It is generally accepted within the residential mortgage industry that no less than 60-70% of all loan production is created at the hands of small company originators. While the magnitude of small company production speaks strongly about the industry’s dependence on smaller originators, it does nothing to explain why these originators are the least profitable and most volatile players in the industry. Simply put, small brokers/bankers rarely possess the business infrastructure, capital wherewithal, or management expertise to maximize the value of the originated loan. The result is a highly competitive and overcrowded origination space where small lenders focus less on increasing margins on a per loan basis (through increased secondary/capital markets functionality) and more on expanding earnings through “fee income” resulting from increased origination volume. In order for small company originators to mature into more profitable lenders, they must expand their capabilities to capture additional streams of revenue.