Posted To: Pipeline Press
To listen to the audio version of today’s commentary with an interview with STRATMOR Group’s resident recovering accountant Jim Cameron on handy metrics for MLOs to be aware of, please click here . Income and revenue are certainly metrics whence people make decisions. Is the profit on a locked, but not funded, loan something a lender should count on their balance sheet? And if so, if the loan falls out, is it a real loss? If you’re interested in accounting nuances, ask your CFO about Interest Rate Lock Commitments (IRLCs ) , an acronym for a lender’s locked pipeline. Some institutions, like Wells Fargo, recognize gain on sale (GOS) income at the time of a loan’s closing, other companies recognize GOS income at the time of lock. (For example, check out the 98 times…(read more)
