Your mission, should you choose to accept it, is to tackle one of the most critical challenges in mortgage banking: creating a competitive, hedgeable rate sheet. It's all in a day's work for those balancing the delicate dance between the primary and secondary mortgage markets.
Here's the catch: letting the production team set rates might feel convenient, but it's not a sustainable strategy. Rates must be firmly anchored to achievable investor take-out pricing. The initial profit margin isn't one-size-fits-all-it should adapt based on loan product, purpose, features, channels, and producers.
Enter the "best execution" model, your secret weapon for maximizing pricing precision across lock windows. Now, take it further: by integrating a "Notional Loan" concept, you define the type of loans you want to attract, adding strategic specificity to the vanilla eligibility framework. This is where targeting gets sharp, and your offerings gain clarity.
With these refinements, you're not just setting rates-you're crafting a competitive edge. Tomorrow, we'll dive deeper into dialing in an even better price. Stay tuned-there's more to uncover!
> > As featured in Les Parker's TMSpotlight "Follow" daily newsletter: Ethan Hunt from Mission Impossible: "Hope is not a strategy."
