Peer and Channel Pull-through Analysis – Q1 2019

Peer and Channel Pull-through Analysis – Q1 2019

The above chart describes pull-through for loans locked in CompassPoint™ during the first quarter of 2019, as measured on June 30, 2019.  Compass distinguishes between total pull-through (WA Pull Thru in the chart) and clean pull-through (WA Clean Pull Thru in the chart).  Total pull-through is the percentage of locked loans that closed by the end of the measurement horizon, without consideration of changes to lock terms that may have impacted the lender’s hedge cost and total profitability.  Clean pull-through measures the number of loans that closed under the original lock terms, with no pricing exceptions, lock extensions or re-locks. 

Large lenders showed a significant disadvantage in both total and clean pull-through vs. their small- and medium-size competitors.  The small and medium cohorts turned in nearly identical pull-through performance in Q1. 

Compass Analytics peer data also measures pull-through by business channel as shown in the following chart.

In Q1, Consumer Direct and Correspondent business models turned in significantly lower clean pull-through results vs. Retail and Wholesale.  Unsurprisingly, total pull-through for Consumer Direct business was lower than the other channels, though CD clean pull-through was close to Correspondent lender results. 

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