The current compensation and performance model for Loan Originators across the U.S. is about to undergo a seismic transformation, according to mortgage executives attended the Western Secondary Mortgage Conference this week in San Francisco, CA. Over thirty (30) top executives were asked about LO performance targets in terms of closed loans per quarter and median compensation per loan. Responses varied by geography, business model and level of marketing support. For example, the average target for a standard west coast LO who generates his/her own business was between 5 to 9 loans per quarter, whereas retail operations with strong lead generation engines had targets that were twice that high. Compensation also varied widely by region, with average LO’s receiving 125 basis points per loan or less in some western metropolitan areas to over 200 basis points in parts of the Southeast where Average Loan Values are low.
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As a mortgage banker, each day you are faced with countless critical decisions that determine the profitability of your company.
Here are just a few...