in Blog, CompenSafe, Software Updates by John Brewer

CompenSafe LO Dashboard August 2014 Updates

The big feature that we released this month is a new Compensation Schedule screen within CompenSafe, our mortgage compensation software,  that allows unlimited Tiers (previously capped at 5 tiers) and the ability to control more options on the Schedule such as excluding 2nd Liens from counting toward the LO’s Units or Volume for determining the Tier Level.

You can see the Compensation Schedule Screen by going to “Manage Corp” > “Schedules”.  Click on a Schedule or click “Add New” in the top right corner of this page.

Screenshot demo loan officer compensation

COMPENSATION SCHEDULE DETAIL

The initial tab that is displayed when you open a Compensation Schedule is the “Detail” tab.
Here you’ll see the basic data points for a Flat or Tiered Schedule:

  • Schedule Name: This is your company’s name for the Schedule. (It is recommended that you develop a pattern for naming your Company Schedules in a similar fashion, which will help with the organization, sorting and filtering of your Schedules.)
  • Assigned To: The Role the Schedule is Assigned to (LO, Processor, LOA, Assistant) for each Loan.
  • Pay Type: Commission or Bonus Pay Type
  • Schedule Activation Date: The Date the Schedule becomes active at your Company. Here you’ll be able to put in older Start Dates to accurately reflect the Schedule Start (Effective) Date. The system will no longer limit this Start Date to the start of the current Pay Period.
  • Trigger Date Determining Eligibility: Select the Key Date on the Loan that will determine which Schedule is Active on that date.

For example if an LO has the following situation, the Trigger Date is used to select the Active Schedule.

Loan #1234
Application Date = 8/14
Funded Date = 9/30

LO changes Schedules on 9/1 and the Trigger Date is set to Application:
Schedule A paying 100 BPS (Stop Date=8/30)
Schedule B paying 125 BPS (Start Date=9/1)

Loan #1234 will pay out 100 BPS (Schedule A) because this was the active schedule on 8/14 (the Application Date).
If the Schedule was set to Trigger on Funded Date, then Loan #1234 would pay out 125 BPS (Schedule B) because this was the active schedule on 9/30 (the Funded Date).

  • Pay Unit: BPS, Flat $
  • Base Pay Amount: For Flat Schedules, this is the amount the Schedule will always Pay out (Example $100 or 100 Bps) per loan. For Tiered Schedules, this represents the value paid out on the 1st Tier.
  • # Assigned: This is the number of Active employees currently assigned to the Schedule. Click on the hyperlink to see a report of these employees.
  • # Closed/Funded Loans: The number of loans that paid out using this Schedule.
  • Entered By: The administrator and the date that the Schedule was initially entered.
  • Updated By: The administrator and the date that the Schedule was most recently updated.

online LO software demo

COMPENSATION SCHEDULE TIERS

The right tab on the screen, titled “Tiers” is used by the administrator to add, edit, or delete Tiers on the Schedule.
The base or first Tier can be entered on the “Detail” tab or on this tab (1st Tier).

  • Measurement Type: Select how the Tier Levels are to be determined: by the number of Loan Units or Loan Amount Volume or a combination.
  • Add Tier: Click this button to add a tier. On each Tier, you can click on the tier row and a dialog will appear allowing you to Edit or Delete the Tier. Note that it is up to the Administrator to ensure the Tiers are in order and the Tier Levels should increase with each incremental Tier Level. The Units or Volume for Tier 2 must be higher (larger number) than the Units or Volume on Tier 1 and so forth.

Options:

  • Retroactive Payout on Tiers: If the Tiered Schedule and higher pay out is retroactive back to Loan #1 closed/funded in the month, then check this box indicating that the Schedule is “Retroactive”.

An example Processor Bonus Schedule might look something like this:

Tier 1 Units > 0, pay $50
Tier 2 Units >=3, pay $100
Tier 3 Units >=5, pay $150

If the Schedule is “non-Retroactive” and the assigned Processor funds 5 loans in the month, she would be paid:

Loan 1 = $50
Loan 2 = $50
Loan 3 = $100
Loan 4 = $100
Loan 5 = $150
Total = $450

If her Schedule was flagged as “Retroactive”, then her pay for the month on the 5 loans would be
$150*5 Loans = $750

  •  F irst Pay Period is Always Paid at Tier Level 1: For companies that pay out twice in one month and have tiered schedules, this option allows you to only pay the bumps on the 2nd pay period of each month. Even if an Employee qualifies at a higher Tier, he/she will only receive a payout on the first period based on the Tier Level 1 pay out. Then on the 2nd pay period, all the higher amounts (bumps) are paid out.

