When rates fall, investors typically fatten their margins. Why? Volume increases and turntimes slow; they end up with more business than they can even handle. The result? Independent lenders complaining about service given pricing which isn't quite reflective of the true MBS market.
If you can, now is the time to think about securitizing. Creating a strong, and likely sticky portfolio when rates are low is ideal! If you think you're not ready, ask yourself, if not now, when?
Through a securitizations and servicing, you will:
-take advantage of strong MBS pricing with no maximum. Ginnie 4s trading at 101.5-101.9 and 5s at 106.5!
-maintain healthy allocation across investors
-build servicing portfolio with benefits like cross selling, CRM campaigns, reliable income stream and run rates etc
-improve warehouse line management and associated costs
-strengthen financials
maintain internal margins while adding servicing value
Want to learn more about securitizing loans and retaining servicing? Contact Match Box today.
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