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Four Key Considerations for Compensating Top Lending Talent
In today’s mortgage market, it’s not only harder to compete for top lending talent but more expensive. You could just keep throwing money at the problem, but that’s not a sustainable strategy. You need a compensation strategy that rewards top talent in meaningful, not just monetary, terms
Move From LIBOR Further Complicates Warehouse Funding Decisions
Key Ideas: Libor used to dominate warehouse line Agreements Warehouse line agreements now are referencing a wide array of interest rates Diverse sets of reference rates provide optionality to the originator Innovative decision engine simplifies complex funding decisions Mortgage lenders spent the last two years transitioning away from Libor. All new mortgage-backed securities issued by Fannie
Cyberthreats Continue to Impact Mortgage Banking
Cybersecurity in the Financial Services and Mortgage Banking industry in 2022 has started off with a bang. We’re facing an unprecedented time of market contraction, a complex threat landscape, increasing compliance requirements, and a demand for more cybersecurity resources. After getting through the pandemic and an unprecedented volume of demand for loans, many leaders in
Is It Time to Sell My MSR? Factors to Consider When Analyzing a Potential Sale
Many mortgage companies are facing the decision of whether to keep or sell their mortgage servicing rights (MSR) that have built up since the start of the Covid-19 pandemic. The impact on your liquidity, financial statements, and income taxes are major factors to consider. As interest rates continue to increase and production falls off from
Unforgivable: The Strange Saga of the SBA’s Ever-Changing Approach to PPP Loan Forgiveness for Mortgage Lenders
It’s hard to believe but we are approaching the 2-year mark since the CARES act launched the Paycheck Protection Program as a means to address the threat of economic harm to small businesses and their employees resulting from the COVID-19 pandemic. I can’t help but point out the irony of a program that was meant
Five Critical Steps to Improve Profitability in 2022 and Beyond
Mike Fratantoni, Chief Economist of the Mortgage Bankers Association just published this revised forecast for 2022: Industry MBA Forecast ($ Billions of Originations) 2021 2022 % Change 2022 from 2021 2023
Important Changes to HUD Net Worth Requirements and Proposed Changes to GNMA Capital and Liquidity Requirements
As Carl kindly put it when we proposed this topic, he plans to watch paint dry instead of reading this in any detail! But heading into year end and audit season, lenders need to plan for this important issue. HUD Net Worth Calculations This summer, HUD’s Office of Inspector General released an updated version of
