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LO comp levels up, bips paid down; Experian data leaked, again! 😫

By May 7, 2021 No Comments

LBA Ware finds LOs made crazy $$$ even though bips paid declined per loan

LBA Ware analysis of data from its CompenSafe ICM platform showed that increases in year-over-year refinance and purchase loan volume contributed to higher overall commissions for loan originators and loan processors despite a slight decline in basis points paid per loan.

Commissions earned by LOs in Q1 2021 increased 52% from Q1 2020 because the average LO funded 55% more loanvolume in Q1 2021 than in Q1 2020.

LOs averaged $1.43M in funded refinance volume per month, an increase of more than 87% over Q1 2020 ($764k), and received an average of 96.332 BPS per refinance loan (versus 96.944 BPS in Q1 2020).

Purchase volume grew 22% year-over-year, with LOs averaging $1.11M in funded purchase loans per month (versus $912k in Q1 2020) and receiving on average 109.091 BPS per purchase loan (versus 108.251 in Q1 2020).

Although LO paychecks were larger in Q1 2021 than Q1 2020, the uptick in refinance production and slight downward pressure on BPS paid for refinance loans contributed to a 1.79% decrease in overall per-loan commissions from 103.564 BPS in Q1 2020 to 101.709 BPS in Q1 2021.

Loan processors handled 29% more loans per month in Q1 2021 compared to Q1 2020, fueling a 51% increase in average incentive compensation earned from $1,451 per processor per month in Q1 2020 to $2,194 in Q1 2021.

Loan teams grew significantly from Q1 2020 to Q1 2021, with the average lender increasing LO headcount by 32% and processor headcount by 58%.

“They say ‘many hands make light work,’ and in the first quarter of this year we definitely saw lenders sharing the workload,” said LBA Ware Founder and CEO Lori Brewer, in a statement. “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.”

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Experian data leaked, again, and we still don’t know how bad it might get

One would hope that credit bureau Experian had learned a lesson about data leaks after watching what happened to contemporary Equifax in 2017, but the agency has now followed up a major 2020 breach in South Africa with a new application programming interface (API) security vulnerability that appears to have leaked the credit scores of NEARLY EVERY AMERICAN.

But it could get worse as one security expert said Experian’s efforts to address the leak does not fully correct the security issue

According to a spokesperson for Experian, “We can confirm a single, isolated instance involving a client website. This situation did not implicate or compromise any of Experian’s systems, including our API. We were able to alert the client and resolve the matter.”

The Experian API security vulnerability was discovered by Bill Demirkapi, a student at the Rochester Institute of Technology. He came across it while shopping around for student loan vendors and examining the code that one used to check borrower eligibility. Demirkapi reported the data leak to security researcher Brian Krebs, who in turn contacted Experian. 

Experian has reportedly discovered which loan vendor was responsible and closed off the data leak, but Demirkapi worries that this is a systemic API security issue that could be exploited through hundreds or even thousands of other sites. According to 

CPO magazine, Demirkapi says that Experian merely put the vendor in question’s endpoint into maintenance mode, which would not address other possible API security holes.

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With Josh Pitts & Mike Ciorrocco (C-Roc)

Housing “central” to successful climate strategy

A California bar owner was charged with multiple felonies for allegedly selling fake Covid-19 vaccination cards, officials say.

Our guess is that he never had a good eye for spotting fake IDs.

The Biden Administration sent a strong message last month with a commitment to cutting U.S. emissions in half by 2030,  and it’s clear that housing will be central to a successful climate strategy, according to this piece in

Biden’s plans include much-needed investments to address housing insecurity for millions of people and make an important down payment on climate solutions as well.

“Housing is responsible for 17 percent of U.S. economy-wide net climate emissions— almost 1 billion metric tons per year— from heating, cooling and other uses of energy,” the article states.

“To meet the administration’s new goal of a 50% emissions cut by 2030, the U.S. will have to dramatically slash these housing emissions through deep energy efficiency upgrades, electrification and the use of clean energy sources,” the article continues.

And the effort won’t be limited to poor, urban areas.

Affordable homes in rural communities in particular often have poor efficiency, outdated heating and cooling technology and an overreliance on expensive and higher polluting fuels, making them a promising target for reduced energy burdens and healthier living through building decarbonization.

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