The numbers are all in for our members that submit data to TMC Benchmark and March was the biggest month ever for new application volume in the three years we've been analyzing data as part of it. Other highlights from this month's report were a reduction (as a % of total business) in government lending as lenders tightened the credit reigns, as well as sharp increases to operational productivity despite lenders moving their staffs totally remote mid-month. We also saw big increases to the non-third party lender fees charged to borrowers.
Application volume was up 54% (units) in March from February, which was a strong app month in its own right. Equally as notable was the drop off in government lending to just 18% of total apps taken, down 6% from last month and down 12% from last year's %. Closed loan production in March was also up, increasing 28% (units) over February. 46% of March closings were refinances, up from 40% in February. Operational efficiency skyrocketed in March. Closed loans per FTE processor in March increased from 8.7 to 13.2 (versus the month prior), closed loans per underwriter rose from 28.3 to 41.8, and closed loans per closer increased from 34.8 to 50.8. The average loan originator closed 5.8 loans in March after closing 4.0 loans on average in February. Loans closed fairly quickly in March, with the average "app to clear to close" time frame coming in at 33.3 days, up slightly from February's TMC Benchmark record low total of 31.7 days. The average LO comp on March closings came in at 95.7 bps, down from 99.3 bps on February closings. We also saw our lenders substantially raise their non-third party lender fees, from $1,213 in February to $1,389 in March on conventional loans and from $1,132 to $1,196 on govies. Average salaries paid to processors ($51,944), underwriters ($84,107), and closers ($52,749) all increased in March, up 2-4% from the month prior. We saw reductions (likely volume based) on the average cost per closed loan our members paid for their LOS ($110), POS ($60), and CRM ($104). 53% of participants this month were IMB's and 47% were depositories. 45% of February participants originate $500M or less in annual production, 18% are in the $500M-$1B annual originations range, and 37% of March TMC Benchmark submissions were from companies that originate more than $1B/year.
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Another week of impactful lender networking calls on the TMConnect platform kicks off in grand style on Monday as our members will be treated to commentary from and Q&A with two of the biggest names in the real estate industry. At 1 PM EST, we’ll talk with former MBA CEO and FHA Commissioner Dave Stevens to get his thoughts on the FHFA’s recent announcements on the handling of loans in forbearance. At 3 PM EST, current FHA Commissioner Brian Montgomery will join us to discuss the current state of Ginnie Mae and the FHA loan program. Like all of our sessions, both will be interactive featuring questions from our members - so make sure to tune in live to engage with us. Check out the rest of the week's lineup below! All registered attendees will also be emailed copies of the recordings at the conclusion of each session. Assessing Impact of the FHFA's Handling of Forbearance - A Conversation With Dave Stevens
APRIL 27TH | 1 PM EST Register The State of Ginnie Mae & FHA - A Conversation with FHA Commissioner Brian Montgomery APRIL 27TH | 3 PM EST Register Dealing with Today's Market Uncertainty APRIL 28TH | 2 PM EST Register NMLS & Compliance Training in a Remote Setting - Hurdles & Solutions APRIL 28TH | 3 PM EST Register The State of the FHA Secondary Market APRIL 29TH | 3 PM EST Register Capital Markets: Update From The Front Line APRIL 29TH | 4 PM EST Register The Benefits of Membership in The Mortgage Collaborative APRIL 30TH | 3 PM EST Register Have a topic that you want us to cover through TMConnect? Fill out the form here! One of our favorite submissions that we received last week was from Jodi Hall, President of Nationwide Mortgage Bankers.
"Good morning, I am writing in response to Rich’s call for positivity. Being headquartered out of one of the hardest hit areas of the country, Long Island, NY, our team not only seamlessly moved to nearly 100% remote, they have thrived. The leadership of our managers is greater than we have ever seen. Our employees are more compassionate toward each other and have increased communication across departments to help makes someone else’s day better. Everyone understands that loan officers don’t get paid if they can’t close loans and they do everything in their power, no matter the hour, to get the doable loans done. It is literally a love fest between underwriting and sales. Who would have thought that was possible! Our executive management team is closer than we ever have been before, communicating many times a day. Any time on our calendars without meetings, we make rounds and call individuals on our teams to see how they are doing. We join departmental meetings and happy hours to say thank you and stay engaged with them. There are many projects we have had to fast forward operationally to do business as normal as possible. And management has worked very long hours, sometimes 7 days a week, to compress the completion to make virtual work and application through closing processes easier remotely. We also have given back more than usual! Police, fire, first-responders and healthcare works are plentiful on Long Island and many commute into NYC. Many are the loved ones of our employees. We have not only offered them no junk fee loans at below industry average rates, but have donated over 15,000 masks, 5,000 personal hand sanitizers, 2,000 thermometers, 2,000 gloves, 500 disposable caps, 300 shoe covers, and 150 face shields nationwide, and feed departments within hospitals, police precincts, and firehouses several times per week in our neighboring communities. This week we started offering online continuing education courses for local realtors. We will continue to do these around the country to help realtors get this completed while stay at home orders continue. I have never been more proud of an organization and how everyone’s passion and perseverance is bubbling to the top. We haven’t had a guidebook on how to deal with a pandemic in our industry but I would be willing to document how our team has performed to have it for the next go around. We are Nationwide Strong! Thank You & Stay Safe! Jodi Hall President Nationwide Mortgage Bankers" Wow, thank you so much for sharing, Jodi! If you have something positive to share, email Gabriela at GMendicino@mtgcoop.com for a chance to be featured on our site. matchbox | IGNITE Offer Collection of Tools to Support Mortgage Bankers in Uncertain Times4/23/2020 In light of the current market and the various stimulus programs being implemented by our government, matchbox & IGNITE have created a set of Encompass-based ”stimulus packages” to help their clients make better use of Encompass and their data to increase productivity, better navigate the dynamic Secondary execution landscape, and provide insight into managing the business changes needed to be successful in this environment.
