Phil Grossfield's Blog

A LITTLE EXTRA…

Your Comp Plan – Decrease or Increase?

compchartLower Comp – Raise Volume?

The window to change Lender-Paid Comp Plans ends on Sunday 6/30. Third Quarter comp plans will be the same as they are now unless your Broker changes it. I have sent several messages to the Broker of record or Admin about this window and received many questions.  The questions are:

  1. Should you reduce your commission as a strategy to increase volume?  That is, if you reduce your lender-paid commission, will this make you more competitive and allow you to win against other LOs?
  2. Should you increase your commission as a strategy to increase revenue?  That is, if volume is decreasing because of the market, should you make more on each transaction?

My opinion depends on your current marketing strategy.  If you rely on consumer marketing then I advise you reduce your commission to strengthen your competitiveness. However, if you rely on solid long-lasting referral sources, then you might want to slightly increase your compensation to account for an expected drop in volume. I am happy to discuss…call or email anytime….

The window to change your comp plan is currently open…but it closes on Sunday 6/30. If you do nothing your comp plan will stay the same.  If you change your comp plan it will be effective for submission packages uploaded on Monday 7/1 and for the remainder of the third quarter. Let me know if you require instructions on how to change your plan….

My Market Watch:  Bonds Up Big But Lost Gains – Fixed Rates Better Than Yesterday 0.375

This morning before you woke up the bond market was way up…big time up over +75bps and it looked like we had a nice day ahead of us. Interbank’s fixed rates are better by 0.375 from yesterday in some coupons. But since then the bond has fallen almost -50bps. If you were looking to lock, this is a great time to do it. However, if you’re under no pressure to lock, then I’d float…according to my research we might be looking at a reversal. I don’t know by how much, but I think this morning’s push was an attempt in that direction. That is, I think bonds sold off fast this morning as a reaction by traders to play the market. But according to the chatter and the charts we might have some hope ahead of us.  Let’s all think on that…give it some positive energy, eh?

My Schedule:  Available all day….

Distinguish Yourself. In order to succeed in this business and in this market, you must find a way to distinguish yourself from other LOs. That is, if you are going to get more reliable referral sources, you must be able to clearly convey several compelling reasons why they should use you….My calendar is getting full – I am scheduling presentations to discuss (1) How to Be Successful In The Future Market, (2) Where to Look For Additional Referral Sources, and (3) How To Distinguish Yourself From Other LOs.  Let me know if you’re interested in a presentation….

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