- theMReport.com - https://themreport.com -

Loan Originator Commissions Increase in Q1

UnderwritingDespite some year-over-year decline in basis points paid per loan, loan originators and processors saw higher commissions during Q1 2021 thanks to refinance and purchase loan volume, according to a report from LBA Ware [1], which provides incentive [2] compensation management [2] and business intelligence software to the mortgage industry.

LBA Ware Founder and CEO Lori Brewer weighed in on the results of the Q1 report.

“They say ‘many hands make light work,’ and in the first quarter of this year we definitely saw lenders sharing the workload,” Brewer said. “Lenders employed 32% more originators and 58% more processors than this time last year and paid incentive compensation to an average of three to four individuals per loan. So far, volume remains brisk across purchase and refi, but as refi volume wanes it could prove difficult to sustain this level of staffing. This is a trend we will be monitoring closely in the coming months.”

Some key takeaways from LBA's report follow: