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Hedging with Compass
The Case For Hedging

In today’s competitive market, lenders need to stay on top of current market trends, employ the most robust technology available and ensure they are maximizing the return on each and every loan sale.  Compass has worked with many lenders, from those embarking on a broker to banker transition to the larger lender who is just now experiencing competition or market compression such that hedging is being sought after to increase their competitive edge.   

There are four key drivers for embarking down the path of hedging:

  1. Improved Execution on Loan Sales:
    • Realize Mandatory/Best Efforts Spread
    • Widen Investor Base and Delivery Type
    • Initiate Bulk Delivery
    • Employ More Competitive Pricing & Products
  2. Streamlined Operations:
    • Move to Common Guidelines
    • Experience Shipping & Execution Efficiencies
  3. Create Additional Niche Products
  4. Create Greater Product Flexibility
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