When you shift your focus to maximizing Final Profit Contribution (FPC), a world of exciting opportunities emerges. Viewing volatility not as a challenge but as a driver of FPC empowers you to approach mortgage banking with a bold, risk-aware offensive strategy.
So, how can your rate sheets rise above the competition?
Imagine offering:
- A float-down product that reassures borrowers
- An extended lock period for added flexibility
- A unique combination like an extended lock period with a float-down
- Or perhaps an extended lock period paired with a rate cap
These products, developed through a volatility-driven FPC lens, are not only attractive but also hedge-able, giving you a competitive edge in the market.
By adopting a profit-hedging strategy to pipeline risk management, you position yourself to confidently manage a lock pipeline filled with innovative, derivative-based products. And when you take a holistic approach to aligning the primary market, secondary market, and mortgage servicing operations, you’re primed to consistently achieve higher Final Profit Contribution.
The question is: Are you ready to lead the charge and redefine what’s possible in your business?
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