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
TMC - Chief Operating Officer