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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 current, comprehensive analytics 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:
Improved Execution/Profitability on
Loan Sales:
Realize Mandatory/Best Efforts
Spread
Sell Specific Closed Loan Best
Execution Policy
Initiate Bulk Delivery
Streamlined Operations:
Lock/Sell to Investor at Closing,
Not Lock
Move to Common Guidelines
Experience Shipping & Execution
Efficiencies
Establish Strategic Relationships:
Widen Investor Base and Delivery
Type
Agency Relationship with Option
for Retaining Servicing
