Incentivizing Sales Staff Drives Mortgage Lenders Profitability
According to Fannie Mae’s Q1 2018 Mortgage Lender Sentiment Survey, lenders once again reported a negative profit margin outlook for the sixth consecutive quarter, tying a record for the survey. The reasons for their persistently gloomy view? “Competition from other lenders” and “market trend changes.”
The instinctive response to narrowing profit margins is to start simply cutting costs. While lenders certainly need to keep an eye on expenses and trim the fat wherever possible, we recommend that lenders also consider a slightly more counterintuitive approach – incentivize.
As our white paper Incentive Compensation Plans: How Mortgage Lenders Can Use Them to Drive Growth explains, lenders can actually drive profitability by offering incentive compensation plans that align commissions, bonuses and other compensation structures for sales and production staff with key indicators of efficiency.
As the saying goes, you can’t manage what you can’t measure, and by bringing compensation, productivity and operational efficiency into better harmony, lenders can monitor and measure origination performance with the overall goal of driving profitability.
Here’s a taste of what you can learn in our free white paper:
It goes without saying, loan origination is, without a doubt, a team sport, relying heavily on the efforts of multiple people in order to succeed.
One of the best ways to promote teamwork is by offering incentive compensation plans to more than just your LOs, such as processors, closers, loan originator assistants, branch managers, or anyone else that may be involved in the origination of a loan.
Of course, automating the management of your incentive compensation plans using CompenSafe makes tying compensation to performance to drive profitability a much easier task. What’s more, CompenSafe also provides transparency and real-time data to your sales teams and branch managers, making it easy to get everyone on board.
Ready to get a better grip on your profitability? Contact us to schedule your demo of CompenSafe today.