Three Ways CompenSafe Helps Mortgage Lenders Win in a Purchase Market

Right now lenders are retooling their businesses for the current purchase mortgage market. Having observed purchase cycles in the past, successful lenders do these two things: they trim the fat from the cost to produce a loan and they invest in recruiting and retaining loan officer (LO) talent with strong community and real estate partner ties.

Incentive compensation plays a starring role in both of these initiatives. That’s because incentive compensation is the single largest loan origination expense and has a very direct impact on a lenders’ ability to scale and attract talent. Luckily, SimpleNexus has CompenSafe, a comprehensive incentive compensation management (ICM) solution designed just for mortgage lenders. Here are just three ways CompenSafe can help mortgage lenders succeed in a purchase market.

1. Optimizes loan compensation at scale
CompenSafe transforms the arduous task of calculating incentive compensation with a homegrown system of spreadsheets into a “set it and forget it” task performed once each payroll period. This enables lenders to scale up their sales force without bringing on more staff to manage compensation. It frees current administrative staff to take on other projects. And it also enables lenders to set up unique compensation plans without having to create manual workarounds that hinder accuracy and efficiency.

How? CompenSafe directly integrates with loan origination systems (LOSs) and payroll software to automatically produce compensation reports based on real-time loan pipeline information. By eliminating the need for data entry, CompenSafe accelerates the payroll process, producing accurate and fully transparent commission calculations that can be effortlessly scaled to manage any increase in the number or complexity of employee compensation plans.

2. A powerful recruiting tool
CompenSafe is an attractive addition to lenders’ recruiting pitch book because it showcases attentiveness to one of LOs’ top concerns: compensation. CompenSafe’s dashboard fosters employee trust because it gives LOs near real-time visibility into their pay on any device. Through CompenSafe, employees not only see how much they are getting paid before payday, they also see how and why their compensation is calculated for every loan. What’s more, mobile push notifications can be configured to alert employees of pay updates, increasing engagement and serving as a powerful motivator to close loans.

In addition to providing unrivaled transparency into the compensation process, CompenSafe’s automation enables lenders to increase incentive compensation frequency to bi-monthly and weekly payment schedules — a perk employees love.

And because CompenSafe is tailor-made for the mortgage industry, it is powerful enough to handle almost any compensation structure, giving lenders the freedom to build creative compensation plans that entice sales talent — all without sacrificing payroll timeliness and accuracy.

3. Better margin management
Incentive compensation accounts for nearly half of the cost to originate a mortgage loan, so lenders’ ability to manage it has a major impact on profitability.

CompenSafe equips lenders with powerful tools that enable them to fine-tune compensation plans so the organization runs more profitably while still rewarding producers. Ways lenders may be able to preserve margin while retaining talent include restructuring compensation tiers and placing ceilings on payouts. CompenSafe even comes equipped with a regression analysis tool that makes it possible for lenders to model how changes to comp plans impact employee pay before putting them into effect. 

Wrapping Up
In short, CompenSafe is perfect for a purchase market because it gives lenders the latitude to be creative with compensation while also operationalizing an otherwise complex process and protecting the bottom line.

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