once again. The number of closed loan units closed per full-time processor remained flat at 8.59, and closed loan units per full-time closer decreased to 23.27 in August from 25.53 in July. Closed loan units per full-time underwriter decreased to 22.74 from 23.07 in July. The average loan originator closed 3.77 units in August, a slight change from 3.82 in July. LO comp came in at an average of 93.4 bps, up 2.8 bps from last month's 90.44 total. 
   
Average annual compensation paid to operational staff was very flat month-over-month, with average annual comp paid to FTE processors decreasing slightly to $51,026 this month. Underwriter annual comp also dipped to $87,194. Average annual comp paid to closers also lowered to $52,623.
   
The average "app date to clear to close date" decreased to 38.45 this month as lenders dealt with staff attrition and pipelines of pretty much nothing but purchase transactions. Let's look at how this number trended throughout the course of 2021 and now into 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

   
The average cost per closed loan unit our members paid for their loan origination system (LOS) lowered in August to $137 from $150 the previous month. The average cost per closed loan unit for our members' point-of-sale (POS) system dropped $4.27 to $60.83 in August and increased by $1.5 at $93 for their CRM. 
   
Average non-third-party lender fees lowered finally on conventional loans, dipping slightly to $1,173 in August from $1,196 the previous month. Government lender fees rose from $1,102 to $1,125 in this most recent month. 
   
54% of this month's participants in TMC Benchmark were depositories, and 46% were IMBs. 36% originate under $500M a year in annual volume, 25% originate between $500M-$1B, and 39% originate over $1 billion per year in annual production. 

Top Headlines
Black Knight: Mortgage Lending Hit 4-Year Low in August with Rate Lock Volume Down 57% YOY
Dart Appraisal Acquires Appraisal Management Company MaxVantage
Optimal Blue, a division of Black Knight: Weekly Market Update - 9/14/22
Mortgage Coach | Sales Boomerang eBook: 2022 Halftime Highlights Report 
Black Knight: July 2022 Mortgage Monitor Report

Thought Leadership
Vice Capital Market's Chris Bennett: Rate-Lock Negotiations Offer a Short-Term Response with Long-Term Consequences 
​iEmergent CEO, Laird Nossuli: Neither Risky or Mysterious, SPCP's are Evidence-Based Lending

Personnel Announcements
Total Expert Appoints Dan Catinella as Chief Lending Officer to Spearhead Mortgage Strategy & Innovation
Rich LaBarca joins Sales Boomerang and Mortgage Coach as Chief Product and Technology Officer
Fannie Mae Hires Anthony Moon as New Chief Risk Officer

Blogs
OptiFunder Case Studies: Optimized Warehouse Allocation Decisions & Automation for Funding Through Loan Sale
Mortgage Coach | Sales Boomerang eBook: Live Happens - Why Life Alerts is Such a Powerful Tool
Maxwell eBook: 5 Essential Functions of High-Performing Point-of-Sale Technology
Triserv Lender Resource Series: Triserv's Philosophy on Working with Appraisers 
MGIC Hispanic Marketing Resources

Media
(Podcast) Curinos Finsights: The Resurgence of Home Equity
(Podcast) Chrisman Commentary featuring OptiFunder's Jon Rutila on Warehouse Management 
(On-Demand Webinar) MGIC: Playbook for Success in Today's Market: 3 Strategies to Use in Today's "New" Mortgage Market
(On-Demand Webinar) Black Knight Mortgage Monitor July 2022 - Impact on the Mortgage Market
(On-Demand Webinar) Today's Evolving Construction Conversation, a Q&A Forum with Built
(On-Demand Webinar) MGIC: The Fight for Referrals - Two Completely Different Ways to Win

Events
(Webinar) 9/22 at 2PM ET Built: Technology-enabled Inspections Reduce Risk in Loan Management   

TMC is excited to welcome Chicago’s own Susan Sher as a keynote during TMC In Chi-Town's September 27th general session. Susan will sit down for a fireside chat alongside Jodi Hall, President at Nationwide Mortgage Bankers, Inc., to answer questions about her time in the White House as former Chief of Staff to First Lady Michelle Obama and White House associate counsel to President Barak Obama.

Susan's career accomplishments indicate her hard work and effectiveness starting in 1974 when she graduated cum laude from Loyola University Law School. Susan went to work for the Chicago firm of Mayer Brown, where she eventually became a partner and the First Female Corporation Counsel for the City of Chicago. After her time with the city, Susan became Vice President for Legal and Governmental Affairs and General Counsel of the University of Chicago Medical Center where she worked for 10 years prior to moving to DC in 2008.

Since 2011, Susan Sher has held the position of Senior Adviser to the President of the University of Chicago, where she still serves as the University Liaison to the Obama Foundation.

