Despite lower BPS, significant gains in year-over-year funded loan volume kept commissions sizable
MACON, Ga., May 5, 2021 (SEND2PRESS NEWSWIRE) — LBA Ware™, a leading provider of incentivecompensation management (ICM) and business intelligence (BI) software solutions for the mortgage industry, today released summary statistics on the state of mortgage industry loan compensation in the first quarter of 2021. The firm’s analysis of data from its CompenSafe ™ ICM platform showed that increases in year-over-year refinance and purchase loan volume contributed to higher overall commissions for loan originators (LO) and loan processors despite a slight decline in basis points (BPS) paid per loan.
LBA Ware reviewed account data for mortgage lenders who used CompenSafe to automate incentive compensation throughout the first quarters of both 2020 and 2021. The controlled, sample dataset consisted of retail, first-lien production from LOs and loan processors with at least six funded loans during the three-month period beginning January 1, 2021, and ending March 31, 2021.
Commissions earned by LOs in Q1 2021 increased 52% from Q1 2020 because the average LO funded 55% more loan volume in Q1 2021 than in Q1 2020.LOs averaged $1.43M in funded refinance volume per month, an increase of more than 87% over Q1 2020…