Residential mortgage loan officers took home 17% more compensation in the past year, according to the 2010 Comprehensive Financial Institution Compensation Survey issued by Crowe Horwarth LLP, based in Oak Brook, Ill.Â
‘In the past year, mortgage activity was up, in part from the first-time home-buyers' tax credit and low prices prompting sales, but also, in part, from a significant uptick in mortgage refinancing,’ says Timothy Reimink, a senior consultant in Crowe's Performance group. ‘Even though the tax credit expired, rates are still at historic lows, so it's likely the mortgage activity will continue into the next year.’
The survey, which compiled data from 340 U.S. financial institutions, found total compensation – which includes base salary and discretionary pay – for many positions decreased in the past year. Most notably, CEOs saw a 4.2% drop in their annual compensation. However, median base salaries for officers increased slightly, at 2.4%, with non-officers seeing a similar increase of 2.2%.
Despite new federal regulatory requirements on compensation within the financial services industry, only 17.3% of survey respondents said that they made changes to their compensation practices, while another 41% conducted reviews of their practices but didn't find a need for a change.
‘When you look at the broad spectrum of financial institutions, pay practices have not been out of line,’ says Reimink. ‘Compensation problems have primarily been a 'big bank' issue. This survey indicates that most banks haven't made changes because they don't feel they have a problem.’
SOURCE: Crowe Horwarth