With all the elements we touched on Friday, the funny thing is that to elevate your success you don't have to be a trading wizard, have superpowers, or need a managed account provider to execute your trades. You need an organized approach, a spirit of communication, and the desire to persistently improve.
Let's put together a list of points in the processes where profits leak:
- Rate Sheets -> Not competitive, too competitive, out of sync with Secondary Market
- Lock Desk -> Policies that lack controls or induce fallout, both partial and complete
- Loan Data Integrity -> Inaccurate, incomplete, delayed
- Fallout -> Too much/little coverage = Costly pair-offs or Gain-on-Sale erosion
- Hedging -> Poor hedge ratios, excessive or avoidable trading or poorly focused plan.
- Best Execution -> Fails to identify all relevant opportunities or factors, eligibility and/or timing issues.
- Loan-to-Trade Allocation -> Fails to optimize the capacity of existing commitments.
- Underwriting Bottlenecks -> Expensive extensions, pair-offs, or missed opportunities
- Investor Remittance Issues -> Failure to identify and resolve under-payment errors.
Phew, and as they say "but wait there's more..."
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