The LO Down - Mortgage "Madness"

If you’re like me, you’re pretty excited for NCAA March Madness to begin.

Some say it’s the best sporting event of all-time.?I agree.?

The heart, the passion, the buzzer beaters, the upsets.?It’s a thrilling event.

For me though, the most fun part of it is filling out a bracket.

Confession, I don’t follow college basketball.?I know a few of the names because my San Antonio Spurs will be picking high in the draft, but that’s about it.

So, when it comes to filling out my bracket, I get some input from a few gambling dads that I know, but for the most part, I look at the data and stats, and make my best guess.

With the Mortgage Industry in the midst of its own version of “Madness,” I thought I would share a few stats and data points for you to consider when making your selections if you were to make a move.

1.??????Average Funded Units per Licensed Loan Originator (Points Per Game):

A lower number here could mean that the company does not have a strong track record of supporting higher volume Originators.?Take into account that every organization is going to have a healthy range of production per LO, but if the “average funded units” is on the lower side, then it may not be the best place for you if you are funding 50+ units a year.

2.??????Average Production Growth per Loan Originator (plus/minus):

The “plus/minus” stat measures a player’s impact on the score while they are on the court.?If the team scores more than their opponent while the player is in the game, then they are in the “plus” category, if they score less, “minus.”?Ask about the average growth a Loan Originator experiences after they have been with the company for 18-24 months (allowing for some down production during their initial transition).?This is a reflection of the company’s leadership, coaching, technology, marketing, and support.

3.??????Recruiting and Retention (Turnovers):

A company’s ability to recruit (create turnovers of their opposition) and retain (prevent turnovers of their own) should be taken into consideration.?If recruiting is not outpacing turnover, then that could mean less production, which could, in turn, lead to more layoffs in operations and create challenges for your business.

4.??????Turn Times (Offensive Efficiency)

In the industry today, UW turn times are typically 24-48 hours.?With slower production, it is not uncommon to see same day turn times.?But I have heard recently that some companies are 3-5 days out in UW.?Make sure you know what you’re getting into.?Longer turn times could lead to missed closing dates, upset borrowers, and lost referral partners.?Talk with Ops leaders, see demos of the LOS system, reach out to other Originators, and get the scoop.

5.??????Money in the Bank (Defensive Efficiency)

This market cycle is teaching us that things can change in a flash, but a strong defensive strategy will always keep you in the game.?Cash is that strategy.?If you can see the company’s financials, then you’re a step ahead.?If you can’t, then ask, agree to sign a Non-Disclosure Agreement if you must.?It’s important for you to know the financial security of your potential employer.?There have already been stories of companies not making payroll, shutting down over night, being acquired unexpectedly, etc.?

Like the NCAA tournament, the “Madness” can lead to some incredible and unforgettable events.?Do your homework if you are considering a change.?And if you need to talk with someone about it, drop me a line, I’m happy to have a conversation with you.

Finally, let me know you’ve read this far, by putting your pick for this year’s Men’s and Women’s tournaments in the Comments, if you’re so bold.?

Mine are:

Men’s: Houston (I think they can survive the first two without Sasser if they need to)

Women’s: South Carolina