Most of the software and applications used in today’s world are no longer on-premises systems. The world is moving in a direction that wants, and needs, a solution that can keep up with their businesses. For over 20 years now, many companies have been moving to the cloud, also known as Software as a Service …
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 …
Move From LIBOR Further Complicates Warehouse Funding Decisions Read More »
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 …
Cyberthreats Continue to Impact Mortgage Banking Read More »
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 …
Is It Time to Sell My MSR? Factors to Consider When Analyzing a Potential Sale Read More »
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 …
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 …
Five Critical Steps to Improve Profitability in 2022 and Beyond Read More »
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 …
The earth is flat. Our industry values unclosed loans more than closed loans. One of these statements is crazy, and both can be fact-checked. Checking one requires a plane ride or ocean gazing, while the other requires a comparison of liquidity between two periods. As the buckets of ink spilt on their accounting in these …
“The earth is flat. Our industry values unclosed loans more than closed loans.” Read More »
You probably heard this advice. Recently, a client asked me to explain this advice in detail. Here it goes: Working on the business, not just in it, can change everything for you. “Working on the Business” is thinking as leader. When I speak about a leader, it means an executive that runs the business, or …
As it looks like it might actually now happen, we thought it was a good time to revisit an article we wrote back in 2019, which delved into some pretty significant accounting regulation changes which could affect all mortgage banks, but especially branch heavy retail lenders. Having recognized some major holes in ASC 840, the …
Revisiting ASC 842: What are the changes and how can you meet this deadline? Read More »
