With the Summer behind us, the industry has another few weeks before the holiday season hits and business slows...before you know it, January here we come!
I know it may seem to be dated news by now but what the heck happened to all the yapping and stress relating to the regulations on originator compensation slated for 1/1/11? I can't help thinking that this announcement received immediate response, mostly from top originators and some managers and owners. Once the headlines disappeared, so did their stress, and back to business. With rates at all time lows, why focus on regulation 5 months out.
The headlines will be back. I'm no Nostradamus but come late November-December this will be a hot topic once again. If originators want to keep their heads down and think of nothing but origination's until the end of Q4, that's fine - but owners and managers better put their thinking caps on sooner rather than later.
Comp plans, rate sheets and business models will all be given an "Extreme Makeover" but unlike the ABC show, this will certainly take more than 7 days from start to finish and not everyone is going to fall in love with the final product. Top originators (and others) will have concern over whether this business is still right for them - this is always dangerous as top originators must always keep their head in the game. Bottom line here is these updates will pose significant questions for bankers and may dramatically affect their P&Ls.
Start thinking now, before it's too late.