How can it be that it’s been 14 years since Michael Jackson died of acute propofol intoxication? (A drug that is used for the induction and maintenance of general anesthesia.) The world certainly took notice of his death, and moving into mortgage banking, any time the same news story contains words like “FHFA,” “socialism,” “Congress,” and “credit scores” everyone takes notice. People are taking notice of bank and credit union performance in this environment. Unlike non-depository lenders, they’re faring okay in this environment. Personnel can be shifted to other channels within the company, such as auto loans, credit cards, or customer service. They generally have a different set of concerns than independent mortgage banks. For example, how does the referral process work, and who is compensated along the way? How are potential non-mortgage customers identified? How are marketing expenses handled… does the mortgage arm of the bank do its own marketing? How are management costs allocated? What is the reporting structure: who does “mortgage” report to and how? Are mortgage employees actively trained on other bank channels such as auto lending or credit card work? IMBs, of course, must compete with bank and CU comp structures which often involved a salary (let’s say, $5k per month) plus commissions (let’s say, 50 basis points). (Today’s podcast can be found here and is sponsored by Visio Lending. Visio is the nation’s premier lender for buy and hold investors with over 2.5 billion closed loans for single-family rental properties, including vacation rentals. Through its top-rated Broker Program, Visio brokers can earn up to 5 percent. Hear an interview with Black Knight’s Frank Poiesz on the current regulatory environment and what parts of the origination cycle AI will likely benefit first.)