Friday, May 13, 2011
Rates have come down over the past week and are at their lowest levels all year. Applications rose last week and your lock desk and pipeline should have seen a pop over the past few days. You should have a plan (even if just in your head) about what reaction you should be seeing in response to rate increases or decreases. Do you revisit prior, aged prospects and applications that could be in play now that rates are down up to .5%? Do you look at your margins and see if they are in line with the market movements, or are they stagnant? Do you look at your hedge coverage and make any modifications to your pull through assumptions? Basically, rate movements (both up and down) can and will have an effect on your pipeline, volume, and profitability. What are you doing to react to them?