TPO and Secondary Products; Lender Data Breach; New LIBOR Substitute

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Posted To: Pipeline Press

Where should a lender reduce expenses? I received this note from STRATMOR’s Jeff Babcock. “In our numerous conversations with client mortgage origination companies regarding necessitous cost cutting, the target is virtually always operations and fulfillment. Technology applications are generally justified based on operational efficiencies. Yet the MBA and STRATMOR Peer Group Roundtables (PGR) data over the last three years for Mid-Size Independents confirms that Fulfillment accounts for approximately 27% of direct production expense (average of about $2,000 per loan) while Sales costs run 73% (average of about $5,300 per loan). The real opportunity for achieving meaningful expense reductions clearly rests with the all-encompassing arena of sales functions. If a lender had been successful…(read more)

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