Tag Archives: mortgage trends

LBA Ware Issues Q4 2020 Loan Compensation Report, Includes Summary of 2020 Loan Originator Commission Trends

MACON, Ga. /ScoopCloud/ -- LBA Ware™, a leading provider of incentive compensation management (ICM) and business intelligence software solutions for the mortgage industry, today released summary statistics on the state of mortgage industry incentive compensation in the fourth quarter of 2020 and loan originator (LO) commissions for the year as a whole. The firm's analysis of data from its CompenSafe™ ICM platform shows that robust refinance and purchase loan volume in Q4 contributed to markedly higher earnings for both LOs and loan processors in 2020 when compared to the same period in 2019.

Methodology

LBA Ware reviewed account data for mortgage lenders who used CompenSafe to automate incentive compensation throughout the fourth quarters of 2019 and 2020. The controlled, sample dataset consisted of retail, first-lien production from LOs and processors with at least six funded loans during the three-month period beginning October 1, 2020, and ending December 31, 2020. LBA Ware also reviewed full 2020 calendar-year production for the same sample dataset.

Q4 2020 Key Findings

* Total loan volume funded increased 106% in Q4 2020 compared to Q4 2019.
* LO headcount increased 27% year-over-year.
* Average individual production in Q4 2020 was $2.6M per month, an increase of 63% from $1.6M in Q4 2019.
* Per-loan LO commissions held relatively steady, decreasing 0.2% from 105.4 basis points (BPS) in Q4 2019 to 105.2 BPS in Q4 2020.
* Purchase volume grew 71% year-over-year with LOs averaging $1.35M in funded purchase loans per month in Q4 2020 (a 38% increase from $0.98M in Q4 2019) and receiving on average 111.1 BPS per purchase loan (up from 109.1 BPS in Q4 2019).
* Refinance volume grew 158%, accounting for 51% of total volume funded in Q4 2020 (versus only 41% of total volume funded in Q4 2019). LO commissions on refinance loans remained steady at 99.3 BPS in Q4 2020 compared to 99.2 BPS in Q4 2019.
* Processor headcount increased 51% year-over-year, allowing this group to handle 99% more loan files in Q4 2020 compared to Q4 2019.
* Per-loan bonus compensation earned by processors increased 21% to $128 per loan in Q4 2020 ($106 in 2019), earning processors an average production bonus of $2,503 per month ($1,569 in 2019).

2020 Loan Originator Commission Trends

* On average, LOs funded $20.4M in annual volume in 2020, with transactions split evenly at 50% purchase loans, 50% refinance loans.
* Per-loan commissions earned by LOs in 2020 averaged 105.5 BPS, with refinance loans averaging 100.2 BPS and purchase loans averaging 110.6 BPS.

"Low interest rates flamed an increased demand for mortgage activity, which in turn benefited LOs and processors. They were rewarded for their long hours with robust compensation checks," said LBA Ware Founder and CEO Lori Brewer. "As rates are predicted to rise in 2021 and for several years to come, loan teams that wish to maintain their earnings would do well to put a strategy in place that enables them to offset waning refi volume with more purchase volume."

About LBA Ware™:

LBA Ware is a leading provider of cloud-based software for mortgage lenders. Since 2008, LBA Ware has been on a mission to help mortgage companies reach new heights with software that integrates data, incentivizes performance and inspires results. Today, more than 100 lenders of all sizes, including some of the nation's top producing mortgage companies, use LBA Ware's award-winning technology to enhance lender experiences and maximize the human potential within their organizations. A 2020 Inc. 5000 fastest-growing private company, LBA Ware is headquartered in Macon, Georgia. For more information, visit https://www.lbaware.com.

Twitter: @LBAWare #CompenSafe #mortgagetrends #LOcompensation

LBA Ware™, a leading provider of incentive compensation management (ICM) and business intelligence software solutions for the mortgage industry, today released summary statistics on the state of mortgage industry incentive compensation in the fourth quarter of 2020 and loan originator (LO) commissions for the year as a whole.

Related link: https://go.lbaware.com/

LBA Ware Issues Q3 2020 Mortgage Loan Originator Compensation Report, Enhances Analysis with Addition of Loan Processor Compensation Data

MACON, Ga. /ScoopCloud/ -- LBA Ware(TM), a leading provider of incentive compensation management (ICM) and business intelligence software solutions for the mortgage industry, today released summary statistics on the state of mortgage industry compensation in the third quarter of 2020. The firm's analysis of data from its CompenSafe(TM) ICM platform shows that year-over-year increases in refinance and purchase loan volume contributed to increased commissions for both loan originators (LOs) and loan processors.

