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. Rich Swerbinsky President & Chief Operating Officer The Mortgage Collaborative
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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 Joseph Puthur, President and Chief Product Officer, Mortgage Coach Top Headlines...
Total Expert & SimpleNexus Supercharge Information with A Two-Way Data Sync Black Knight: Forbearance Starts Trending Upward The New URLA is Coming Jan 1. Are You Ready? Fannie Mae & Freddie Mac Are Here to Help Dart Appraisal Acquires Nationwide AMC, USAMC LBA Ware Unveils Expanded Functionality to 'CompenSafe's 'Verify Pay' Feature FinLedger: Modular Architecture Powers Blend's Expansion From Mortgage Into Consumer Banking Products ICYMI: TMC Partners MeridianLink's LendingQB & OptiFunder Announce New Integration to Optimize Warehouse Funding & Reduce Net Origination Costs Thought Leadership... Vice Capital Markets SVP of Business Development, Scott Colclough: Amidst Uncertainty, Hedging Still Works Capacity CEO, David Karandish: Want to Boost Productivity? Cut Down on E-mail Plaza Home Mortgage CFO & COO, Michael Fontaine: Leading Through the Good Times & the Bad TriServ Personality Profile: Kevin Pettaway - Sales Blog... Black Knight Mortgage Monitor October 2020 Report LBA Ware: Leveraging BI - A Day in the Life of a Performance-Focused Lender Media... On-Demand Webinar: Built & ABA present: The Power of Lien Monitoring On-Demand Webinar: Plaza Home Mortgage: Enhanced Customer Service Through Better Business Communications Events... SNUG 2021 - The eMortgage Forefront - Feb 22 - 24 Top Headlines...
ICYMI: Black Knight: 2020 On Pace to Exceed 9 MM Refinances; 82% of Refi Borrowers Not Retained Financial Intelligence (informa.com) Monthly Mortgage Analytics PHOENIX Introduces Dynamic MSR Proforma Advisory Services Thought Leadership... Credit Plus Managing Partner, Greg Holmes on COVID Challenges Plaza Home Mortgage Co-Founder & Vice Chairman, James Cutri: Building Trust & Being Open Minded Critical to Success Blog... LoanLogics White Paper: Field Guide for the Care & Feeding of Digital Labor Housing Wire webinar recap featuring Capacity & Sales Boomerang: Building the One-Touch Digital Mortgage Capacity E-Book: A Deeper Dive Into Capacity's Success Metrics Media... Sales Boomerang EPO Rap Video: LoanLogics IDEA™ Benefits of Data Extraction & Automation Top Headlines…
LendingQB® & OptiFunder Announce New Technology Integration Partnership MBA Annual Mortgage Executive Survey, sponsored by MGIC Black Knight: Smaller Metro Areas See Similar Market Conditions to Big Cities Deliotte 2020 Technology Fast 500 Includes TMC Preferred Partners #82 Total Expert & SimpleNexus #143 SocialSurvey Announces Major Partnership to Support CX Platform First American Docutech Presents: Accelerate Closings Playbook PHOENIX - October Market Snapshot Fannie Mae & Freddie Mac Announce Conforming Loan Limit Increase of 7.5% for 2021 Telemetry MBI Business Intelligence Platform Brings Performance Metrics & Analytics to Tax and Accounting Firm’s Clients Thought Leadership… Plaza Home Mortgage CEO & Co-Founder, Kevin Parra: What Drives Plaza's Success? Vice Capital Markets Principal, Chris Bennett: Peak Pipeline Management Take More than Commitment Blend Head of Customer Success, Barry May: Digital Agility Isn't a Temporary Solution First American Docutech Operations Counsel & SVP of Compliance, Fred Gooch: Key Considerations When Deploying eClose Technology Triserv President Joe Bryant: Flexibility in Appraisal Types is Key in 2020 Blog… Leverage LendingQB's LOS to Fulfill Your Customer Needs PHOENIX: Do You Have a Diligence Partner You Can Rely On? LoanLogics Infographic: QC Report Builder Arch MI Policy Cast: Looking for a Way Out for the GSE's Capacity: How Capacity Stands Up to Expectations in the Face of Objections MQMR: Weekly FAQ: FNMA Quality Control Requirements Personnel Announcements… Planet Home Lending Promotes Dalila Ramos to Vice President of Talent Acquisition Black Knight Appoints Ryan Hallett as Chief Risk Officer Stewart Title Taps Lee Wilson as Director of OperationsMedia… LoanLogics radiologics podcast: MERS® Annual 3rd Party Review Blend podcast: The Benchmark - Episode 5 with Ryan Atkins of IBERIA Bank Arch MI PolicyCast: Why Housing is Booming While Economy Busts Events… JamForACure - Now Live On-Demand! |
Rich Swerbinsky
TMC - Chief Operating Officer Archives
January 2021
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