Thursday, May 12, 2011

How is your lock activity?

Rates have come down over the last week and are now at the lowest levels they have been all year. Your lock activity should have seen a bounce and your pipeline should have felt a boost.
Refinance applications have started to climb based on the rate drop as well. Are you using any methods to trigger your actions when there are rate movements like this? Everyone has borderline loans from Q1 that never moved forward. There should be a plan in place (if even in your head) of what to expect when rates move up or down. You should be reviewing your aged pipeline to see what deals may now be able to come back to life. You should be looking at your margins and making sure that are reflective of the market - and NOT stagnant. You should look at your hedged pipeline and look at your historical pull through to see if it needs to be adjusted. Many little actions add up to profit when you react. Do not wait as you do not know how long rates will stay at this level.

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