If a mortgage broker wants to broaden their product mix how do you suggest they incorporate sub prime alternative lending into their product mix?
David Kennedy: There isn’t a one-size fits all answer. There are certainly a lot of variables that are uniquely involved in each respective lenders case. Let me use an analogy to make a point. Think of the mortgage industry as a machine. Over the last five years the engine has become bigger and faster. Mortgage companies and lending institutions have added processors and loan officers at staggering rates to keep up with demand. Each corporate or branch location knows it’s own “fuel economy” – how many applications and closing do we need funded each month to hit our revenue targets, cover our operating expense, and most importantly, keep our company productivity-to-employee ration optimized. In our opinion, conforming and sub prime product diversity is key. Marketing campaigns, when constructed in consultations with our firm can help maintain the right balance of pipeline activity across all product types to make sure the machine continues to operate with efficiency. We specialize in id
