Hello, LOs!
With mortgage production forecast to shrink by about 40% this year, lenders are obsessed with shaving their costs.
But there seems to be an exception for high-producing LOs. They are still receiving fat signing bonuses from lenders, although less generous than they were in the refi-boom.
In a purchase loan-dominated market, relationship-based business has become even more important, Jim Cameron, senior partner at Stratmor Group, wrote in a new report.
“Good LOs have strong referral partner relationships and a deep set of relationships with prior customers in the communities in which they live,” Cameron wrote.
It wasn't uncommon for signing bonuses to be in the range of 75 to 100 bps on volume over the past two years. But with a drop in volumes and margins, there will be a reduction in signing bonuses this year, though how much will vary by market.
LOs, I'm curious how much the reduction has been for signing bonuses this year. Are they down to the 20 to 30 bps range like they were in 2018 and early 2019? How did you negotiate signing bonuses with your lender?
Please share your thoughts with me at connie@hwmedia.com.
Connie Kim
Mortgage Reporter, HousingWire
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