Methodology

LBA Ware reviewed account data for mortgage lenders who used CompenSafe to automate incentive compensation throughout the third quarter of 2020. The controlled, sample dataset consisted of retail, first-lien production from LOs and loan processors with at least six funded loans during the three-month period beginning July 1, 2020, and ending September 30, 2020.

Key Findings

* Commissions earned by LOs in Q3 2020 increased 50% from Q3 2019, because the average LO funded 51% more volume in Q3 2020 ($2.6M per month) versus Q3 2019 ($1.7M per month).

* Refinance transactions accounted for 46% of total volume funded in the quarter (versus only 36% of total volume funded in Q3 2019). LOs averaged $1.2M in funded refinance volume per month, an increase of more than 75% over Q3 2019.

* Although paychecks were larger in Q3 2020 than Q3 2019, the uptick in refinance production contributed to a 0.9% decrease in per-loan commissions from 107 basis points in Q3 2019 to 106 basis points in Q3 2020. Refinance commissions averaged 100 basis points in Q3 2020 compared to 111 basis points paid out for purchase loans.

* Purchase volume grew year-over-year with LOs averaging $1.45M in funded purchase loans per month ($1.11M in Q3 2019) and receiving on average 110.8 basis points per purchase loan (109.8 in Q3 2019).

* Loan processors handled 30% more loans per month in Q3 2020 compared to Q3 2019, fueling a 54% increase in average incentive compensation earned from $5,105 in Q3 2019 to $7,855 per processor in Q3 2020.

"Increased loan volume continues to deliver big paydays for loan originators as well as for loan processors, many of whom earn per-loan unit bonuses," said LBA Ware Founder and CEO Lori Brewer. "The refi boom won't continue indefinitely, though, and we're already seeing some softening in refi volume even as consumer appetite for purchase loans sharpened in Q3."

About LBA Ware(TM):

LBA Ware is a leading provider of cloud-based software for mortgage lenders. Since 2008, LBA Ware has been on a mission to help mortgage companies reach new heights with software that integrates data, incentivizes performance and inspires results. Today, more than 100 lenders of all sizes, including some of the nation's top producing mortgage companies, use LBA Ware's award-winning technology to enhance lender experiences and maximize the human potential within their organizations. A 2019 Inc. 5000 fastest-growing private company, LBA Ware is headquartered in Macon, Georgia. For more information, visit https://www.lbaware.com/.

Twitter: @LBAWare #CompenSafe #mortgagetrends #LOcompensation

LBA Ware, a leading provider of incentive compensation management (ICM) and business intelligence software solutions for the mortgage industry, today released summary statistics on the state of mortgage industry compensation in the third quarter of 2020.

Related link: https://go.lbaware.com/

LBA Ware Issues Q2 2020 Mortgage Loan Originator Compensation Report

MACON, Ga. /ScoopCloud/ -- LBA Ware(TM), a leading provider of incentive compensation management (ICM) and business intelligence software solutions for the mortgage industry, today released summary statistics on the state of mortgage industry compensation in the second quarter of 2020. The firm's analysis of data from its CompenSafe(TM) ICM platform shows significant refinance volume growth in Q2 2020 compared to Q2 2019 contributed to a 59% year-over-year increase in total loan originator (LO) commissions paid over the three-month period.

Methodology

LBA Ware reviewed account data for mortgage lenders who used CompenSafe to automate incentive compensation throughout the second quarter of 2020. The controlled, sample dataset consisted of retail, first-lien production from LOs who funded at least six loans during the three-month period beginning April 1, 2020, and ending June 30, 2020.

Key Findings
* Commissions earned by LOs in Q2 2020 increased 59% from Q2 2019, because the average LO originated and funded 63% more volume in Q2 2020 ($2.4M per month) versus Q2 2019 ($1.4M per month).
* Refinance transactions drove the market in Q2 2020, accounting for 56% of total volume funded in the quarter (versus only 21% of total volume funded in Q2 2019). LOs averaged $1.4M in funded refinance volume per month, an increase of more than 230% over Q2 2019.
* Although paychecks were larger in Q2 2020 than Q2 2019, the uptick in refinance production contributed to a 2.7% decrease in per-loan commissions from 108 basis points in Q2 2019 to 105 basis points in Q2 2020. Refinance leads are more likely to be company-generated versus self-sourced, so they tend to pay out at a lower rate than purchase loans, averaging 100 basis points in Q2 2020 compared to 110 basis points paid out for purchase loans.
* Purchase volume held steady year-over-year with LOs averaging $1.08M in funded purchase loans per month ($1.16M in Q2 2019) and receiving on average 109.9 basis points per purchase loan (109.7 in Q2 2019).

"In this year of bleak economic news, surging refinance volume and steady home purchase business have been bright spots. Low rates have fortified lenders' pipelines and put more money in originators' paychecks," said LBA Ware founder and CEO Lori Brewer. "LO commissions paid out during the three-month period are up 59% over 2019. I just hope some of that hard-earned money gets set aside for the rainy days that are bound to follow expected increases in unemployment and loan defaults."

