Wednesday, April 6, 2011
The Stay Is Over
Well April 1 turned into April 6 and the hope was pretty short-lived. All new LO compensation schedules and rate sheets were rolled out today, or should've been!!! Think that was the hard part? I wonder how many bankers thought this whole change through. How will weighted average margins be affected? (i.e. NET revenue) Were lock policies and guidelines updated? I sure hope so. Were margins updated and how so? I see costs increasing and therefore rates which may translate to non-competitiveness in the market! No? The bankers who kept everything status quo will see their revenue plummet in the coming months. Striking the right balance is a delicate dance. How about the wholesale channel - brokering loans out and taking in TPO files. What a mess. Dozens of custom rate sheets, originating loans at losses, ensuring partners are compliant and don't get me started on the safe harbor nightmares - I still haven't heard one solid plan from any originator for that. Who's modeled out the implications here? Nobody is immune!!! -If margins (and rates) aren't up, they're down; either way volume and revenue will see a change. -Limit options for sales and both volume and fees tighten -Think loan officers have their head in the game? We're not even a week into April and I've heard from dozens of LOs looking to make moves and exit the mortgage game. Some will struggle, others will succeed. I see a bright future for only those with their eyes wide open.