Your rate sheet is the first step toward achieving a persistent elevated final profit contribution (FPC). FPC = Volume Produced x (Gain on Sale + Value of MSR Retained or Sold). Having a rising FPC is a clear advantage as a mortgage banker. Let’s begin with today’s vision test:
Which is better, 1 or 2? $50 million locked with a 3.00% initial profit margin (IPM) -or- $50 million locked with a 2.500% IPM. Easy right?
Click click click... Which is better now? 3.00% IPM with 30% fallout -or- 2.50% IPM with 20% fallout?
Click click, click... Last one. Which is better? 3.00% IPM with 30% fallout and zero extensions -or- 2.50% IPM with 20% fallout and 5% needing extensions to close?
A better rate sheet and a clearer vision of your FPC awaits on the other side of solving challenges like these.
> > As featured in Les Parker's TMSpotlight "Follow" daily newsletter: Clear vision is a clear advantage—make it yours!
