Secondary Marketing
Pipeline hedging, pull-through analysis, best execution, whole-loan trading, MSR valuation, warehouse banking relationships, broker-to-banker transitions, financial benchmarking, and much more!
So, you’ve just taken over as CEO of a modest-size mortgage banker which does its own hedging, or of a large aggregator buying from correspondents and brokers nationwide. It’s your first gig as Top Dog, and your background is in sales, or accounting, or ops. The capital markets area (used to be called Secondary Marketing, but Capital Markets sounds so much cooler!) is impressive, with intense-looking nerdy types each staring at three monitors (makes browsing Facebook, ordering on Amazon, and sorting out one’s Fantasy Football strategy so much easier!).
Your EVP of Capital Markets, an impressive-looking fellow in his thirties sporting a Stanford MBA, motions for you to come into his office while he finishes up a Very Important Trade…
The difference between a highly profitable mortgage lender and a mediocre one sometimes comes down to the methods, tools, and experience deployed to minimize risk and optimize execution. There are many ways to run your Secondary Marketing / Capital Markets operation and knowing the difference between the most and least effective means is a key differentiator.