Tier Production Exclusions:
When loans are counted for Units or aggregated for Volume, a company may want to exclude certain loan records from counting toward the Tier volume.

  • 2nd Liens: Exclude all 2nd Lien Types from Tier Units/Volume.
  • Brokered: Exclude all Brokered Loans from Tier Units/Volume.
  • Employee Loans: Exclude all Loans made to Employees from Tier Units/Volume.
  • Reverse: Exclude all Reverse Mortgage Loans from Tier Units/Volume.
  • Referral Source(s): Exclude one or more specific Referral Lead Sources from Tier Units/Volume.

Buttons:

  • All Schedules: Return to the Summary report of all Schedules.
  • Cancel: Save nothing and return to the Summary report of all Schedules.
  • Delete: If no loans and no active employees are tied to the Schedule, an administrator may delete it.
  • Inactivate: If no active employees are tied to the Schedule, an administrator may inactivate it.
  • Add Multiple Employees: Redirects the user to a screen where LO’s without active schedules can be assigned to this schedule in bulk.
  • Add Single Employee: Saves the Schedule and redirects the user to a screen where an Employee can be assigned to this schedule.
  • Save and Done: Saves the Schedule and redirects the user to the Summary report of Schedules.

Info on how you can Edit existing Schedules with the new Compensation Schedule screen.

Compensafe screen shot
If you select a Schedule that has never been linked to a Funded loan, you can edit everything on it.

If you edit a Schedule that is linked to Employees who have already Confirmed the Schedule; you can edit it, but the Employees will be asked to Confirm the Schedule again.

If you select a Schedule that is linked to Funded Loans; you will see the following popup Alert Message, informing you that changes will result in a “Spin-off” or Copy Schedule.

How a “Spin-off” (or Inactivation / Copy New) works:
If you change anything* on the Schedule then a new copy is created with your new values. This is because we’ve utilized the Schedule to pay bonuses/commissions on loans already. On the pop up message, click “OK”, then you will be able to Edit the Schedule – but you are basically Editing a Copy of the Schedule. Enter the “Start Date” of when your changes should take effect. Then when you save, the system will Inactivate the current schedule, make a new copy of the schedule, inactivate employees that were still active on the old schedule, and add them to the new Schedule.

Example:

“Schedule A”

  • Payout = 40 BPS
  • Start Date = 1/1/14

It is linked to 2 LO’s:

  1. Joe with an Activation Date = 1/1/14 &
  2. Sallie with an Activation Date = 5/1/14

The schedule has been utilized on 20 Funded Loans for Joe & Sallie.
An Administrator opens “Schedule A” to edit it because he wants to change the Pay Amount from 40 BPS to 45 BPS.
He takes the following actions on the screen:

  • Changes the Schedule Name from “Schedule A” to “Schedule A2”
  • Inputs a Start Date = 8/16/14 (effective date of the new 45 BPS)
  • Changes the Base Pay from 40 to 45.
  • Clicks “Save and Done”.

The system then takes the following actions:

  • Inactivates the Original “Schedule A”.
  • Sets the Inactive Date = 8/15/14 (one day prior to the New Schedule Activation Date).
  • Inactivates Joe’s “Schedule A” Assignment & sets the Inactive Date = 8/15/14. His “Schedule A” is now only active from 1/1 to 8/15/14.
  • Inactivates Sallie’s “Schedule A” Assignment & sets the Inactive Date = 8/15/14. Her “Schedule A” is no only active from 5/1 to 8/15/14.
  • Creates the New “Schedule A2”.
  • Adds both Joe & Sallie to the new “Schedule A2” with an Activation Date = 8/16/14 and with the SAME Minimum/Maximums as before.

* Above I said you can’t change “anything”; actually you can change the Schedule Name and the Notes and Save.

In Summary:

  • No Funded Loans >> Can Edit Fully
  • No Funded Loans, Employee has Confirmed >> Can Edit Fully, Employee will be asked to re-Confirm.
  • Has Funded Loans >> Can change only Name & Notes. If other items are edited, the current Schedule is Inactivated & a new copy is spun-off. All active employees are also moved to the new Schedule

online loan officer compensation funding matrix

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