Fannie Mae Upgrades Economic Forecast Despite Continued Risks
Stewart Title Strengthens Operations in Alaska with New Acquisition
Plaza Home Mortgage Launches New Correspondent Portal
MeridianLink® Receives 2020 High Tech Award for Best Technology Company Leadership Team
VirPack Announces New Integration to Streamline the Digital Mortgage Process
LoanLogics Whitepaper: How to Get the Most from Your MERS® Annual Review
Loan Vision's Beth Johnson: Unlocking the Numbers - Leveraging Granular Financial Detail in Business Strategy
Black Knight SVP of eLending Solutions, Andy Crisenbery: COVID-19 Created "Quick Fix" FinTech Solutions
CBC Mortgage Agency President, Richard Ferguson: What We Can Do to Help the Homeownership Wealth Gap
Fannie Mae's VP of Enterprise Technology, Tracy Stephen: Customer-Facing Technology is a Top Priority for Lenders
MQMR's Anti-Playbook for Servicing Oversight: The Best Defense is a Good Offense
LoanLogics - B-Logics: Small is the Big with LoanLogics® Service Delivery
Arch MI Capital Commentary: Biden-Harris Campaign Housing Policy Review
Credit Plus: The Changing Face of Mortgage Verifications During COVID-19
Credit Plus: America's Mortgage News - 2020 at the Half
Mortgage Management Playbook Podcast features Plaza Home Mortgage COO/CFO, Mike Fontaine
Mortgage Coach's Dave Savage - The Walk Podcast
Loan Vision Industry Insights: Navigating PPP Loan Forgiveness Applications for Lenders
Certified Credit Adds Marisol Pintado to Operations Team
CWDL Adds Industry Veterans Susan Volpe & Dustin Pfluger
ICYMI: Total Expert Welcomes Allison Netzer as New CMO
August was another spectacular volume month for TMC's national network of best-in-class mortgage lenders that submit data to TMC Benchmark. We saw a pretty substantial drop-off in efficiency and productivity during the month, most likely due to operational staff vacation time and general burn-out - so there are no stops in sight for The Volume Train as we emerge from the dog days of summer and head into the fall months. Better problems to have than the problems of two winters ago, but problems lenders are faced with nonetheless as we enter the latter part of a year that looks like it could be the biggest production year ever for the mortgage industry.
Starting with closed loan production, August was a strikingly similar month to July. Closed loan units were nearly identical (-0.05%) as was the mix of conventional (75%) and government (21%) business. The purchase/refinance mix on closed loan units in August was 55%/45%. Let's take a look at that mix for the last four months, which have been the four biggest closing months we've seen in the four-year history of TMC Benchmark:
May - 42% purchase, 58% refinance
June - 51% purchase, 49% refinance
July - 58% purchase, 42% refinance
August - 55% purchase, 45% refinance
Like with the closed loan data, new applications taken were also nearly identical in August to the prior month (-1.7%), as was the production mix - 77% conventional, 19% government, 4% other.
What was not consistent from July to August was operational productivity and efficiency. On average, it took our members 2.3 days longer to close loans in August versus July, with the average "app date to clear to close date" time frame rising from 37.2 days to 39.5 days in the most recent month. And after seeing all-time highs in operational employee efficiency in June, we saw our second straight month of decline in August.
Here's the closed loan unit totals per FTE (full-time employee) for the last four months (May/June/July/August):
Processor - 16/17.2/16.8/15.2
Underwriter - 51.8/54.8/52.1/50.1
Closer - 63.8/64.8/62.7/61.8
Loan Originator - 7.0/8.1/8.2/8.1
The average LO comp on August closings came in at 96.8 bps, down 5.1 bps from July's 101.9 total but in line with the 97.1 total two months prior on June closings. We've seen this number vacillate between 95-105 bps these first eight months of 2020. We saw decreases in the average non-third party lender fees per loan our members charge their customers, with conventional loans coming in at $1,119 and government at $1,072.
On the compensation side, we saw fairly steep drop offs in processor and underwriter average annual compensation but an increase in closer compensation most likely due to lenders using more outsourcing services for processing and underwriting functions. Processor average annual comp fell from $56,790 in July to $52,992 (-6.8%) this past month while underwriter average annual comp fell from $94,294 in July to $89,104 (-5.5%). Closer comp increased from $54,212 to $55,376 (+2.1%).
