How the Program Works »

Current Peer Groupings »

Timeframe for Spring 2010 Cycle »

2010 Participating Companies »

Data Outputs »

Frequently Asked Questions»

• How do you ensure that the benchmarking data is accurate and can be used for meaningful comparisons between firms?

• We believe we are a high-performing mortgage banker. How would we benefit from the Peer Group program?

• Our business model is different from most other companies. Therefore, what good would it do to compare with “peers”?

• How much time is required to compile the Peer Group data?

• How can I justify the cost of the Peer Group program?

Our process begins with the collection of loan production and servicing data via the web. About two weeks after the end of the reporting period, we send all participants detailed instructions and definitions for completing our on-line survey. Once the data are collected, we generate a 100+ page data book that displays financial and operating metrics for each individual company within a given peer group. Each book also summarizes simple and weighted average aggregate totals for all other peer groups.

The data inputs are thoroughly reviewed by MBA and STRATMOR personnel, who follow-up individually with companies to ensure completeness, accuracy and consistency. Once the data has been “scrubbed” and adjustments have been made, we provide meeting books to participants generally one week before the roundtable meetings.

Our roundtable meetings are conducted offsite and typically last a day and a half. Our discussions focus on business strategies, models used, best practices, industry trends, hot buttons, technologies employed, etc. MBA and STRATMOR prepare a detailed presentation which summarizes the results and provides extensive analysis across all groups and across various reporting periods.

Once all of the roundtables have taken place and any final adjustments have been made, participants receive a final databook in hard-copy and electronic format. The electronic format allows companies to perform their own analyses. In addition, participants receive the updated presentation, which can be used as a template for internal reporting and presentations.

Peer Group D: Mega and Large lender/servicer group
Peer Group B: Small/medium sized lender/servicer group (Banks)
Peer Group I: Small/medium sized lender/servicer group (Independents)

Typically, Peer Group D meets semi-annually in both the Spring and Fall and Peer Group B and I meet in the Spring.

Our current timeline for the Spring 2010 cycle (data for period ending December 31, 2010) is as follows:

July. 15 - Web site opens for data entry
Sept. 9 - Data submission due for Group D
Sept. 9 - Oct. 14 - Data reviewed and scrubbed
Oct. 28-29 - Group D Roundtable, Atlanta, GA

The 2010 PGR program participants include the following:

AmTrust
Bank of the West
Banner Bank
BB&T
BBVA Compass
BOK Mortgage Company
Capital One
Cherry Creek Mortgage
CitiMortgage, Inc.
Citizens Bank
Cobalt Mortgage
Colonial Savings
Cornerstone Mortgage Company
Crescent Mortgage Company
Envoy Mortgage
EverBank Mortgage
Evergreen Home Loans
Fifth Third Mortgage
FirstMerit Mortgage Corporation
GMAC Mortgage
Golf Savings Bank
Guild Mortgage
HomeStreet Bank
Hyperion Capital Group
ING Direct
M&I Bank
Mann Mortgage
Megastar Financial
MetLife Bank
Mortgage Investors Group
Nationstar Mortgage
OnQ Financial
Opes Advisors
PHH Mortgage
Plaza Home Mortgage
PNC Bank, National Association
PrimeLending
RBC Bank
Regions Mortgage
Seattle Mortgage Company
Shea Financial Services
Sidus Financial
Synovus Mortgage Corporation
U.S. Bank
Umpqua Bank
USAA Federal Savings Bank
Walker Jackson Mortgage Corporation
Wintrust Mortgage Corporation

Data Outputs
The survey includes information on the following, among others:

• Production distribution by loan type
• Production income and expenses (expressed in per-loan and basis points) as well as personnel requirements for the following four channels:
  • Retail
  • Broker
  • Correspondent
  • Direct marketing
• Breakdown of sales vs. fulfillment costs
• Production support/post closing costs and personnel
• Servicing distribution by loan type
• Servicing income and expenses (expressed in per-loan and basis points) as well as personnel requirements
• Other costs and personnel data on technology and corporate administration,
• Separate sections on systems used, company profiles and operating models

How do you ensure that the benchmarking data is accurate and can be used for meaningful comparisons between firms?

While benchmarking is never a perfect process, we believe our data is the most accurate, apples-apples data in the country.

We have developed a detailed set of definitions that clearly describe each data element. These definitions are fine-tuned and clarified as necessary each cycle. After over eight years of refinement, we believe our definitions are well organized, clear and complete.

But having clear definitions is only half the battle. Over a period of six to eight weeks, MBA and STRATMOR personnel review and scrub each company data submission in detail. We look for errors, omissions and data inconsistencies and provide a list of follow up items for each participant. When all items are addressed, we prepare the preliminary data books to be used for our Peer Group roundtables.

We believe we are a high-performing mortgage banker. How would we benefit from the Peer Group program?

While some companies clearly perform better than others on an overall basis, we have yet to find a Peer Group company that is “best in class” in every key metric. Therefore, even for the best performing companies, there are always pockets of opportunity. By realizing improvements in weak areas, high performing companies can achieve substantial benefit from ongoing Peer Group participation.

Our business model is different from most other companies. Therefore, what good would it do to compare with “peers”?

While many companies believe their model is unique, they may be surprised to learn that there are other companies that operate in a similar fashion. However, even if a portion of their model is unique, other aspects of their operations may be very similar to peers. For example, if a retail lender sources loans in a unique way, they may have sales costs and sales productivity benchmarks that are not comparable with others in the Peer Group. However, all of the activities and costs after the point of sale may be comparable, including fulfillment (processing, underwriting and closing) and production support (e.g. post closing, secondary, shipping).

Furthermore, there is great value in understanding the competitive market landscape. If you better understand the issues driving your competitors, you can take a more learned approach to competing in the marketplace.

After attending our roundtable meeting, many of our participants are able to identify a subset of companies within the Peer Group that line up particularly well with their own company. They will then analyze their company results against this subset of companies. This allows for the best “apples-apples” comparisons.

How much time is required to compile the Peer Group data?

Compiling the Peer Group data is in fact a time-consuming task. The key drivers of compilation time are:

• Whether or not you are a first-time participant
• Whether or not you are reporting both production and servicing
• How many production channels you have (Retail, Broker/Wholesale, Correspondent, Direct)
• How well your financial statement line items “line up” with Peer Group formats

We estimate that a first time participant with multiple production channels and both production and servicing may require 40 to 60 hours of compilation time. If your firm is a veteran of the program and is perhaps a “production-only” firm the time requirement may be reduced by 50 percent.

While the data compilation process may take 40 to 60 hours at most, the work can be done over a six to eight week period of time. This allows most firms to successfully juggle the resources needed to complete the task.

How can I justify the cost of the Peer Group program?

The costs of the program range from $5,000 to $12,000 annually depending on company size, frequency of data submissions (annual vs. semi-annual) and whether or not the company has both loan production and loan servicing.

In the end, our participating companies have concluded that the benefits of Peer Group participation far exceed the hard costs and the time and effort required to compile the data.

In the go-forward market, companies who understand their costs, efficiency, productivity and revenue dynamics will gain market share. Participation in the MBA/STRATMOR Peer Group program is critical to gaining an understanding of your performance and an assessment of strategies and operating tactics that can be undertaken to maintain competitiveness in the new market environment.