Wholesale Access conducts a yearly Production Revenue
and Expense Comparison for builder-affiliated mortgage companies, culminating
in a meeting with top officers and financial analysts from each of the participating
firms. In 2005, 11 firms and Wholesale Access staff met in Tampa for a full day
discussion of the aggregate findings and best practices issues in the industry.
The benchmarking process shows study group members how their strategies, markets,
loan types and so forth affect their income and cost structures and how their
approach to the business varies from their peers.
After a decade spent developing a benchmarking methodology for
the large wholesale and retail lenders, Wholesale Access is now using that methodology
to measure a sub-sector of the mortgage banking industry, builder-affiliated mortgage
companies. This benchmarking creates an accurate accounting of the cost and income
structures of many of the large builder-owned firms in the origination business.
[To view a summary of an academic article on the value of benchmarking and industry
peer networks, click here.]
The study group forms in February each year. The data collection
and analysis takes about four months to complete and is followed by a one-day
study group meeting. Contact Tom LaMalfa for information about taking part in
future studies. The benchmarking data derived from these studies is proprietary
to the companies that participate and therefore not for sale or distribution.