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Mortgage industry underwriters are experiencing increased levels of incentive-based compensation, according to new data released by the STRATMOR Group, a Greenwood Village, Colo.-based consultancy.
In a report issued by the STRATMOR Group, the 71 percent of lender respondents to the company’s survey on back office incentive compensation affirmed that they provide incentive-based compensation for their back office personnel. Out of the 29 percent of respondents that do not provide this form of compensation, more than half stated they were considering or were in the process of implementing such plans.
As for this prized benefit, the average mortgage underwriter incentive-based compensation level increased 2.7 percent to $86,171 from 2014 to 2015. And it appears that many underwriters are not spending their compensation on commuting: 24 percent of respondents to the STRATMOR Group’s survey said that they allow underwriters to work remotely, with independent mortgage companies more than twice as likely (33 percent) than banks (14 percent) to do so.
“Despite rumors to the contrary, average underwriter compensation has remained relatively steady for the last several years, with only marginal upticks in some years which likely reflect standard merit increases,” said Matt Lind, senior partner at the STRATMOR Group. “We also see that companies are taking a balanced approach to underwriter incentives that rewards productivity, but also emphasizes non-volume related factors. This is in contrast to incentive compensation plans for other back office personnel that emphasize throughput over no