​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. 

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.  

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:

• Encompass Remote Assistant Package:This collection of tools works to improve communication within your team, allow progress to continue with multiple users are in a loan file, automatic file updates, file change tracking, and reports to track and manage your team’s Encompass productivity while working remotely.
• IGNITE Liquidity Package: Designed to provide automated tools and integrations to jump-start your ability to automate warehouse funding processes, improve delivery to the agencies, boarding loans to sub-servicers, and reporting on warehouse aging and loan purchases.
• IGNITE Rebound Package: Created to increase the efficiency and productivity of your Closing and Post-Closing departments with automated tools that replace manual tasks, save time from having to open and save files, and increase overall production from these departments.
• IGNITE Rescue Package​: Highlighted by a new “On Hold” classification in Encompass for loans that may have fallen out but have a high likelihood of coming back prior to having to be adversed. Also part of this package is a Pipeline Optimizer reporting tool that allows a user to easily query their pipeline for a specific reason code (employment, investor, loan program) and see exposure to a change in the market within seconds.

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.