Built Technologies CEO, Chase Gilbert Honored by Goldman Sachs Among Top 100 Most Intriguing Entrepreneurs at 2020 Builders + Innovators Summit
LBA Ware's LimeGear: Inspire Results with Turnkey BI
Associated Bank: Q3 - 2020 Market Review
MGIC Digital Marketing Specialist, Zac Stoiber: 9 Reasons I'm Ready to Buy My First Home
TriServ Personnel Profile: SVP of Sales, Ted Venhorst
Blend: 4 Reasons Digital Agility in Lending Has Become A Necessity
Freddie Mac: Evaluating Income Among A Pandemic
LoanLogics B-Logics: Mortgage Doc Processing You Can Try Before You Buy
ActiveComply: Instagram for Business - Simple Steps to Transition from Personal Usage to Business with Ease
MQMR Weekly FAQ: Outsourcing - Contract Employees & Exclusionary Lists
SimpleNexus Announces Addition of Tracy Farber as Director of Solution Engineering
Podcast: The Future of Digital Closings, featuring First American Docutech President, Amy Brandt
Credit Plus Knowledge Hub: Add Previously Frozen Files to Credit Reports
Power Your Possibilities with Arch MI
Virtual Event: Maxwell presents: MAXOUT Fall 2020 - Nov 16 - 18
Webinar featuring LoanLogics: Achieving Frictionless B2B Commerce in the Mortgage Industry
TMC Benchmark September Data: Record Closing Pace Continues in September, But Applications Start To Slow
September was another record setting closing month for many of TMC's national network of best-in-class mortgage lenders that submit data to TMC Benchmark. Closed loan production (units) in September was nearly identical to August, making it five straight months of closings higher than we'd ever seen before from our network in the four-year history of our popular network data benchmarking tool. Our weary lender members may see a little operational relief in sight, as applications (units) were down 27.4% in September as compared to August. For some perspective, even with the drop-off, September application totals were still higher than any one single month in 2019. Operational efficiency stayed pretty flat for our network in September after reaching all-time highs in June, and slowly falling over the summer months.
As noted above, closed loan units were nearly identical month-over-month (-1.2% from August to September) as was the mix of conventional (76%) and government (19%) business. The purchase/refinance mix on closed loan units in September was 51%/49%. Let's take a look at that mix for the last five months::
May - 42% purchase, 58% refinance
June - 51% purchase, 49% refinance
July - 58% purchase, 42% refinance
August - 55% purchase, 45% refinance
September - 51% purchase, 49% refinance
Applications were down in September, but still strong. We've been seeing the % share of government loan applications slowly decline these past several months, topping out at 21% in June and falling to 17% for this latest month. The lagging closed loan data has followed this trend.
Operational productivity and efficiency stayed pretty consistent in September. On average, it took our members 3.3 days longer to close loans in September versus August, with the average "app date to clear to close date" time frame rising from 39.5 days to 42.8 days in the most recent month. It will be very interesting to see how operational efficiency holds up with lenders staffing up all summer and volume now starting to tail off a bit. Certainly efficiency will continue to drop as volume does, but how will efficiency this fall and winter compare with last fall and winter? We shall start to see in the coming months.
Here's the closed loan unit totals per FTE (full-time employee) for the last five months (May/June/July/August/September). While processor and closer efficiency stayed flat, underwriter efficiency fell off and LO productivity increased:
Processor - 16/17.2/16.8/15.2/15.1
Underwriter - 51.8/54.8/52.1/50.1/47.5
Closer - 63.8/64.8/62.7/61.8/61.8
Loan Originator - 7.0/8.1/8.2/8.1/8.6
The average LO comp on September closings came in at 97.5 bps, up 0.7 bps from August's 96.8 total. We've seen this number vacillate between 95-105 bps these first nine months of 2020. We saw increases in the average non-third party lender fees per loan our members charge their customers, with conventional loans coming in at $1,136 and government at $1,109.
On the compensation side, the average annual comp paid to underwriters fell for the fourth straight month to $88,419 after peaking in May at $94,767. Processor annual comp rose to $53,181 after declining each of the three months prior. Closer compensation has continued to increase all year, rising another $1,000/yr to $56,330 in September.
The average cost per closed loan our members paid for their loan origination system (LOS) fell from $95 to $93 per closed loan unit. We've continued to see the average cost of point-of-sale (POS) systems fall pretty precipitously all summer, with the September total at an all-time low of $42 per closed loan unit. The average cost our members pay for their CRM increased from $89 to $107 in September.
51% of companies that submitted September data to TMC Benchmark were independent mortgage bankers (IMB's) and 49% were depositories. 37% originate $500M or less annually, 22% originate between $500M-$1B, and 41% originate $1 billion per year or more in total volume.
