Business, Free News Articles, Reports and Studies

SimpleNexus’ Mortgage Loan Compensation Report for Q3 2021 shows year-over-year decline in individual LO commission led by waning refi volume

LEHI, Utah -- SimpleNexus, owner of the recently acquired LBA Ware™, a leading provider of incentive compensation management (ICM) and business intelligence (BI) software solutions for the mortgage industry, today released summary statistics on the state of mortgage industry loan compensation in the third quarter of 2021. Analysis of data from the CompenSafe™ ICM platform showed that declining loan volume in Q3 2021 compared to Q3 2020 pushed quarterly loan originator (LO) commission earnings down 17%. Over the same period, mortgage lenders increased loan processor staffing by roughly a quarter while funding fewer loans, driving average individual processor incentive compensation down by a third.

Methodology

SimpleNexus' LBA Ware team reviewed account data for mortgage lenders who used CompenSafe to automate incentive compensation throughout the third quarters of both 2020 and 2021. 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, 2021, and ending September 30, 2021.

Key Findings
* Monthly commissions earned per LO in Q3 2021 decreased 17% overall from Q3 2020. Monthly refinance commissions decreased 37%, accounting for most of the shortfall, while monthly purchase loan commissions held relatively steady, rising just 2%.

* Overall, LOs saw a 2.44% decrease in per-loan commission rates from 102.878 basis points (BPS) in Q3 2020 to 100.372 BPS in Q3 2021. Notably, lenders dialed down per-loan commission rates on refinances by 7.17%, from 95.210 BPS in Q3 2020 to 88.384 BPS in Q3 2021. BPS paid out on purchase loans decreased 1.58% from 109.838 to 108.102.

* LOs averaged $2.2M in funded volume per month in Q3 2021, a decrease of 14.9% from Q3 2020 ($2.6M). Purchase volume funded by individual LOs increased 4% from $1.4M in Q3 2020 to $1.5M Q3 2021, and refinance volume declined 32% from $1.3M to $0.9M during the same period.

* LO staffing levels held relatively steady from Q3 2020 to Q3 2021, dipping just 2%. Simultaneously, loans funded per LO per month decreased 22%, with LOs in the sample set averaging 9.0 loans a month in Q3 2020 versus 7.0 loans a month in Q3 2021.

* Loan processor staffing grew 23% from Q3 2020 to Q3 2021. Loan processors averaged 29% fewer loans per month in Q3 2021 (15.2 units) compared to Q3 2020 (21.5 units), fueling a 33% decrease in quarterly bonus compensation earned from $3,201 per processor per month in Q3 2020 to $2,140 in Q3 2021.

"The heyday of ultra-low rates and enormous refinance volume is over, and compensation is starting to settle back to pre-pandemic levels. On the bright side, 2021 is still shaping up to be the second-highest production year in the last decade, with modest growth in the purchase market helping take the edge off declining refinance volumes," said SimpleNexus EVP and General Manager Lori Brewer. "We will be watching to see if lenders reduce headcount or take a more conservative approach to incentive comp to protect margin."

About SimpleNexus, LLC:

Founded in 2011, SimpleNexus is an award-winning developer of mobile-first technology for the modern mortgage lender. Lenders depend on our namesake homeownership platform to unite the people, systems and stages of the mortgage process into a seamless, end-to-end solution that spans engagement, origination, closing and business intelligence. By helping lenders manage their teams and stay connected with borrowers and real estate partners, we deliver a measurable return on investment in the form of reduced turn times, increased loan application submissions and more referral business. A four-time Inc. 5000 company, SimpleNexus has been recognized as one of the world's Best Workplaces for Innovators. For more information, visit https://www.simplenexus.com/ or follow @SimpleNexus.

Related link: https://simplenexus.com/

This news story was published by the Neotrope® News Network - all rights reserved.

