June was another very good month for the members of The Mortgage Collaborative that submit data to TMC Benchmark. As we head into the heart of summer, new applications and closed loan units continued to trend slowly upward and the mix of business continued to trend more towards purchase transactions.
Closed loan units were up 6% for our members in June versus May. After seeing a 20% drop off in closed loan units from March '21 to April '21, closings have now increased two months in a row for our network, up 1% from April to May and now up 6% from May to June. To paint a broader picture of the post-pandemic production climate, May '20 was the first ramped up closing month after an uneven start to last year. June '20 through October '20 were all massive months for closings. Closed loan production then decreased four months in a row from November '20 to February '21. Buoyed by waves of refinance applications in January and February, March '21 closings spiked then fell off 20% in April and now have slightly increased these past two months.
Purchase transactions as a share of total closings hit a three-year TMC Benchmark high in June of 66% in the month vs. the 62% total in May.
New application totals taken in June were also up slightly compared to the month prior, up 6%. For the third straight month, 20% of new apps taken were on government products, up from their more historical levels of 15-18%. 75% of new apps in June were on conventional products.
Operational efficiency figures bettered in June for the TMC network after waning the last few months as lenders made smart staff cuts while still closing 6% more transactions from the month prior. The number of closed loan units closed per full-time processor increased to 11.6 in June versus the 10.2 May total. Closed loan units per full-time underwriter increased to 37.1 from 34.3 the month prior. Closed loan units per full-time closer jumped to 41.6 from 39.1. The average loan originator closed 6.6 units in June, up from 6.0 in May. LO comp came in at an average of 92.2, down 1 bps from last month's 93.2 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 ticked up slightly for the second straight month. On average, processors in our network were paid an average of $56,600 annually in June while underwriters came in at $83,700, with closers at $52,100. Last month was the first time we've even seen processors be paid higher on average than closers and that continued in June.
The average "app date to clear to close date" ticked down from 45.7 days in April to 43.8 days in May to 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 $117 in June, up $1 from the month prior. The average cost per closed loan unit for our members point-of-sale (POS) system was $54 in June and $87 for their CRM.
55% of this month's participants in TMC Benchmark were depositories and 45% were IMB's. 37% originate under $500M a year in annual volume, 24% originate between $500M-$1B, and 39% originate over $1 billion per year in annual production.
President & Chief Operating Officer
The Mortgage Collaborative
TMC - Chief Operating Officer