There Are Two Doors in Mortgages
And not the lady or the tiger
If a bank wants to significantly increase mortgage originations only 2 choices
Go down the yield curve or down the credit curve
The yield curve is simply: lower rates, beat competition but that means
2/
And not the lady or the tiger
If a bank wants to significantly increase mortgage originations only 2 choices
Go down the yield curve or down the credit curve
The yield curve is simply: lower rates, beat competition but that means
2/
/2 less profit
But it's a flawless system
For 30 years since the development of commissioned mortgage sales forces; putting on a rate sale gets big results its just tricky explaining lower NIMs later
Down a credit curve doesn't mean accepting bad credit score clients
3/
But it's a flawless system
For 30 years since the development of commissioned mortgage sales forces; putting on a rate sale gets big results its just tricky explaining lower NIMs later
Down a credit curve doesn't mean accepting bad credit score clients
3/
/3 big banks don't accept impaired credit, it means more aggressive rental or business for self programs, maybe more liberal foreign buyer qualifications
Many ways to tweak those programs so its easier to qualify
And realtors have incredible abilities work those angles
4/
Many ways to tweak those programs so its easier to qualify
And realtors have incredible abilities work those angles
4/
/ so when you read about a bank CEO saying there will be a better lead systems or new processes that will bring in more mortgages next quarter
Read between the lines
They just unlocked one of the 2 doors
Read between the lines
They just unlocked one of the 2 doors