Chief Operating Officer - The Mortgage Collaborative
Freddie Mac: US Mortgage Rates Fall to All-Time Low This Week
Black Knight Reports Forbearances Fall Below 3 Million for the First Time Since April
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Total Expert: LO's Are Only Human - Tech is Necessary to Keep Up with Max Loan Volumes
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Fannie Mae's Chief Economist, Doug Duncan Offers His Predictions for 2021
Forbes Technology Council, Featuring Capacity CEO, David Karandish: 15 Important Factors in Building a More Human-Centric AI Application
Total Expert Chief Product Officer, Matt Tippets Feature in Mortgage Professional America
Capacity: The Most Successful Use Cases for AI in the Mortgage Industry
LoanLogics BLogics: Avoid the Year-End Mortgage Compliance Scramble
Blend: Reimagining Remote Closings for a Better Digital Mortgage Experience
HousingWire Webinar featuring SimpleNexus: 3 Keys to Making A Successful Move to eClose - October 21st at 2 pm ET
SimpleNexus Releases 'Team Members' Allowing Mortgage Lenders to Fine-Tune Digital Workflow & File Permissions at User Level
Black Knight Delivers Major Enhancements to CompassPoint Pool Optimizer Solution
Plaza Home Mortgage Launches New Correspondent Portal - LINQ
LBA Ware Announces 100th Mortgage Client on Signature Offering CompenSafe
SimpleNexus Extends Ellie Mae Integration with Hybrid eClosings
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Planet Home Lending: Planet With a Purpose Causes
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Arch MI Capital Commentary: Credit Risk Transfer - Effective & Popular but Threatened
LendingQB: RON - Going Up, Up, Up in Borrower Preference
ABA Featuring Built Technologies: Construction Lending Survey Findings Overview
Modern Mortgage Summit, co-hosted by Mortgage Coach CEO, Dave Savage - 10/20
Sales Boomerang webinar: The Ultimate Prepper's Guide - 10/22 at 1:00 pm ET | 10:00 am PT
As this year was more challenging overall, so too was the selection process for this year's HW Vanguards. Many of these top housing executives have fought through various hardships to get to where they are today, and it shows in the determination and diligence that they implement every day in their leadership roles.
We were thrilled to see so many familiar names and faces from some of our most active Lender Members and Preferred Partners. Congratulations to everyone who was recognized as a HW 2020 Vanguard!
Christy Bunce, Chief Operating Officer, New American Funding
Chris Cordry, Executive Vice President and Senior Director Capital Markets, PrimeLending
Sarah Gonzalez, Chief Operating Officer, First Guaranty Mortgage Corporation
Tawn Kelley, President, Taylor Morrison Home Funding
Suzy Lindblom, Chief Operating Officer, Planet Home Lending, LLC
Alex Rosenblum, CEO, Axia Home Loans
Donna Corley, Executive Vice President and Head of the Single-Family Business, Freddie Mac
Richard Gagliano, President, Black Knight Origination Technologies, Black Knight, Inc.
Nima Ghamsari, Cofounder and CEO, Blend
Suzy Lindblom, Chief Operating Officer, Planet Home Lending, LLC
Bill Neville, CEO, LoanLogics
Brian Simons, President, Maxwell
Dave Stevenson, Chief Technology Officer, SimpleNexus
Joe Welu, CEO, Total Expert
Informa Financial Intelligence Banking Division Named Financial Benchmarking & Omnichannel Experience (FBX)
ICYMI: Vice Capital Markets - State Bank Case Study
Plaza Home Mortgage Makes Renovation Simple for Correspondents
Case Study: FBC Mortgage Has Peace of Mind with ActiveComply
VirPack Announces New Integration to Streamline eSigning of All Loan Docs
Total Expert: 4 Strategies to Fuel Digital Transformation, featuring CEO, Joe Welu
Stewart Title CEO, Fred Eppinger Q&A with HousingWire: Adding 600 Employees, Brand Refresh & Enhancing Customer Experience
HW Annual Experience - October 8th
LBA Ware webinar: Incentive Compensation for LOs & Ops: Top 10 Compliance Questions Answered
Notarize RE Wired - November 18th
LoanLogics: Five Outcomes, One Comprehensive Story: What Automation Gives Your HMDA Reporting
PHOENIX: More MSR Buyers Than Ever in the Flow Market
MQMR Weekly FAQ: Fannie Mae Requirements for Internal Audit of the QC Process
Arch MI: Policy Cast - Building Homes, Allies for Affordable Housing
Recruitment in the mortgage industry this year has been quite the adventure. Having spent most of last decade recruiting within the mortgage industry, I have not experienced anything like the current environment, and have heard similar sentiments from multiple mortgage lender clients in the industry far longer than myself. Operations talent is taking full advantage of their moment in the spotlight.
In conversations with our clients, they are experiencing similar frustrations. From being ghosted by candidates (even after they sign an offer letter), to losing valuable time when candidates no-show for scheduled interviews, to losing talent to competing offers that are insanely high (from a retention and recruiting standpoint), and an overall the lack of professionalism from many candidates in demand right now, lenders are struggling to bring onboard top ops talent.
On the flip side, for candidates, operations talent has been HEAVILY recruited by pretty much every lender and recruiter out there. Recruiting efforts have become white noise to many candidates and when approached by a company or recruiter, efforts are simply not as effective as typically seen in a “normal” market cycle. In addition, top candidates, those typically employed and not necessarily looking for a new role, are busy as hell trying to support their own pipelines. Finding time to manage multiple interviews is a challenge in and of itself right now. I advise candidates how worthwhile and lucrative it can be for them to carve out time for interviews, as offers to ops staff have inflated up to 30% or more in just the last 6 months.
Another challenge recruiters face is that top ops talent who would typically be receptive to recruiting efforts and potentially open to making a move have already done so or have moved off the market due to creative retention efforts from their existing employer. Operations staff who will follow the money and drive up overall compensation figures, have already taken advantage of the market and made their move leaving recruiters and lenders with a smaller available talent pool.
TMC - Chief Operating Officer