Comparing Bananas to Oranges. Sorting out the Bad Apples.

On Monday, we explored how using a notional loan can fine-tune your approach to targeting the ideal rate lock—ensuring your rate sheet delivers a competitive edge. But achieving the best execution goes beyond simply identifying the top spot price. It’s about layering in key elements that drive smarter, more actionable results.

To truly optimize execution, it’s essential to limit results to those you can act upon. For example, factoring in forward window constraints means aligning with your post-closing turnaround time. While post-closing carry income can normalize results effectively, it’s crucial to weigh extension cost trends against the potential gains of warehouse carry.

When faced with close calls, consider an investor’s reliability or nuisance factor. A robust best-ex tool can apply discounting metrics to account for take-out partners who may not consistently meet your expectations.

These factors demonstrate why the right best execution strategy is more than just crunching numbers—it’s about creating a framework that supports better decisions and delivers results you can trust.

> > As featured in Les Parker's TMSpotlight "Follow" daily newsletter: Home builder sentiment, the housing market's thermostat, continues heating up!

Comparing Bananas to Oranges. Sorting out the Bad Apples.
PowerSeller Solutions LLC, Greg Crosby November 20, 2024
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