As I sit here waiting for the private Mortgage Backed Security to get back in business and start securitizing pools of non-agency mortgage loans (not merely jumbos like today), along with (what I predict) the implosion of FHA (or at least a dramatic decline in its industry reach) along with the GSE’s start to drastically wind down their operations, we need to rebuild our industry from the ground up. Someone needs to provide all of us some guidance and rewrite how things need to be done differently moving forward … so I’ll start:
First off, the ‘commission for production’ model is seriously flawed. The consumer finance payroll method absolutely makes the most sense (something I’ve personally done, trained others to do, and provided instruction to my former students @ Secret! University).
This is an easy one, no more being a baby sitter for big commissioned salespeople who want to discuss their income regularly, etc. The employer simply sets a salary for each of the positions within the company. Occasionally this or that position is worthy of a nice bonus, so that is part of what personnel can expect from time to time (once they meet certain preset goals). Employer needs to incentivize Quality and NOT quantity.
This way, the Company focus is where it belongs – on the outcome of the loans, not mere production numbers. Good loan outcomes = Be Happy -- Lousy = Be Unemployed.
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