Offering a mortgage solution creates a strong foundation for serving your community, which is why it is important for smaller financial institutions to have a strategy for mortgage originations. Not doing so makes you vulnerable to losing a deposit or consumer loan customer to an institution that does.
There are many options to consider, such as:
- Referring your business to a mortgage broker down the street
- Hiring a mortgage department to originate and sell to an investor on a broker, mini-correspondent or correspondent basis
- Becoming an active seller/servicer to FNMA, FHLMC or FHLB
All options pose different problems, levels of liability, risk and reward. To better educate yourself on options that will support your mortgage origination efforts, please click here.