5X Solutions Announces Tool to Help Mortgage Lenders Adjust to Market Conditions
Understand the break-even point at the right size before it’s too late
SAN DIEGO, CA, USA, September 27, 2022 /EINPresswire.com/ — 5X Solutions, LLC, BI Telemetry Manufacturer mortgage business intelligence announced a new tool to help businesses manage their overhead and expenses.
Loan originations fell 50% and may not have bottomed out. To survive in today’s market, lenders must redefine their business projections and “adapt” their business models to meet demand. Companies that do this will stay competitive, mitigate staff losses and establish a new base from which to grow their business.
To help you with this task, 5X Solutions has developed a “What If” scenario process providing guidance on how strategic changes will impact lender results. Their tool provides a model for lowering the break-even point to its minimum volume. Then, it outlines the potential profit when lenders create units and volume above this new standard. Results are monitored based on lender actions providing monthly analysis of the result achieved until final changes have been made.
The purpose of this is to help make quick and impactful decisions with the following perspectives considered in the simulation:
1. Gross margin – increase (decrease) for competitive reasons
2. MLO Comp – decrease for margin preservation; or augmentation for MLO retention
3. Cost Reductions – Execution FTEs; recurring third-party services
4. Bonus plans – are they aligned with the desired strategy?
5. Net margin, break-even point and potential profit (after adjustment)
Using the number of closed loans, financial data, and a list of changes (e.g. margins, bonus plans, fixed expenses, recurring vendor services, etc.), the tool provides a report that shows “what if” scenarios, including a cost reduction matrix to help guide decisions. Then 5X Solutions will follow up for three months until the cost reduction measures are fully realized.
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