Business, Free News Articles, Software

LBA Ware welcomes mortgage compliance expert Lyndal McLaughlin to CompenSafe implementation team

MACON, Ga. -- LBA Ware™, a leading provider of incentive compensation management (ICM) and business intelligence (BI) software solutions for the mortgage industry, today announced that mortgage industry expert Lyndal McLaughlin has joined its team as a software implementation consultant. In this role, McLaughlin will train and assist lenders as they implement LBA Ware's incentive compensation management (ICM) platform CompenSafe™ to its full capabilities, giving them unrivaled control over their variable compensation plans and processes.

McLaughlin has over 30 years experience in the mortgage industry, first launching her career as a receptionist at a mortgage lender. McLaughlin went on to gain experience in loan origination, processing, underwriting, closing and operations, making her an exceptionally well-rounded player in her field. Most recently McLaughlin served as a compliance product implementation manager for lending compliance risk software company QuestSoft.

"Lyndal possesses an impressive breadth of practical knowledge of the mortgage industry and enthusiasm for supporting clients as they roll out new software," said LBA Ware Founder and CEO Lori Brewer. "Her expertise makes Lyndal a valuable addition to the LBA Ware team. I know she will be an asset to our clients as they seek to maximize the benefits they receive from CompenSafe."

As a software implementation consultant McLaughlin will train LBA Ware clients to use CompenSafe to create more efficient compensation plan management processes, monitor those plans, centralize plan data and effectively communicate the calculation of commissions and bonuses to incentive-eligible employees, giving them full transparency into their pay.

"Given the extremely wide variety of compensation plans that mortgage companies oversee, managing payroll can be a real hassle," said McLaughlin. "That's why I'm thrilled to be working with LBA Ware, a company that offers clients a flexible, automated solution for managing incentive compensation."

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 2021 Inc. 5000 fastest-growing private company, LBA Ware is headquartered in Macon, Georgia. For more information, visit https://www.lbaware.com/.

Twitter: @LBAWare #mortgagelending #mortgagetrends #mortgageindustry

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

This news story was published by the Neotrope® News Network - all rights reserved.

Business, Free News Articles, Software

LBA Ware taps STRATMOR Group alum Angie Middlebrook for mortgage software implementation role

MACON, Ga. -- LBA Ware™, a leading provider of incentive compensation management (ICM) and business intelligence (BI) software solutions for the mortgage industry, announced it has added mortgage industry expert Angie Middlebrook as a software implementation consultant. In this role, Middlebrook will assist lenders as they implement LBA Ware's LimeGear™ BI Platform and ICM platform CompenSafe™ to its full capabilities, advancing them beyond the implementation stage to maximize use of LBA Ware's software solutions.

Middlebrook's software expertise stems from eight years as a STRATMOR Group senior analyst, where her responsibilities ranged from developing data products, compensation strategies and industry studies. Middlebrook worked closely with lenders to increase study participation and analyze data. Prior to STRATMOR Group, Middlebrook was the director of client services at Motivity Solutions, where she worked closely to train clients and instill new capabilities to meet their business objectives.

In addition to Middlebrook's software and analytic background, she launched her career in the mortgage industry as a closer.

"Angie's passion for software gives her a unique edge in helping lenders create efficiencies and grow their businesses," said LBA Ware Founder and CEO Lori Brewer. "Her blend of experience in client services and software development, plus her background in mortgage, makes her a great addition to LBA Ware."

"I've always had a passion for teaching others how to make technology work for them," said Middlebrook. "With my mortgage and software background I completely understand what is happening behind the scenes and how valuable LBA Ware's compensation and business intelligence solutions are."

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 #mortgageindustry #mortgagetechnology #mortgagelending #peoplemovers

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

This news story was published by the Neotrope® News Network - all rights reserved.

Business, Free News Articles, Software

Michigan First Credit Union Implements CompenSafe by LBA Ware to Facilitate Mortgage Lending Division Growth

MACON, Ga. -- LBA Ware™, a leading provider of incentive compensation management (ICM) and business intelligence (BI) software solutions for the mortgage industry, today announced that Michigan First Credit Union (Michigan First) has implemented LBA Ware's ICM platform CompenSafe™ to automate incentive compensation for its mortgage division's 40+ loan originators (LOs) and loan originator assistants (LOAs). After a record-setting 23-day implementation period, Michigan First deployed CompenSafe to automate monthly incentive compensation for its LOs and LOAs and is currently working on rolling it out for its operational staff.

