Efficiency: According to data from STRATMOR Group’s Originator Census study, the top 40 percent of originators account for more than 80 percent of total volume, a measure which has not changed by more than one percent in any given year. That means that 60 percent of an average lender’s sales force produces only 17 percent of total volume. The bottom 60 percent close less than one-half of one loan monthly. What’s a lender to do? In a recent article in the Insights Report, STRATMOR Senior Partner Nicole Yung suggests that lenders need to actively manage out low producers. “Our data shows that even for the bottom 20 percent, almost 60 percent of terminations are voluntary, which means these originators are leaving on their own versus the company managing them out or up. If lenders are looking to cut costs, they must be more aggressive in terms of managing sales. Set expectations and stand behind them.” If you’re looking for strategies to help you stabilize in this environment and build a scalable foundation for future growth, see, “Strategies for Mortgage Lenders to Maintain Profitability” by STRATMOR Senior Partner and CEO, Lisa Springer.
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