Raw Pricing Explained: What Your Rate Sheet Isn't Showing You with Alec Hanson

In this episode, I sit down with Alec Hanson, who leads loanDepot's West division. He started originating in 2004, funded $85 million his first year, grew a branch to over 100 loan officers, and later served as CMO. In 2022, my Gilbert branch funded $575 million. I still left millions on the table because I never understood the margin model. Nobody showed me. Alec and I break down where your rate sheet pricing comes from, how recruiting rate sheets and big sign-on bonuses get paid back through your margin, and why your real comp is your W2 divided by your volume. Then we walk through seven questions to ask your company about raw pricing, expenses, and who controls your price. If you do serious volume and have never seen your raw margin, watch this one before your next move. Connect with Alec: @alecthehanson Follow Chris: @thechrismedellin. DM me "MARGIN" on Instagram and I will run your numbers with you and build a custom pro forma. Chapters: 0:00 Introduction: The $575 Million Branch That Left Millions Behind 3:45 Why Margin Has Always Been Hidden 7:30 How Dodd-Frank Changed Originator Pay 12:15 The P&L Spectrum: Who This Model Is For 17:00 The Recruiting Rate Sheet 22:30 What Raw Pricing Is and How to Verify It 27:15 How Basis Points Get Added Behind the Sheet 32:45 Where Sign-On Bonus Money Comes From 38:00 Death by a Thousand Fees 43:30 Why Volume Is Not Always the Answer 48:15 7 Questions to Ask Your Company 53:00 The Barriers Between You and Your Profit 58:30 Why Brokers Are Moving Back to Retail 1:02:45 Alec's Final Thought: Transparency Wins 1:06:10 How to Reach Chris