The average cost per closed loan our members paid for their LOS ($95), POS ($51), and their CRM ($89) was remarkably consistent with the prior month and the monthly averages for 2020.
53% of companies that submitted August data to TMC Benchmark were depositories and 47% were IMB's. 35% originate $500M or less annually, 26% originate between $500M-$1B, and 39% originate $1 billion per year or more in total volume.
Chief Operating Officer - The Mortgage Collaborative
Docutech is Now First American Docutech
Black Knight Completes Acquisition of Optimal Blue
Total Expert: The Experience Experiment - Undercover Shoppers Spill All
Built Launches New Disaster Tracking Tool for Lenders
Maxwell Adds Underwriting & Closing Services to Fulfillment Platform
HW Annual: Fannie Mae Chief Economist, Doug Duncan to Provide Economic Forecast
National MI Recognized in SF Financial Times Mid-Market 50 List
Plaza Home Mortgage Helps American Red Cross Deliver Lifesaving Blood to Patients in Need
Triserv President, Joe Bryant: Dodd-Frank - Another Compliance Pitfall
Blend Forward, Sept 22 - 23: Day 1 Focused on Mortgage & Day 2 Focused on Consumer Banking
ICYMI: LBA Ware - What Data Insights Do Mortgage Lenders Need Right Now?
Arch MI Policy Cast: Capital Commentary - 2020 Trump-Pence Campaign Housing Policy Review
Credit Plus Knowledge Hub: How to Speed Up Supplements & Closings
LoanLogics Infographic: HMDA Efficiency - Switch Gears from Manual to Automatic
Blend Blog: Providing a One-Stop Shopping Experience for Digital Lending Tools
Certified Credit Announces the Addition of Melissa Kass to Operations Team
HW Daily Download: ICE Completes $11B Acquisition of Ellie Mae
Sales Boomerang: Bourbon & BS Episode 9 with Stephen Barton from Eustis Mortgage
This year, HousingWire compiled a list of 50 operations superstars that have been integral in keeping their companies afloat throughout 2020, and we were thrilled to see the Power of the Network represented in such force. Congratulations to each and every one of these unsung heroes that kept their organization and our industry on track!
Docutech's Solex eClosing Engage Gives Lenders the Insights They Need to Determine Eligibility for Every Loan
Total Expert CEO, Joe Welu Recognized as Finalist for Ernst & Young's 2020 Heartland Award Entrepreneur of the Year Award
Stewart Announces Acquisition of Large Portion of ET Investments Western Operations
Blend CEO, Nima Ghamsari Recognizes Among Fortune Magazine's 40 Under 40 in Finance
Capacity Celebrates Adding Leading Lenders at Platform & the Addition of John Heck as Senior Advisor of Lending Solutions
LoanLogics Steps Up to Help American Cancer Society Carry On its Mission
Notarize & Title Partner See Over 200% Spike in RON Closings
ActiveComply Collaborates for Compliance in Latest Case Study
The Tech Tribune: Built Technologies Recognized as #1 2021 Start Up in Nashville
ICYMI: Fannie Mae eMortgage Customer Spotlight - Thrive Mortgage
With Ellie Mae Acquisition Finalized, ICE Prepares to Unleash a "Fully Digital Mortgage Ecosystem"
Loan Vision Guest Blog: CWDL, Partner - Mortgage Banking, Dustin Pfluger: Your Company Received a PPP Loan. Now What?
Blend CEO, Nima Ghamsari: Why Mortgage Lending Needs More Data, Not More Documents
A Conversation with SimpleNexus New President, Cathleen Schreiner Gates
M Report: LoanLogics Chief Business Officer, Craig Riddell - There's No Turning Back From Digital Labor
Triserv President, Joe Bryant - AIR: Are You AIR Compliant?
