A secondary department is often misunderstood by many. It deals with many terms that seem very complex and very few people truly understand the secondary market and how it operates. Because of that, many secondary departments operate in a vacuum, often in a manner that generates limited information or data. Our secondary manager, Jonathan Yosha, has run a secondary department and truly understands the operational complexities of today’s secondary processes. His approach is similar to matchbox in that his objective is uncovering how you can do more with less: How can you operate more efficiently with less risk? How can you grow your secondary options without taking on more people? How can you spend more time analyzing the report, rather than creating it?
Jonathan’s past experiences as a secondary manager forced him to mature the department – by implementing a PPE from a rate sheet, switching Loan Origination Systems, moving away from best efforts to mandatory processes, selling to investors or selling to the agencies, selling Servicing Released to Retaining Servicing, and valuing MSRs. Along the way, he encountered some challenges and works everyday to ensure our clients do not experience them as well.
Our Secondary Offerings are a collection of services that improve your secondary maturation and assist you in breaking down the associated complexities into simple terms and processes.
Looking for your agency approval and not sure where to start? matchbox will act as the designated project lead to gather, review, update, and submit your Fannie Mae, Freddie Mac or Ginnie Mae application. We provide a full service offering to complete your agency application.
As information is received it will be reviewed for content and feedback will be provided as to whether the information is suitable for your application. matchbox will consult, advise, and assist in ensuring that your application package is acceptable for submission.
Once the application is complete, a full review with management will be conducted and a full copy of the application package will be provided. matchbox will also interface with the agencies and the lender application team to receive updates on the application. Upon request for further information, matchbox will work with your team to compile and review for submission.
matchbox plays quarterback on your agency applications. We manage and review the entire process, ensuring you stay on the right path and don’t fumble the process.
Agency Implementation / Comprehensive Agency Approval Support
Congratulations, you received your agency approval! Now what?
Agency approvals are great assets in this environment. These approvals allow mortgage bankers to create and sell mortgage-backed securities (MBS) and make available an increased set of products with pricing tied directly to the MBS market. Taking this step involves numerous operational updates to a lender’s workflow and impacts multiple departments including secondary, capital markets, post-closing, accounting, quality control, compliance, IT, and servicing.
There is a tremendous learning curve to create securities, sell direct, retain servicing and deliver loans directly to the GSEs; it is taxing on staff and resources. matchbox’s consulting and fulfillment services are focused on helping clients shorten this learning curve by rolling out procedures in an efficient manner and avoiding the standard challenges most bankers face.
matchbox is committed to helping clients mature and maximize the benefits of your agency approvals in bringing these offerings to market quickly with less stress. Our services allow clients to be relieved of the burdens of knowing the required steps to implementation … we’ll do the necessary work for you.
Secondary Progress Report
Quite often, no one truly understands secondary workflows and strategies other than the secondary manager. A successful secondary execution strategy juggles many exposure items, from stale or inefficient processes to new Loan Origination System/technology, market/pricing volatility, reporting, data integrity, and new personnel.
Change is constant, but secondary goals are not. Lenders must maximize execution and minimize risk by closely managing margins, the pipeline, and loan delivery. One key element is how secondary adapts their strategies in a changing environment.
Lenders often unknowingly have significant margin and pricing exposure that is easily masked in a rallying rate environment. matchbox offers an independent Secondary Progress Report to ensure margins are maximized while exposure and leakage are eliminated.
Our Secondary Progress Report engagement is a quarterly, biannual, or annual review of secondary operations. The ever-changing environment creates new stress points, areas of exposure or leakage and new management strategies. We work directly with secondary personnel and management to dig into the established policies and procedures, analyze its strategies and ultimately, its reporting and execution.
With decades of secondary experience, matchbox has developed a keen sense of secondary expertise that ranges from lock desk policies all the way up to securitizations. In this review matchbox will draft a complete report detailing its findings and recommendations which will be reviewed with both the client and hedge advisory firm. Its goal is to highlight findings in a productive and transparent forum to encourage positive responses and implementations.
Loan Officer Compensation Review
Years after the Loan Officer Compensation regulations were implemented, tremendous exposure still exists. Exposure doesn’t start and end with paying all loan officers a flat commission or dollar amount. Managing Loan Officer Compensation has far reaching effects from fair lending, accounting, and disclosures to lock procedures, margins, and net revenue.
Exposure is widespread but where does the responsibility lie? Compliance? Secondary? Quality Control? The lines are blurred and the exposure often goes unnoticed, eroding margins and allowing audit exposure to build over time. Isn’t it time to audit your exposure brought on by Loan Officer Compensation restrictions?
matchbox has created a Loan Officer Compensation Review package for lenders who are interested in ensuring they have an updated and compliant compensation structure while also addressing the second-hand exposure to profitability and compliance.