Better Know the Cost to Produce a Loan; Smoldering Non-agency Security Market; LO Earnings

Hot news from AZ Home Help:

Posted To: Pipeline Press

Do you know what it costs your company to produce a loan? I hope so, because if the president of a lender wants to do more business in 2013 , or merely to maintain market share, they're going to need to know the cost to produce a loan since margins are expected to drop significantly . And originating loans at more than your gain is not a long term plan. In my experience, banks are much better at setting budgets and knowing margins than mortgage banks or brokers, but management will need to be aware of exactly how low their margins can go before cutting overhead. And if your company was carrying below-average producers on the payroll in 2012, there is not much reason to think their productivity will skyrocket in 2013 (see comp story below). With all this refi business going on, yes, those borrowers...(read more)

Forward this article via email:  Send a copy of this story to someone you know that may want to read it.

Source: http://www.mortgagenewsdaily.com/channels/pipelinepress/02222013-picasso-s-napkin-lo-earnings.aspx

- For more real estate news visit our website at http://www.AzHomeHelp.com