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Posts tagged with "rates"

12/19/2019

Interest rates and rate floors: survive and thrive in 2020

Last year, when rates were rising, Deluxe warned that banks should learn from the 2008 financial crisis that rate cuts are not always predictable, and can be devastating to earnings. And at the beginning of this year, when interest rates were fluctuating unpredictably, Deluxe wrote about structural factors placing pressure on banks’ margins. In both…

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09/19/2019

The key to mortgage originations? Savvy marketing

We entered the summer in a surprise low-rate mortgage environment. But given the sudden and volatile path to where we are now, many lenders aren’t staffed to capitalize on a rate-and-term environment. Against this backdrop, lenders need tools to help them protect and grow their portfolio; maintain a healthy, balanced pipeline; and prioritize their prospects….

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09/18/2019

Mortgage lending and the interest rate environment

Anyone tracking mortgage interest rate activity this year has been on a roller coaster ride. After rising in April, they began their decline in May, and they’re still low. While forecasts predict steady growth in the housing market, a quick glance at the latest housing data shows some of the volatility and challenges facing mortgage…

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07/25/2019

Reference rates and the LIBOR sunset: Cause for concern?

In June 2017, the Alternative Reference Rates Committee (ARRC) selected the Secured Overnight Financing Rate (SOFR) as the replacement for USD LIBOR. SOFR is based on the overnight interest rate received for lending cash against Treasury securities. These debts are backed by the collateral of US Treasuries, making SOFR a secured rate. Futures and overnight…

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05/15/2019

Rates have dropped. How does that impact mortgage lending?

Is your phone ringing off the hook for mortgage applications and refinances yet? Mortgage lenders have been anticipating an increase in applications because of this juggernaut of a job market, with unemployment rates hovering at historic lows. In March, the Bureau of Labor Statistics reported that the national unemployment rate stayed at a rock-bottom 3.8%….

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04/24/2019

Why banks should institute rate floors if they haven’t already

Ah, the ever-changing economy. One day interest rates are up, the next day they’re down. Not exactly a roller coaster, but it’s at least a merry-go-round. Those rates impact the mortgages banks offer to their customers, adjustable rate mortgages most of all. Customers choose ARMs because they’re betting the rates aren’t going to go up…

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