About LBA Ware(TM):

LBA Ware is a leading provider of cloud-based software for mortgage lenders. Since 2008, LBA Ware has been on a mission to help mortgage companies reach new heights with software that integrates data, incentivizes performance and inspires results. Today, lenders of all sizes, including some of the nation's top producing mortgage companies, use LBA Ware's award-winning technology to enhance lender experiences and maximize the human potential within their organizations. A 2019 Inc. 5000 fastest-growing private company, LBA Ware is headquartered in Macon, Georgia. For more information, visit https://www.lbaware.com.

Twitter: @LBAWare #CompenSafe #mortgagetrends #LOcompensation

*IMAGE link for media: https://www.Send2Press.com/300dpi/20-0723s2p-lba-chart-300dpi.jpg

LBA Ware, a leading provider of incentive compensation management (ICM) and business intelligence software solutions for the mortgage industry, today released summary statistics on the state of mortgage industry compensation in the second quarter of 2020.

Related link: https://go.lbaware.com/

LBA Ware Publishes Findings of Top-10 Lender’s Compensation Automation Cost-Benefit Analysis

MACON, Ga. /ScoopCloud/ -- LBA Ware(TM), a leading provider of incentive compensation management (ICM) and business intelligence software solutions for the mortgage industry, today released the findings of a cost-benefit analysis quantifying one mortgage lender's expected return on investment after implementing CompenSafe(TM).

Built for the mortgage industry, CompenSafe is an automated ICM platform that bridges the gap between lenders' loan origination and payroll systems to eliminate manual data entry and provide actionable insight into staff performance and profitability.

Conducted by a top-10 U.S. mortgage lender, the comprehensive ROI analysis spanned five phases: (1) quantifying the company's current costs related to managing incentive compensation; (2) identifying opportunities for process improvement; (3) defining system requirements for compensation automation; (4) weighing the pros and cons of building an in-house solution against available off-the-shelf software; and (5) estimating the cost savings provided by the chosen solution, CompenSafe(TM).

The lender found it was spending $346,000 a year in labor costs directly attributable to the manual calculation of incentive compensation. In addition, the compensation team was spending untold hours each month answering employee questions, setting up new plans and preparing payroll files. The lender also estimated it was spending between $500,000 to $1 million per year in overpayments caused by manual errors in calculating incentive compensation. According to the lender's analysis, implementing CompenSafe will allow it to recoup an estimated $900,000 in annualized savings by automating manual tasks, eliminating redundant processes and reducing overpayments.

The full case study is available for download here.

About LBA Ware(TM):

LBA Ware is a leading provider of cloud-based software for mortgage lenders. Since 2008, LBA Ware has been on a mission to help mortgage companies reach new heights with software that integrates data, incentivizes performance and inspires results. Today, lenders of all sizes, including some of the nation's top producing mortgage companies, use LBA Ware's award-winning technology to enhance lender experiences and maximize the human potential within their organizations. A 2019 Inc. 5000 fastest-growing private company, LBA Ware is headquartered in Macon, Georgia.

For more information, visit https://www.lbaware.com.

LBA Ware, a leading provider of incentive compensation management (ICM) and business intelligence software solutions for the mortgage industry, today released the findings of a cost-benefit analysis quantifying one mortgage lender's expected return on investment after implementing CompenSafe.

Related link: https://go.lbaware.com/

LBA Ware Issues Q1 2020 LO Compensation Report

MACON, Ga. /ScoopCloud/ -- LBA Ware(TM), a leading provider of incentive compensation management (ICM) and business intelligence software solutions for the mortgage industry, today released summary statistics on the state of mortgage industry compensation in the first quarter of 2020. The firm's analysis of data from its CompenSafe(TM) ICM platform shows business grew significantly for lenders across Q1, culminating in March commission payouts that were the highest reported in the last six months.

Methodology

LBA Ware reviewed account data for mortgage lenders that used CompenSafe to automate incentive compensation management throughout the first quarter of 2020. The controlled, sample dataset consisted of retail, first-lien production from LOs who funded at least six loans during the six-month period ending March 31, 2020.

Key Findings

* The total number of loan units funded by the sample group increased by 58.5% from January to March. Over the same time period, total loan volume increased by 66.1%, which translated to an increase in average loan volume per LO from $1.17M in January to $1.85M in March. The portion of funded loan volume attributable to refinances reached 48% in March, an increase of 6% from January.

* Together, these unit and volume gains led to month-over-month increases in loan commissions earned of 14.2% from January to February and 46.9% from February to March.

