Volume finally started to tail off in July for the members of The Mortgage Collaborative that use our valuable network data benchmarking tool. Closed loan units dropped by 20% from June to July as the impacts of a saturated refinance market and an inventory starved purchase market finally started to reveal themselves in the production figures. This was the lowest production month for our members since March of 2020, a month that will always be synonymous with the start of the spread of the COVID-19 pandemic. It's very rare in this industry to see July as the low water mark for closings for the year, but little has been normal in our industry since the pandemic hit.
The 20% drop in closings unsurprisingly mirrored the roughly 20% fall off in applications taken as we moved from the surprisingly busy first quarter. The mix of products stayed the same (74% conventional, 20% govie, 6% other) but business continues to trend more purchase-heavy, with closings increasing from 65% in June to 67% in July. We've seen the purchase share of closed loan units rise five months in a row now:
February 2021: 40%
March 2021: 45%
April 2021: 56%
May 2021: 62%
June 2021: 65%
July 2021: 67%
July new applications taken also fell by 14% from June's totals, but remember, June new app totals jumped up a bit from April & May.
Operational efficiency figures waned in July for the TMC network and we've seen these figures bounce around in the same general range this spring and summer. The number of closed loan units closed per full-time processor dropped to 10.7 in July versus the 11.6 June total. Closed loan units per full-time underwriter fell to 33.6 from 37.1 the month prior. Closed loan units per full-time closer decreased to 35.9 from 41.6. The average loan originator closed 5.8 units in July, down from 6.6 in June. LO comp came in at an average of 93.8, up 1.6 bps from last month's 92.2 total. Average LO comp has been in the low 90's all spring after averaging in the high 90's all of last year and into the early part of this year.
After peaking in the summer, subsiding in the fall, and plummeting in April ... average annual compensation paid to operational staff bounced around in July. On average, processors in our network were paid an average of $53,900 annually in July while underwriters spiked up to $90,500, with closers at $52,600.
The average "app date to clear to close date" bumped up to 43.2 days in July from 41.8 days in June. Let's take a look at how this number has trended throughout the course of the last year:
The average cost per closed loan unit our members paid for their loan origination system came in at $126 in July, spiking $9 from the month prior. The average cost per closed loan unit for our members point-of-sale (POS) system was $54 in July and $86 for their CRM, unchanged from the month prior.
56% of this month's participants in TMC Benchmark were depositories and 44% were IMB's. 40% originate under $500M a year in annual volume, 25% originate between $500M-$1B, and 35% originate over $1 billion per year in annual production.
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The Mortgage Collaborative
TMC - Chief Operating Officer