Purpose of the study

Maximizing the potential profitability of retail mortgage lending by exploring best practices of utilizing both retail channels

Methodology

Collect data origination channel profitability data from lenders and compare it with servicing data collected from the same group of lenders in MGIC’s LenderLandscape

Discussion Issues

• How to generate leads from the parent bank
• How to improve retention
• How to cross sell bank products, especially deposits
• Loan officer expense compensation and reimbursement policies
• Fulfillment management
• Effectively scaling operations for volume growth
• Use of centralized sales

Key Study Metrics

• Total FTEs compared with closings
• Total personnel cost relative to total closings
• Sales compensation cost relative to total closings
• Average sales compensation expense per loan officer
• Average numbers of days from application to closing
• Fulfillment cost relative to applications
• Calls per call seat
• Call to application ratio
• Pull through
• Loans per fulfillment staff
• Span of control for sales and fulfillment
• Other metrics deemed important by participants

Deliverables

Analysis of the trends and variances between peers

• Report Layout
• Table of Contents from the most recent benchmark study
• Overview
• Volume
• Revenue
• Sales Expense
• Fulfillment Expense
• An overview of all direct expenses, non-personnel direct expenses and division profit

Meeting with peers to discuss findings and best practices
(May 18-20, 2010 in Milwaukee)
Comparison of origination profitability with retention statistics from Lender Landscape

For more information, please contact:
Christine Clifford: (240) 423-8390 • cclifford@accessmrc.com