Stimulus Package Series:
As we all navigate through this altered business climate together, our team at TMC continues to make the facilitation of real-time discussions on the issues most important to you, our members, our top priority. Next week, we keep our focus on forbearance related issues, the FHA secondary market, and the broader secondary market…while starting to turn our eye towards an offense-oriented strategy. Please keep your feedback coming! It is your voice that is driving the content every week. All registered attendees will also be emailed copies of the recordings at the conclusion of each session. Forbearances: What You Need to Know
APRIL 20TH | 2 PM EST Register The State of The FHA Secondary Market APRIL 20TH | 3 PM EST Register Tools Available Today for Encompass Users to Optimize a Remote Work Environment APRIL 21ST | 2 PM EST Register Helping Lenders Manage Their Pipelines During Challenging Times, led by Fannie Mae's Capital Markets Experts APRIL 21ST | 3 PM EST Register Capital Markets: Managing Through Chaos - Part II APRIL 21ST | 4 PM EST Register How Do I Start Generating Purchase Business in this Climate? APRIL 22ND | 3 PM EST Register Capital Markets: Update From The Frontline APRIL 22ND | 4 PM EST Register Keeping Your Staff Compliant on Social Media APRIL 23RD | 2 PM EST Register The Benefits of Membership in The Mortgage Collaborative APRIL 23RD | 3 PM EST Register Have a topic that you want us to cover through TMConnect? Fill out the form here! As the winds of change continue to whirl through the mortgage industry, our team at TMC continues to create content and sessions in real-time to help our members navigate the evolving business climate. We’ve spent a lot of time talking about verifications of employment, appraisal alternatives, closing solutions, and effectively managing remote staff. We now shift our focus to the forbearance process and its impact on servicing, preventing buybacks of loans, FHA lending, and the volatile capital markets. All registered attendees will also be emailed copies of the recordings at the conclusion of each session. Forbearance Overlays & Preventing Buybacks
APRIL 13TH | 3 PM EST Register Mortgage Servicers Roundtable: Managing The Forbearance Process APRIL 13TH | 4 PM EST Register The Intelligent Way To Virtual Emotions APRIL 14TH | 2 PM EST Register Appraisal Answers for the Industry’s Most Pressing Questions During COVID-19 APRIL 14TH | 3 PM EST Register The FHA Secondary Market – What’s Going On This Week? APRIL 14TH | 4 PM EST Register MSR Landscape, Execution & Strategy APRIL 15TH | 2 PM EST Register Capital Markets: Update From The Frontline APRIL 15TH | 4 PM EST Register The Benefits of Membership in The Mortgage Collaborative APRIL 16TH | 3 PM EST Register The Crystal Ball – What Will Rates, Volume & The Purchase Market Look Like? APRIL 16TH | 4 PM EST Register Have a topic that you want us to cover through TMConnect? Fill out the form here! We've lined up another series of lender-led member networking calls on these vital business issues for next week that you'll find below with links to register. Our team has worked diligently to cover real-time industry issues that you've told us are most important to you and will continue to prioritize them as long as they prove to be useful to our members. All registered attendees will also be emailed copies of the recordings at the conclusion of each session. Managing a Locked Pipeline Full of Employment Disruption
APRIL 6TH | 3 PM EST Register Capital Markets: Managing Through Chaos APRIL 7TH | 2 PM EST Register Best Practices for Managing the Appraisal Process Right Now APRIL 7TH | 3 PM EST Register FHA Pricing Today & The Future of FHA Lending APRIL 7TH | 4 PM EST Register Mortgage Servicers Roundtable: The Impact of Forbearance APRIL 8TH | 3 PM EST Register Capital Markets: State of the Market APRIL 8TH | 4 PM EST Register What Are My Options to get Loans Closed Today APRIL 9TH | 3 PM EST Register Effectively Managing Remote Employees (for managers) APRIL 9TH | 4 PM EST Register Have a topic that you want us to cover through TMConnect? Fill out the form here! |
Rich Swerbinsky
TMC - Chief Operating Officer Archives
March 2021
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