Lender’s commission decreased by 1.8 bp. in the second quarter, while refinancing fell 35% and purchases rose 50%.
MACON, GA, July 27, 2021 (SEND2PRESS NEWSWIRE) – LBA Ware ™, a leading provider of compensation management (ICM) and business intelligence (BI) software solutions for the mortgage industry, today released summary statistics on the state of the mortgage industry. loan compensation in the second quarter of 2021. Analysis of CompenSafe ™ ICM platform data showed that despite a slight increase in loan volume from Q2 2020 to Q2 2021, quarterly commissions per LO declined. Over the same period, loan processor workload and premium compensation declined by about a quarter.
LBA Ware analyzed account data for mortgage lenders who used CompenSafe to automate incentive compensation during the second quarter of 2020 and 2021. A controlled sample of data consisted of retail, receiving first collateral from fixed assets and credit processors with at least six funded loans over a three-month period starting March 31, 2021 and ending June 30, 2021.
Commissions received per lender (LO) in the second quarter of 2021 decreased by 6% compared to the second quarter of 2020. Over the same period, the volume of loans per lender decreased by an average of 4%. The average funded refinancing volume of USD 0.9 million per month decreased by more than 36% compared to the second quarter of 2020 (USD 1.4 million), and they gained an average of 91.679 basis points (BPS) per one refinancing loan, which is 6.94% less than the average. 98,517 BPS in Q2 2020. Purchases grew 49% year-over-year, with individual purchase loans averaging $ 1.52 million per month (41% more than $ 1.08 million financed per LO in Q2 2020) and received an average of 107.649 BPS per purchase loan (vs. 108.836 in Q2 2020). Overall, LO declined 1.76% in loan fees from 103.119 BPS in Q2 2020 to 101.308 BPS in Q2 2021. The LOs in the data sample collected an average of $ 2,876 in loan fees, or roughly 35% of $ 8,243. the cost of obtaining a retail loan according to the Mortgage Bankers Association for 2020 *. Credit bureau staff grew significantly (49%) from Q2 2020 to Q2 2021. Credit processors processed 27% fewer loans per month in the second quarter of 2021 (15.7 units) compared to the second quarter of 2020 (21.7 units), resulting in a corresponding 26% decrease in the quarterly bonus. compensation received from $ 2,684 per processor per month in the second quarter of 2020 to $ 1999 in the second quarter of 2021. “OSs continue to benefit from a strong purchasing market, supported by low rates, flexible work options and the relocation of millennials from their parents’ homes. If the macroeconomic environment remains stable in the second half of 2021, the OS could have another significant year, ”said LBA Ware founder and CEO Laurie Brewer. “Another notable observation is that lenders increased the number of processors nearly ten times faster than they added LO in the second quarter. It remains to be seen whether this level of staffing will be sustainable over the long term. ”
* Source: Mortgage Bankers Association Week Schedule for July 23, 2021: https://www.mba.org/news-research-and-resources/research-and-economics
About LBA Ware ™:
LBA Ware is a leading provider of cloud-based software for mortgage lenders. Since 2008, LBA Ware has been committed to helping mortgage companies reach new heights with software that connects data, drives productivity and inspires results. Today, more than 100 lenders of all sizes, including some of the nation’s leading mortgage companies, use the award-winning LBA Ware technology to serve lenders better and maximize the human potential in their organizations. LBA Ware is the fastest growing privately-owned company of 2020 and a 5000 Inc. headquartered in Macon, Georgia. For more information visit https://www.lbaware.com/.
Twitter: @LBAWare #mortgageindustry #mortgagetechnology # mortgage lending
NEWS SOURCE: LBA Ware
This press release has been issued by Send2Press® Newswire on behalf of a news source (LBA Ware) who is solely responsible for its accuracy. Information believed to be accurate but not guaranteed. Story ID: 73778 APDF-R8.2
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