Capacity CEO, David Karandish: Advise for Software Startups During Pandemic
The Mortgage Banker: MQMR President & Co-Founder, Michael Steer: Pandemic Underscores Need for Stellar Customer Service in Loan Servicing
Stewart Brings Back Kevin Reilly as EVP of Agency Services
Black Knight: A New Tool to Help Lenders Drive Profitable Loan Production
Capacity: 3 Expert Opinions - What's Is & Isn't Working in the US Mortgage Industry
Blend: New eBook - Tackling Digital Inconsistencies to Create a Better Customer Experience
Informa: Navigating the New (Ab) Normal in Lending
MQMR Weekly FAQ: MERS Policy & Procedure Best Practices
Maxwell NEW eBook: Outsourced Fulfillment
VirPack: How to Be An Effective Player-Coach
HW Daily Download: James Kleimann Joins HousingWire as New Mortgage Editor
Arch MI PolicyCast (Inaugural Episode!): Capital Rule Jeopardizes Housing, Taxpayers
Total Expert: Mortgage Innovators - Using Technology to Build Better Relationships
Sales Boomerang featuring Atlantic Coast Mortgage's Corey Shelton: 110 seconds to $2MM Earned
Every year, Inc. ranks the 5,000 fastest-growing private companies in America, and every year our TMC Family shines in the results. Pleas join us in congratulating the following companies:
Nationwide Mortgage Bankers
Liberty Home Mortgage Corp
Sovereign Lending Group
Town Square Mortgage & Investments
OneTrust Home Loans
2020 has been crazier than a fly living in a bass drum. Time to have a little fun.
Back, by popular demand, I bring to you ... The 20 Best Names in the Mortgage Industry.
Many of these are submissions! Keep them coming to me at firstname.lastname@example.org.
The world needs a vaccine. And more people with the first names Baird, Cameo and Fobby.
14. Flisadam Pointer, REMN Wholesale
15. Shirleen-Queenie VonHoffmann, Homebuilders Edge
16. Zeke Wolfgang - Freddie Mac
These are the names that pop stars Katherine Hudson (Katy Perry), Peter Gene Hernandez (Bruno Mars), and
John Stephens (John Legend) SHOULD have gone with.
17. Scott Beer, Hallmark Home Mortgage
18. David Sober, LRES Corp
Another duo I’d like to go get a beer with.
19. Matt Mullet, 1st Security Bank of Washington
20. Shadi Taylor - Huntington Bank
Matt does not have a mullet. Shadi is not shady. But both have great names.
Aspasia Chamoun - Bank Fund Staff Federal Credit Union
Dave Savage, Mortgage Coach
Scotty Pickle, Celebrity Financial
Don Salmon, TBI Mortgage
Dionisia Bejarano Coffman, Chase
Carmel York, Western Alliance Bank
Taylor Stork, Developer’s Mortgage Company
Feliks Viner, First World Mortgage
Cola Galvin - Homespire Mortgage
Geri Glixman, First Integrity Mortgage
Johnny Margarini, Point Mortgage
Freddy Casanova, The Money Source
Harry Holder - Veritas Funding
Rusty Creel - Crescent Mortgage
COO - The Mortgage Collaborative
Docutech Insights: FHLB Now Accepting eNotes as Pledged Collateral
ICYMI: SimpleNexus Adds eClosing Feature
Registration Open for FreddieCONNECT 2020
Built: The COVID-19 Conundrum: Money Available for New Construction Projects but Few Breaking Ground
ICYMI: Credit Plus Announces Integration with DayOne Certainty Services from Fannie Mae
Notarize Partners with J.D. Power to Enable Fully Digital Purchase Experience
ICYMI: MERSCORP Holdings - Widespread eNote Adoption Depends on Five Pillars of Liquidity
Stewart Title Adds New Group SVP for Southwest Direct Operations
Total Expert Brings on New Chief Product Officer
Notarize Welcomes Cristin Culver as Head of Communications
Stewart Title Adds New EVP of Enterprise Operations, Louis Pontani
Certified Credit Adds Samantha Markwood as Director of Account Servicing
Welcome to The Benchmark - Episode 1, powered by Blend
LBA Ware On-Demand Webinar: Sophisticated Payroll Coordinator's Guide to the LO Comp Rule
Arch MI for Credit Unions
Video Demo: Capacity - An AI-Powered Helpdesk Automation Platform
Events to register for...
