By: Alec Hollis | CU Business    It’s no secret to anyone in banking: rates
July, 2018 Alec Hollis, CFA, Director, ALM Strategy Group Michael Oravetz, Associate, ALM Strategy Group
By: Alec Hollis & Benedict Voit  |  CUNA Councils   Success in mortgage lending requires
January, 2018 Alec Hollis, CFA, Director, ALM Strategy Group Mortgage pipeline hedging falls under the broad
Hedging interest rate risk is a fundamental component to sound balance sheet management. In this
Competitiveness in the mortgage marketplace has pushed risk management and profitability strategies to the forefront. Originating conforming mortgage loans to be sold to the agencies exposes your institution to pricing risk from the time of the initial commitment to the borrower until the time that the loan is committed for sale to the agencies. Currently, many institutions pay the GSEs to hedge their pipeline for them, at a significant cost. Effective mortgage pipeline management presents an opportunity to enhance return and profitability through risk reduction and cost savings.
By: Alec Hollis | CB Insights There are 3 important hedging strategies for banks that can
Institutions engaging in mortgage loan production and sale to investors (e.g. the agencies) understand this operation can be highly profitable, but also can by highly cyclical. Changes in mortgage pricing can lead to significant variability in profitability. Learn how to protect yourself from the volatility of the mortgage market.
By: Emily Hollis | CU Business The two most common forward agreements credit unions use for
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