TMC Benchmark November Data - Volume & Efficiency Continue to Wane as Record Year Approaches Starts to Come to a Close
By historical standards, both volume and efficiency are still at very robust levels for the lender members of The Mortgage Collaborative that submit data to TMC Benchmark. But the November data shows a continued a slowdown in both areas as we get towards the tail end of an incredibly busy and lucrative year for our industry.
Let's start with volume. After peaking in September, total monthly closed loan units fell off by just 1% in October. In November, they fell off by another 8%.
78% of all November closed loan units were on conventional loans, up from 76% in September and 77% in October. Conversely, government closed loan units accounted for just 18% of all closings in November, down from 20% in September and 19% in October. Lest anyone think that the refinance boom is over or ending, refinances accounted for 53% of all November closed loans, the highest refi % share of closings since May. Here's a look at the TMC Benchmark purchase/refi mix since the pandemic started:
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
October - 51% purchase/49% refinance
November - 42% purchase/58% refinance
New applications also continue to tail off. After peaking in the summer, we started to see month-over-month new applications start to slow down in September, dropping 13% from August. In October, we saw a 10% decrease from September. And here in November, we saw another 7% month-over-month drop in new applications from October, foreshadowing likely similar declines in closed loans units in the months to come. 77% of new November applications were on conventional loans, 18% on government products, and 5% on all other products.
Operational efficiency waned in November, continuing a trend we started to see on August closed loans. The number of closed loan units closed per full-time processor in November fell to 13.2, down from 15.1 in October and down 23% from a high of 17.2 on June closings. Closed loan units per full-time underwriter fell to 41.9 from 48.7 the month prior, and down 24% from a high of 54.8 in June. Closed loan units per full-time closer fell to 51.0 from 60.4 and was down 21% from the June high of 64.9. The average loan originator closed 7.5 loans in November, down from 8.3 in October. That average was in the low 8's all summer before peaking at 8.6 in September. LO comp came in at an average of 99.3 bps on November closings.
The average "app date to clear to close date" time frame also continued to rise in November, hitting an all-time TMC Benchmark high of 45.3 days. This number was at 37.2 on July closings before slowly rising into the high 30's late summer, the low 40's in early fall, and to the mid 40's as we get into the winter months.
After peaking in the summer, average salaries paid to processors, underwriters, and closers continued to slowly subside this month. On average, processors in our network were paid $51,200 annually in November, while underwriters came in at $88,000 and closers at $58,100.
The average cost per closed loan unit our members paid for their loan origination system spiked to $124 in November, which is the highest total we've seen here in 2020. We also saw increases in the average cost per closed loan for point-of-sale systems to $72 and for CRM's at $110. The average non-third party lender fees charged by our members on November closed loans was $1,126 on conventional loans, $1,074 on government, and $1,215 on all other products.
52% of this month's participants in TMC Benchmark were IMB's and 48% were depositories. 38% originate under $500M a year in annual volume, 25% originate between $500M-$1B, and 37% originate over $1 billion per year in annual production.
President & Chief Operating Officer
The Mortgage Collaborative
Congratulations to all of our TMC Members and Partners that were recently recognized on NMP's 40 Under 40 Influential Achievers of 2020 list! These up-and-comers have raised the bar for their organizations and the mortgage world, offering fresh perspectives and leadership styles that have collectively made the industry better.
The Mortgage Collaborative is pleased to announce that Thomas Gallucci has officially been promoted to Senior Vice President of Business Development. TMC firmly believes in building a dynamic leadership team that will enhance service to our members and partners and implement strategies to ensure our co-op's continued growth.
"Tom joined TMC when we were a young organization with great ideas; but we did not have the scale to deliver on our full potential. I can say without a doubt that Tom is one of the main reasons why TMC has grown into such a dynamic network of lenders and preferred partners that support each other’s growth and profitability." - Jim Park, CEO & Partner
"Tom was hired with next to none of the experience needed for the role he now excels at. He made no excuses, never complained, worked his butt off with little to no support for years, always made self-educating himself on our evolving industry a priority, and worked hard every day to get better at his vital role with TMC. All done with a smile and a great disposition. Few really know how tough it was in the early years of TMC, building the company and staying committed to the vision. Tom felt that pain more than anyone and no one would ever know it.
Success does not come to people by accident. It is the byproduct of hard work, perseverance, learning, sacrifice and loving what you do.
I have never been prouder of or happier for any employee that I’ve ever worked with, and I genuinely mean that." - Rich Swerbinsky, President & Chief Operating Officer
"Tom is a great person to bounce ideas off of, because oftentimes we don’t think the same way. I can literally have any conversation with him and there’s a shared respect of Business Development and Member Engagement and our functions. He listens, hears, and together we work together to find a solution that works for both teams. And he’s fun even when having the hard conversations." - Faith Howard-Mooney, VP, Member Engagement
"Congratulation Tom, well deserved. I am lucky to work with Tom on a daily basis. He is passionate, dynamic and driven. He is in-tune with every preferred partner in TMC and a dedicated advocate for making connections and promoting relations within the network. He loves his job and the members of TMC and it comes through in all he does. So thankful he is part of the TMC family!" - Toni Bramley, Business Development Coordinator
"Tom is a special young man, a quiet tenacity who delivers for our Lender Members by growing & managing an amazing group of Preferred Partners. Always the diplomat, Tom exemplifies the tremendous culture inside TMC. His promotion to SVP is very well deserved - congratulations, Tom!" - David Kittle, Vice Chair & Founder
HousingWire has announced their 2020 Tech Trendsetters, and no surprise to us that so many of our Lender Members and Preferred Partners were recognized on this list! Mortgage tech industry is constantly evolving and our network knows the importance of staying out in front of emerging technologies. Congratulations to our below members and partners who are making waves in mortgage tech!
Lindsay Bhandari, Vice President, Capital Markets and Treasury Technology Management, Fannie Mae
Lori Brewer, Founder and CEO, LBA Ware
Katherine Campbell, Chief Digital Officer, Assurance Financial
Kallol Das, Head of Engineering, Blend
Andy Higginbotham, Senior Vice President and Chief Operating Officer of Single-Family division, Freddie Mac
Pat Kinsel, Founder and CEO, Notarize
Alex Kutsishin, CEO, Sales Boomerang
John Paasonen, Cofounder and CEO, Maxwell
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TMC - Chief Operating Officer