Can Risk Management Be Profitable?

Published in: FMS Magazine As regulated as the banking industry is, risk management can seem like a “check-the-box” activity. In a great piece titled “The Profitable Side of Risk Management,” Michael Giarla rejects the perception of risk management as a necessary evil...

Risk Management: The Key to Profitability

Published in: CU Business Financial professionals at times may have a “check the box” attitude toward risk management. Sometimes viewed as a necessary evil, risk management activities may have a perception of detracting from institutional profitability. While it is...

Advanced Mortgage Pipeline Hedging Techniques

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.