Mortgage Banking Is About Balance

A report from Stratmor Group’s Jim Cameron outlines why mortgage banking is all about balance. It explores how balancing the realm of strategy, risk management, capital markets and operations can help mortgage bankers succeed.

“Each day is filled with decisions that often involve balancing competing objectives in a way that is aligned with corporate mission, vision and values,” wrote Cameron.

“The mortgage banking balancing act plays itself out as executives and shareholders wrestle with critical strategies and risk management decisions. Do we take the risk for a higher return? Can we manage the risk, or should we avoid it altogether?”

He also stated that classic mortgage banking decisions on tradeoff occur within the capital markets. According to Cameron, capital market executives are always attempting to strike the right balance when it comes to managing the price/volume dynamic with the best execution and product offerings.

The report contained an interesting infographic, which broke down the metrics that senior production operations executives from the top 25 lenders use to manage their business. Productivity was the most popular answer at 34%, cycle time followed with 22%, the cost to produce and customer satisfaction came in at 15%, loan quality came in at 6% with 7% of those executives naming other metrics.

Click here to take a deeper dive into the balancing act that is mortgage banking.