Raising Capital to Help Grow Your Mortgage Operation
Posted To: The Garrett Watts Report
We’ve been writing a lot on the profits of high performing mortgage bankers in 2009. Last year looks to have been a great year for most mortgage bankers, especially for those who originated FHA loans and sold them through mandatory delivery commitments. Higher performers made in excess of 65 basis points in pre-tax profits. Common denominators among high performers are the size, components and deployment of their capital. The higher performers had a strong balance sheets and were very liquid. They used their capital wisely to exploit opportunity in the market. Some of the key uses of capital and liquidity were the following: Capital was used to procure and build warehouse lending capacity to support their production expansion strategies Increase warehouse capacity helped to improve the...(read more)Forward this article via email: Send a copy of this story to someone you know that may want to read it.