Holding $1.4 billion in total assets, Michigan First is an open credit union serving 175,000 members that live or work in the state of Michigan. Michigan First introduced mortgage lending as a member service in 2014, and originates, underwrites and services all of its mortgage loans in-house. The credit union has substantially grown its mortgage lending division each year, closing 2,000 mortgage loans representing nearly $500 million in volume in 2020.

"I selected CompenSafe to streamline Michigan First's incentive compensation because its efficiency enables us to quickly scale to growth and its flexibility enables us to develop custom incentive compensation plans that motivate our mortgage team to build strong relationships with members," said Michigan First Chief Mortgage Lending Officer Dan Sugg, CMB. "In addition to saving us time, money and energy, CompenSafe provides unparalleled transparency into the compensation process. LOs and sales team leaders frequently check their CompenSafe dashboard for pay and productivity updates as loans move through the pipeline."

CompenSafe is the only ICM platform purpose-built for mortgage lenders. By integrating directly with mortgage loan origination systems (LOSs), CompenSafe automatically calculates commissions and bonuses as loans fund in near real-time. In addition to freeing lenders from the error-prone, time-consuming process of managing incentive compensation with spreadsheets, CompenSafe tracks and time-stamps all commission transactions, creating a comprehensive audit trail for CFPB compliance.

"Credit unions seeking to forge stronger ties with members through mortgage lending benefit from automating the burdensome chore of managing incentive compensation so they can focus on what matters most: the member experience," said LBA Ware Founder and CEO Lori Brewer. "LBA Ware understands that empowering lenders with the latitude to develop specialized incentive compensation structures helps motivate loan teams to meet productivity goals and deliver a better member experience. We're honored that Michigan First has selected CompenSafe to facilitate its mortgage lending division's growth."

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.

About Michigan First Credit Union:

With over $1.3 billion in assets, Michigan First Credit Union has represented financial stability to its members since 1926 and now serves over 175,000 area residents and businesses. The credit union continues growing strong by providing the best in financial products and services to its valued members. Learn more at www.michiganfirst.com.

Twitter: @LBAWare #CompenSafe #creditunion #mortgagelending

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

This news story was published by the Neotrope® News Network - all rights reserved.

Business, Free News Articles, Reports and Studies

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

MACON, Ga. -- 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

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

This news story was published by the Neotrope® News Network - all rights reserved.

Business, Free News Articles

LBA Ware Recruits Kim Schnieders to Propel Sales Strategy, Accelerate Rapid Business Growth Among Mortgage Bankers

MACON, Ga. -- LBA Ware(TM), a leading provider of incentive compensation management (ICM) and business intelligence (BI) software solutions for the mortgage industry, announced today it has hired sales executive Kim Schnieders as senior sales consultant. Schnieders will support the expansion of LBA Ware's business development strategy during its rapid growth, driving revenue and supporting the influx of mortgage lenders implementing its award-winning technology.

With more than 20 years in C-Suite sales and account management, Schnieders brings to LBA Ware acute insight from her experience in the mortgage and technology sectors. Previously a sales and business development executive with mortgage risk management and compliance services provider MQMR, Schnieders has a proven track record of success managing sales cycles from lead generation to contract execution to help companies increase market share and revenue growth. Schnieders has also held management- and executive-level positions at QuestSoft, Calyx Software and Bank of America.

"Our industry is built on trust and collaboration, so Kim's ability to forge strategic partnerships and champion sales immediately caught our eye," said LBA Ware Founder and CEO Lori Brewer. "We proudly entrust her to nurture our client relationships, cultivate new opportunities and deliver on LBA Ware's excellent client experience standards."

In her new role, Schnieders will identify and capture strategic client accounts matching LBA Ware's key business objectives, expanding reach and demand for its LimeGear(TM) and CompenSafe(TM) products. Developed specifically 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. LimeGear is a turnkey business intelligence platform that enables mortgage lenders to deploy unified data strategies across their organizations for actionable insights into productivity and efficiency.

