McLagan’s active partnership with the Mortgage Bankers Association (MBA) couples the association’s industry network with McLagan’s extensive experience in compensation benchmarking, performance analysis and compensation plan design.
The Residential Compensation Survey profiles over two hundred positions across all lines of business and functional areas within the mortgage industry.
It enables us to collect multiple elements that address the needs of both large and small firms. The annual survey includes three specialized compensation benchmark products focused on residential mortgage banking which cover productivity, incentive plan design and staffing analysis.
McLagan’s team of experts provide firms with three types of consulting assistance. Examples of recent projects follow.
Benchmarking
- Benchmarked management span-of-control, productivity, and pay levels for a private equity owned mortgage subsidiary
- Provided executive compensation benchmarking data for ten of the largest mortgage banks, including the top four mortgage lenders in the U.S.
- Presented compensation trends at the Mortgage Banking Compensation Roundtable; attendees included over 25 large and small mortgage originators and servicers
Incentive Plan Design
- Designed new officer title hierrchy and salary structure for a large U.S. mortgage subsidiary of an insurance company
- Created new sales commission programs for management and staff at a top ten mortgage originator
- Designed a new long-term incentive program for a private-equity owned mortgage servicer
- Performed over 10 regulatory risk reviews of the compensation programs at multiple large and mid-sized mortgage originators
- Modeled the impacts of the conversion of sales staff to non-exempt FLSA (Fair Labor Standards Act) status
Pay Advisory Services
- Served as the management consultant for a mid-sized residential and commercial REIT
- Presented compensation and regulatory trends to the board of directors of a mortgage servicing firm
- Provided guidance to the board of directors at a large mortgage bank regarding severance practices for senior roles
- Assisted a top-five commercial bank in responding to the Office of the Comptroller of the Currency (OCC) consent order regarding mortgage servicing and default practices
McLagan’s annual performance benchmarking studies help our clients better understand and reinforce the linkage between firm and/or individual pay and performance. Examples of our mortgage banking performance benchmarking studies include:
- Executive Management and Production survey, in 2011 approximately 30 companies provided us with production data for over 19,000 incumbents:
- Compensation levels and spend, manager and individual contributor productivity, pay versus performance, span of control, and geographic analyses are provided.
- Data is utilized from the standard Mortgage Executive Management and Origination Survey (MOU) data collection, therefore no additional data collection is needed.
- Data elements include loan volume ($ and units), top producer assessment, effective payout ratios and regional geographic differential information.
- Compensation levels and spend, manager and individual contributor productivity, pay versus performance, span of control, and geographic analyses are provided.
