SALES + MARKETING
MORTGAGE WAREHOUSE FINANCING
Independent Mortgage Banks’ Increased Market Share Creates
Increased Demand for Residential Mortgage Warehouse Financing
SINCE THE FINANCIAL CRISIS of 2008, residential mortgage
lending has gone through a lot of changes. One big change
was that many depository banks decreased their mortgage
production lines of business or closed that line of business
entirely. This was due to increased regulatory costs
that resulted in lower efficiency ratios, combined with
losses, fines, and unwelcome press as a result of historical
expanded underwriting criteria that contributed to the
financial crisis. Further, the lucrative private securitization
market all but dried up as the industry relied on “plain
vanilla” underwriting requirements of the agencies (FNMA,
FHLMC, and GNMA). These factors resulted in a substantial
increase to IMB market share, which now accounts for over
60% of the total $1.6+ trillion industry.
Since IMBs, by definition, are non-depositories, they
rely on third-party warehouse financing lines of credit,
which are provided by both depository banks and
broker dealers. Warehouse lines are generally one-year
facilities that are fully collateralized by the underlying
mortgage note. Although a warehouse facility is one
year, each advance is generally less than 30 days.
Mortgage loans are sold on a loan-by-loan basis to
investors or aggregated in bulk sales to investors, or an
originator can co-issue
FNMA, FHLMC, or
For more information
GNMA securities to be
about residential
sold into the secondary
mortgage warehouse
market to a variety of
lending, read Sterling
investors. Warehouse
National Bank’s white
lenders control the
collateral and flow
paper, “5 Things
of funds during the
to Look for in a
funding and purchase
Residential Mortgage
period, finally providing
Warehouse Lender”
leftover proceeds to the
online at connect.snb.
IMB after the
com/warehouse.
warehouse lender
is fully paid.
COMPUTERS VS. CLOSERS
IT’S WISE TO CONSIDER how tech-
nology, automation, and artificial
intelligence will impact our future,
but should we fear for our sales jobs?
While phones, homes, and automated
customer service calls become more
and more intelligent, the necessity
for a human touch in sales experi-
ences is as important as ever.
As technology will inevitably
continue to change the way
salespeople reach their customers
and generate leads,
all signs indicate
that robots will never be able to
fully replace talented salespeople—
here’s why.
A HUMAN TOUCH
OR A ROBOT’S POKE?
People’s purchasing behavior often
defies logic, especially when it comes
to major investments and costly busi-
ness partnerships. Through empathy,
emotion, and energy, a human sales-
person can produce an angle and gain
the trust required to satisfy someone’s
“incomputable” needs.
AN OPPORTUNITY
OR AN ENCROACHMENT?
The best salespeople will incorporate
new innovations into their work, not be
gradually replaced. They will recognize
how technology can help them gain
access to leads, spaces, and insights to
improve their output.
NEW SALESPERSON
OR NEW SALES TOOL?
It is believed the average salesperson
spends 80% of their time qualifying
leads and only 20% closing. Many
of the automation features of sales
are created to cut through the busy
work so closers can get down to
closing. Machine learning and data
analytics may also reveal which
tactics will increase the productivity
of the sales team.
If you’re interested in learning about sales experts and why they’re poised to gain the most from
sales assistance technology, continue reading at connect.snb.com/sales.
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