"Learning to think like a mortgage banker is the obvious secret to earning their trust, so I have made it my mission to dive deep into what matters most to my clients," said Schnieders. "Lending executives need visibility into analytics central to their success, such as LO performance and problems looming in their loan pipelines. I am thrilled to be part of an organization that is committed to supporting lenders' drive for operational excellence."

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 2020 Inc. 5000 fastest-growing private company, LBA Ware is headquartered in Macon, Georgia. For more information, visit https://www.lbaware.com/.

Twitter: @LBAWare #mortgageindustry #mortgagetechnology #mortgagelending #peoplemovers

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

This news story was published by the Neotrope® News Network - all rights reserved.

Business, Free News Articles, Software

LBA Ware Signs RWM Home Loans as 100th Mortgage Lender Client Amid Continued Growth

MACON, Ga. -- LBA Ware(TM), a leading provider of incentive compensation management (ICM) and business intelligence (BI) software solutions for the mortgage industry, today welcomed its 100th CompenSafe(TM) client, RWM Home Loans. The San Diego-based independent mortgage bank is rolling out the mortgage-industry-specific platform to manage incentive compensation for its 100 loan originators (LO) and other recipients of variable compensation.

The announcement comes during a period of strong growth for LBA Ware. In the first half of 2020 alone, CompenSafe calculated commissions for over $100 billion in funded loan volume. Since its inception, CompenSafe has calculated over $8 billion in loan compensation.

"Entrepreneurship is a deeply embedded value at RWM Home Loans. We offer not only LOs but also operations and fulfillment staff the opportunity to earn performance-based incentives," said RWM Home Loans Director of Corporate Development Taylor Sims. "The whole team is excited about being able to view bonuses, commissions and draw balances the same day a loan is funded rather than waiting for twice-monthly reporting."

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. Before CompenSafe, Sims' team at RWM Home Loans was exporting production data from the firm's loan origination system and then manually keying commission calculations into its accounting software. The process was so time-consuming that it was impossible to communicate compensation information more than a couple days ahead of each payday. Calculating and communicating quarterly non-discretionary bonuses was even more arduous.

"After especially strong growth over the last five years - including a substantial increase in loan volume in 2020 - it became clear that we needed an incentive compensation solution better aligned with our organizational focus on automating non-client-facing activities," Sims said. "I know CompenSafe will save my team a tremendous amount of time. Motivating RWM Home Loans employees with immediate visibility into their earnings is the cherry on top."

"We are delighted to welcome RWM Home Loans to the CompenSafe family," said LBA Ware Founder and CEO Lori Brewer. "Our century client is a significant milestone and a testament to the lasting relevance of LBA Ware as a provider of innovative software solutions that deliver necessary and meaningful results to mortgage lenders."

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 2020 Inc. 5000 fastest-growing private company, LBA Ware is headquartered in Macon, Georgia. For more information, visit https://www.lbaware.com.

About RWM Home Loans:

Headquartered in San Diego, RWM Home Loans is a direct lender serving local customers throughout the West Coast and Southwestern United States. Founded in 1994 by career mortgage professionals Brad and Susanne Livingston, RWM Home Loans has closed over 10,000 mortgage transactions with a focus on consistently offering the lowest possible rates and fees and treating our clients with honesty and integrity. For more information, visit https://www.rwmloans.com.

Twitter: @LBAWare @RWMILoans #mortgageindustry #mortgagetechnology #mortgagelending

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

This news story was published by the Neotrope® News Network - all rights reserved.

Business, Free News Articles, Reports and Studies

LBA Ware Issues Q2 2020 Mortgage Loan Originator Compensation Report

MACON, Ga. -- 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

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

This news story was published by the Neotrope® News Network - all rights reserved.

Business, Free News Articles, Reports and Studies, Software

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

MACON, Ga. -- 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.

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

This news story was published by the Neotrope® News Network - all rights reserved.

Business, Free News Articles, Reports and Studies

LBA Ware Issues Q1 2020 LO Compensation Report

MACON, Ga. -- 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

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

This news story was published by the Neotrope® News Network - all rights reserved.