* Overall, average commissions paid to LOs increased 1.1% from 104.0 basis points in January to 105.1 basis points in March. Broken out by loan purpose, LO commissions on refinances increased 3.1% (from 96.0 basis points in January to 99.0 basis points in March) compared to just 0.9% growth in purchase commissions (from 109.0 basis points in January to 110.1 basis points in March).

* The average March loan amount was $283,900, up from 2019's average of $259,652, helping LOs reach an average of $18,907 in total commissions for the month.

"Intense market demand for mortgages, including refis, helped loan originators earn average commissions approaching $19,000 in March," said LBA Ware founder and CEO Lori Brewer. "LOs may want to sock some of that payday away as the industry braces for a protracted economic recession, job losses and stiffer underwriting criteria."

About LBA Ware

LBA Ware(TM) is a leading provider of cloud-based software for mortgage lenders. Since 2008, LBA Ware has been on a mission to help mortgage companies reach new heights with software that integrates data, incentivizes performance and inspires results. Today, lenders of all sizes, including some of the nation's top producing mortgage companies, use LBA Ware's award-winning technology to enhance lender experiences and maximize the human potential within their organizations. A 2019 Inc. 5000 fastest-growing private company, LBA Ware is headquartered in Macon, Georgia. For more information, visit https://www.lbaware.com/.

*IMAGE link for media: https://www.Send2Press.com/300dpi/20-0417s2p-lba-2020-q1lo-300dpi.jpg

LBA Ware, a leading provider of incentive compensation management (ICM) and business intelligence software solutions for the mortgage industry, today released summary statistics on the state of mortgage industry compensation in the first quarter of 2020.

Related link: https://go.lbaware.com/

LBA Ware Releases 2019 LO Compensation Report

MACON, Ga. /ScoopCloud/ -- LBA Ware(TM), a leading provider of incentive compensation management (ICM) and business intelligence software solutions for the mortgage industry, today released summary statistics on the state of mortgage industry compensation in 2019. The firm's analysis of year-over-year data from its CompenSafe(TM) ICM platform reveals compelling trends about how mortgage lenders nationwide are managing commissions for loan originators (LOs).

Methodology

LBA Ware reviewed account data for mortgage lenders that used CompenSafe to automate incentive compensation management for the full calendar years 2018 and 2019. The controlled, sample dataset consisted of retail, first-lien production from LOs that funded at least six loans in one of the calendar years. The LO commissions were for a wide range of large and small lenders across the United States, comprised of 68 percent independent mortgage companies, 27 percent banks and 5 percent credit unions.

Key Findings
* The sample group funded significantly more loans in 2019 than 2018, with the total number of closed loans up 18.28% and total loan volume up 29.44% year-over-year. Together, these unit and volume gains resulted in an additional 31.42% in LO commissions paid in 2019 vs. 2018.

* The average base commission earned by LOs in 2019 was 93.912 basis points, on par with 2018's average of 93.114. After accounting for commission tiers and minimum/maximum caps, LOs earned an average of 102.089 basis points per loan in 2019 compared with 2018's average of 100.594 basis points, an average increase of 1.49 basis points per funded loan.

* The average 2019 loan amount was $259,652, up 9.43% year-over-year. This higher average loan amount helped push the average LO commission per loan from $2,332 to $2,591 (an 11.11% year-over-year increase).

* Loan originators continue to account for the lion's share of compensation expenses, with LO commissions accounting for 69% of lenders' total incentive compensation expenditure.

* Overall LO employment was nearly flat for our sample group from 2018 to 2019, with the total number of LOs on payroll down a mere 0.14% year-over-year.

"Despite speculation that lender efforts to reduce operational costs would include curbing loan originator commissions in 2019, our analysis shows that base commission for LOs did not significantly change from 2018 to 2019," said LBA Ware founder and CEO Lori Brewer. "This data implies that lenders may not get serious about reducing LO commissions until they're in significant financial pain, which isn't predicted to happen until later in 2020, when refinance volume is expected to wane."

About LBA Ware(TM):

LBA Ware is a leading provider of cloud-based software for mortgage lenders. Since 2008, LBA Ware has been on a mission to help mortgage companies reach new heights with software that integrates data, incentivizes performance and inspires results. Today, lenders of all sizes, including some of the nation's top producing mortgage companies, use LBA Ware's award-winning technology to enhance lender experiences and maximize the human potential within their organizations. A 2019 Inc. 5000 fastest-growing private company, LBA Ware is headquartered in Macon, Georgia. For more information, visit https://lbaware.com.

LBA Ware, a leading provider of incentive compensation management (ICM) and business intelligence software solutions for the mortgage industry, today released summary statistics on the state of mortgage industry compensation in 2019. The firm's analysis of year-over-year data from its CompenSafe ICM platform reveals compelling trends about how mortgage lenders nationwide are managing commissions for loan originators (LOs).

Related link: https://go.lbaware.com/