Before the pandemic, my husband and I decided to move to Northern Colorado. We loved our old house, but, as we contemplated future retirement, we wanted to be closer to family. So, we made a wish list of everything we wanted in our new home and took the leap into the competitive housing market. We did a lot of comparison shopping before we found our forever home. We checked most of our “wish list” boxes — acreage, a window in our laundry room, bedrooms for our kids (and their kids) when they come to visit, two separate offices for our work from home needs, and we are now 7.3 miles from my brother and my sister’s families. It’s awesome, but we had to prioritize, compromise, and analyze before we made our final decision.
Lenders, you need to make your own “wish lists” as you make growth and operational strategy decisions. In our InFocus article, Sr. Partner Jim Cameron does an excellent comparison of Enterprise Management (EMB) and Corporate branch model profitability, drawing on current data from the STRATMOR files and the PGR: MBA and STRATMOR Peer Group Roundtables Program. Understanding the key characteristics of EMB branches and comparing the key performance metrics between this branch model and the corporate one is essential to identifying the best model for your organization. This article is packed with comparative data that addresses the question of whether one branch model is better than the other — or not.
A company’s brand is one of the most important things the company owns; it’s a valuable asset that provides a competitive advantage that differentiates you from your competition. In his Borrower Experience article this month, MortgageSAT Director Mike Seminari discusses the importance of consistency in the customer experience across the organization, which is a core tenet of any brand. “To achieve consistency in customer experience, you need two things: a clearly stated set of cultural values and employees who buy into those cultural values,” Mike says. In his article, he outlines three action items as he answers the question, “Is consistency in customer experience achievable across an organization?”
Thank you for joining us this month. If you could use help with the “compare and contrast” of your current retail branch model strategy, please reach out to me or any of the STRATMOR partners or principals. We would be happy to help you dig into the data to make informed strategy decisions.
By Jim Cameron June 2021
I spoke with a mortgage banking executive recently and asked how his company was organized from a retail branch perspective. He said, “We are a P&L branch model company.” While we all know what a P&L is, it did not really answer my question, so I asked some follow up questions. “Is the branch manager paid a percentage of the bottom line in addition to salary, overrides and commissions on personal production? Or, is the structure more of an Expense Management Branch (EMB) where the branch manager is paid the residual bottom line after the receipt of a fixed revenue credit, payment of all expenses, fees to the parent and after holding back reserves?”
The executive replied, “Oh, it is the latter — that’s what we do. It’s the best model because we can recruit excellent branches with entrepreneurial branch managers. While we give up some upside profits in good times, we find our managers do a great job of managing expenses in down markets because it directly impacts their compensation. Year in and year out, our P&L branches are more profitable.”
At STRATMOR, this was not the first time we have heard that EMB models are more profitable. But are they really? What does the data tell us? In this article, we examine the key characteristics of EMBs, their prevalence among Independent Mortgage Bankers (IMBs) versus depositories, and we compare key performance metrics between EMB model companies and “corporate” branch model companies.
Is organizational consistency in customer experience achievable across an organization?” STRATMOR MortgageSAT Director Mike Seminari answers this question for mortgage lenders with insight into the loan process and three action steps to take.
In this article, retiring Senior Partner Jeff Babcock offers some candid and straightforward advice to help lenders prepare for the inevitable downturn bound to follow 2020’s record-breaking origination volumes.
Using MortgageSAT Borrower Satisfaction Program data, we’ve pinpointed some relatively easy tactics that provide substantial improvements in overall borrower satisfaction.
Recently, Sr. Partner Jim Cameron facilitated two “deep dive” Operations Workshops with 49 mortgage lenders. Participants openly shared their experiences and talked about how the industry transitions to a “new normal.”