in Blog, Guides, LBA Ware News, Metrics & Trend Data, Performance Management by Kelley Mangel

Are Your Loan Originators Batting 1,000 or Riding the Pine Pony?

Earlier this month, we hinted at some big discoveries we made by parsing through the vast amounts of data we collect by virtue of our automated incentive compensation and sales performance platform CompenSafe. The day has come to share some of those discoveries.

There are two major concerns preoccupying mortgage lenders’ minds these days: reducing costs and increasing volume. In many ways, loan originators (LO) play a large role in lenders’ successes (and failures) in those goals. As compensation is one of lenders’ largest expenses, we took a look at the wealth of data we process on how lenders are compensating their sales staff and what kind of volume those staffs are producing.

What we found was pretty remarkable. For example, we discovered that 70% of all loan volume is produced by only 3% of LOs? That got us thinking…

  • Are lenders doing themselves a disservice by building out large sales teams to drive volume?
  • What observations can we make over time regarding top-tier versus bottom-tier producers?
  • What kind of impact do low-performing LOs have on an organization’s bottom line?

We were able to arrive at some pretty clear answers to those questions, and we packaged our findings into a free white paper titled, Loan Originator Performance Trends: How to Build a Team of Hall of Fame Originators.

In it, we compare LOs to athletes and analyze their performance through the lens of sports. Top-tier performers are the hall of famers, while bottom-tier performers are the utility players, and as any good coach knows, there’s only so much you can do with utility players. However, a low-performing team need not stay that way, as we have uncovered several strategies for building a team of champions from the get-go to ensure sales teams are constantly delivering maximum production and driving greater profitability.

To learn more about the impact low-producing utility players can have on your bottom line and how to build a team of mortgage origination hall of famers, download the free white paper here.

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