While Retail LO incentive has bounced between 90 and 100 bps the past several years, one thing lenders need to keep in mind is the cost of the sales hierarchy. A lot of planning goes into LO compensation, but how does the cost of the management stack add up? When thinking about the retail sales hierarchy, STRATMOR’s Compensation Connection Study attempts to cover most roles up to the Senior Production Executive (head of channel) down to the branch level managers. These include the divisional, regional, area, and producing/non-producing branch managers. When looking at the total compensation cost of the sales hierarchy from the 2024 study (FY2023 data), it landed at 85.7 bps of production. This includes base and incentive overrides. It is important to balance the hierarchy in line with other efforts to control costs and maintain a level of efficiency in tepid markets.
STRATMOR works with bank-owned, independent and credit union mortgage lenders, and their industry vendors, on strategies to solve complex challenges, streamline operations, improve profitability and accelerate growth. To discuss your mortgage business needs, please Contact Us.
Feel free to reach out with any questions or needs we might be able to help with.
