The company has also simplified its performance bonus program, which goes from three tiers down to one. Brokers will now earn MCAP’s 5-bps incentive by maintaining a 75% closing ratio (commitment to fund ratio).
“If you are the average mortgage broker it is definitely a benefit,” says mortgage broker Ron Butler. “Anything that pays more money without the added strings of volume or efficiency is good. If you are at their very top tier, it looks like at least a 5-bps (compensation) bump on normal efficiency, so I would have to say bravo.”
MCAP VP Sales, Gino Tieri, says, “Our efficiencies are where we need them to be and that is a direct result of the brokers knowing how to support their lender.” Therefore, MCAP doesn’t need to incentivize efficiency as much as it has in the past.
“Of course we continue to monitor (ratios), but the last few years have seen positive trends and I would associate this with brokers utilizing tools such as Professor (MCAP’s broker portal) to…streamline the (approval and fulfilment) process.”
In addition to the finder’s fee increase, MCAP also still pays “MPoints” with every deal to
aid in business development. Brokers can use them for things like buying down rates and offsetting clients’ legal and appraisal fees.
MCAP is the fifth biggest broker-channel lender by volume, according to Q3 2012 data from D+H.
Rob McLister, CMT