In this episode ofLaugh, Lend & Eat, hostFobby Naghmi sits down withTaylor Allgyer, aproducing branch manager, to break downone of the most misunderstood topics in the mortgage industry—theP&L (Profit & Loss) model.

Taylor shares hisfirsthand experience transitioning into a P&L model, therewards and risks, and how he navigatedthe decision to move his branch. If you’re considering a P&L structure orweighing different mortgage company options, this episode is packed withreal-world insights to help you make the right choice.

🔹Understanding the P&L Model

• AP&L branch gives managers morecontrol over margins and expenses, but it also means taking ongreater financial responsibility.
• Unlike traditional branch models, a P&L structure requiresstrategic planning to maintainprofitability and stability.
• The biggest misconception? That every P&L model goes negative—Taylor explains why that’snot always the case and how the right structure can lead tolong-term success.

🔹Challenges & Comparisons to Other Models

• Financial transparency is key—before moving into a P&L model,know your numbers and understand how different lenders structure theirmargins, expenses, and compensation plans.
• Some lendersoffer higher margins but lackthe operational support that can make or break a branch’s success.
• Managingcash flow and reinvestment is critical—Taylor shareswhat he learned the hard way and what he’d do differently.

🔹Why Taylor Chose Homecomings Mortgage & Equity

• After evaluating multiple mortgage companies, Taylor ultimately choseHomecomings because of itsbalance of transparency, resources, and leadership involvement.
• He highlights theimportance of support—some lenders offerbetter compensation on paper, but don’t providethe infrastructure to help branches succeed.
• His biggest takeaway?It’s not just about the margins—a successful P&L branch requiresthe right combination of autonomy, tools, and leadership backing.

🔹Advice for Loan Officers & Branch Managers Considering a P&L Model

• Don’t just chase higher margins—look atthe full picture, includingmarketing, HR, recruiting support, and operational systems.
• Ask the tough questions: What expenses are included? How much control will you really have? Will leadership be there when you need guidance?
• Plan for growth, not just survival—P&L success isn’t aboutmaximizing short-term earnings butbuilding a scalable, profitable business.

The P&L model isn’t aone-size-fits-all solution—it requiresfinancial discipline, strategic decision-making, and the right company culture. If you’re thinking about making a move,do your homework, compare options, and focus on long-term sustainability over short-term gains.