SocialSurvey 2020 CX Experience Virtual Summit: September 14th - 16th
HousingWire Annual: October 8th
Blend Forward: September 22nd - 23rd
TMC Benchmark July Data: Ridiculous Volume & WFH Operational Productivity, More Purchases, No Let Up In Sight
July was another huge month for TMC's national network of lender members that submit data to TMC Benchmark. While closed loan production and new applications taken during the month were down slightly from June, July was the second strongest month ever for our members in those two key production metrics. The network closed loans on average one day faster in July than June, but were slightly less efficient, as purchases transactions comprised 58% of July closings, up 7% from June's 51% purchase mix.
Closed loan production was down 6.3% (units) in July, but again, that is compared against June's eye-popping totals. For some perspective, our members closed 8.5% more units in July when compared against May, which was the biggest closing month ever for our members before being eclipsed by June's totals. The mix of closed loan business in July stayed nearly identical - 74% conventional, 21% government, 5% other (jumbo, portfolio, etc.). Closings continue to become more purchase-heavy. Purchases were 41% of closings in April, 44% of closings in May, 51% in June, and represented 58% of all closings in July.
New applications taken were down 4% month-over-month, but like with closings, July was the second biggest new app month ever for our members behind June and July new apps taken were up 16.8% over May's strong totals. The mix of new app business in July trended slightly more towards conventional production. 78% of new apps in July were on conventional production and 18% were government loan programs versus a 76%/20% mix in June.
After seeing our members set new productivity records in June, operational efficiency was still very strong but just a bit off in July. Here's the closed loan unit totals per FTE (full-time employee) for the last three months (May/June/July):
Processor - 15.2/17.5/16.9
Underwriter - 49.1/54.9/52.2
Closer - 61.0/64.8/62.5
Loan Originator - 7.0/8.1/8.1
The average LO comp on May closings came in at 101.9 bps in July, up from June's 97.1 total. We've seen this number vacillate between 95-105 bps these last six months. We saw an increase in the average non-third party lender fees per loan our members charge their customers, with conventional loans coming in at $1,154 and government at $1,097.
For the first time in six months, underwriter annual comp leveled off, coming in at an average of $94,294, up almost $10,000 from before the pandemic. Average annual comp paid to processors ($56,790) and closers ($54,212) both continues to increase though. We saw fairly significant month-over-month decreases in the average cost per closed loan our members paid for their LOS ($97, down from $115), POS ($49, down from $76), and their CRM ($86, down from $134).
51% of companies that submitted June data to TMC Benchmark were depositories and 49% were IMB's. 35% originate $500M or less annually, 26% originate between $500M-$1B, and 39% originate $1 billion per year or more in total volume.
Fannie Mae & Freddie Mac CEO's Address Industry on Refinance Fee Grievances
iEmergent Releases 2020-2022 U.S. Mortgage Origination Update
Business Insider Recognizes Built as Breakout B2B Star
LBA Ware Adds Fintech Data Expert Matt Semrad to Build Predictive Analytics for LimeGear BI
Independent, 3rd Party Analysis Shows SimpleNexus Digital Mortgage Platform Delivers 9X - ROI
Fannie Mae Promotes Jeff Hayward to Chief Administrative Officer to Focus on Diversity & Inclusion
HW Pulse: Vice Capital Markets Principal, Chris Bennett: How eNote Acceptance Impacts Secondary & Servicing Operations for GNMA Issuers
Black Knight Blog: Ernst Fee Service - Helping Mortgage Lenders Solve Cure Fees
Maxwell Blog: 5 Ways an LO Can Build Relationships with Real Estate Agents in COVID Era
Request Your Custom ROI Report to See the Operational Impact SimpleNexus Can Deliver
MGIC Connects: Dispelling an Old Mortgage Myth - 15 is Greater than 20
MeridianLink: How COVID-19 Revealed the Flaws of Many Lenders
MQMR Weekly FAQ: Advertising & Social Media - Policies & Procedures
LoanLogics B-Logics: Digital Labor is a Workforce Waiting to be Exploited
VirPack Blog: Setting Expectations for Employees
FOX Business - Blend CEO, Nima Ghamsari: COVID Accelerated Need for Digitizing Mortgage Experience
HW Daily Download: iEmergent's Chief Analytics Officer, Mark Watson - Mortgage Lending Reaching as High as $3.21 Trillion in 2020
Maxwell Clear to Close Podcast: Mortgage Tech Adoption in the COVID Era
Customers Are Talking About the Power of Arch MI
TMC - Chief Operating Officer