She currently serves on a number of boards. She serves as Chair of the Board of Trustees at her Alma Mater, Loyola University Chicago and Presidential Appointment on the Board of the John F Kennedy Center for the Performing Arts, where she chairs the Audit Committee and serves on the Executive Committee. She also sits on the Board of the Partnership for A Healthier America, where she chairs the Trusteeship Committee. Previously, she also served as chair of the University of Chicago Lab Schools and of The Chicago Network.

The TMC Network welcomes her perspective on local Chicago politics and applying her outlook on persevering leadership to the challenges of the mortgage industry today.

​Efficiency, applications, and production declined for The Mortgage Collaborative's national network of best-in-class mortgage lending institution members in July. This month government applications and closings were a bright spot amidst a continued wane in overall volume as we head into the heart of summer.
  
Closed loan production (in units) decreased by 8% month-over-month for the network. While refinances continued to shift downward another 13% in July, lenders saw closed purchase loans decrease by only 2% in July.
 
Here's the closed loan refinance share we've seen in TMC Benchmark over the first seven months of 2022:

January 2022: 39% 
February 2022: 37% 
March 2022: 29% 
April 2022: 24% 
May 2022: 16% 
June 2022: 14%
July 2022: 13%
  
The percentage of conventional closings dropped slightly in July to 66% (units). Historically, conventional loans have represented 75-76% of all closed loan units these past six years. On the flip side, government loan closings came in at an all-time high (by share) for the second month in a row of 27%.
  
Despite new applications falling an additional 11% for the second month in a row, government loans increased again this month at a TMC Benchmark all-time high of 29% of total new app volume. Trending downward in 2022, conventional loans fell to a TMC Benchmark all time low of 55% of new app share. 
  
In July, operational efficiency decreased by about 6% across the board from June's spike. The number of loan units closed per full-time processor increased to 8.54, and loan units per full-time closer reduced from 28.2 in June to 25.5 in July. Closed loan units per full-time underwriter decreased to 23.1 from 25.2 in June. The average loan originator closed 3.8 units in July, decreasing as well after staying steady April-June. Average LO comp came in at an average of 90.4 bps, down 1.8 bps from last month's 92.2 total.
  
Average annual compensation paid to operational staff remained very flat month-over-month, with average annual comp paid to FTE processors increasing slightly to $51,500 this month. Underwriter annual comp remained at $88,000. Average annual comp paid to closers also remained at $53,000.
  
The average "app date to clear to close date" remained flat at 39.2 this month. Lenders dealt with staff attrition and pipelines of pretty much nothing but purchase transactions. Let's look at how this number trended throughout 2021 and into 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
  
Our members' average cost per closed loan unit for their loan origination system (LOS) increased again from $142 to $150. The average cost per closed loan unit for our members' point-of-sale (POS) system increased from $59 to $65 and increased by $3 to $92 for their CRM.
  
In the face of much lower volume and margins, our members continue to increase their non-third-party lender fees. Conventional loans dropped from $1,498 to an average of $1,136, and government loan lender fees lowered slightly from $1,245 to $1,102.
  
52% of this month's participants in TMC Benchmark were depositories, and 48% were IMBs. 38% originate under $500M a year in annual volume, 27% originate between $500M-$1B, and 35% originate over $1 billion per year in annual production.

Rich Swerbinsky
President & COO, The Mortgage Collaborative

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Curinos Senior Consumer Lending Market Analyst, Ken Flaherty: 5 Ways to Benefit from a Home Equity Comeback
​
Blog
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Media
(On Demand Webinar) Black Knight: How to Boost Your Pipeline in Today's Market
(Video) SimpleNexus Overview: Streamlining Homeownership 
Subscribe to the Lykken on Lending Podcast Here!

One of the most anticipated lists of the year is here! The Inc. 5000 2022 edition highlights the most successful companies in America, and what they reveal about the future of business. The site also includes some inspirational stories behind many of the businesses recognized, and how they grew in a time of massive change. Search the full list of American companies here.

Please join us in congratulating the Preferred Partners Lender Members who were recognized within TMC’s network.

Preferred Partners
164 – Maxwell
288 – Xactus
708 – Sales Boomerang
2142 – Total Expert

Lender Members
1048 – CrossCountry Mortgage
1384 – Nationwide Mortgage Bankers
1407 – Kwik Mortgage Corp.
1528 – LoanFlight Lending
1966 – ALCOVA Mortgage
2277 – Sovereign Lending Group
2618 – Broker Solutions (dba as New American Funding)
2774 – Nations Lending Corp.
2824 – Mortgage Financial Services
3437 – AnnieMac Home Mortgage
3790 – Town Square Mortgage
3960 – FBC Mortgage
3962 – OVM Financial
4094 – OneTrust Home Loans
4228 – Evolve Bank & Trust
4585 – Homestar Financial Corp