A Regional Bank SuccessfullyCRA Portfolio Loan Case Study2

Connects with a Mortgage Company to Help Improve Its CRA Portfolio

 

Overview

Brought to you by Promontory Interfinancial Network, Residential Mortgage Network helps financial institutions to buy or sell pools of residential mortgages and to expand their residential mortgage opportunities by finding correspondent relationships. The service’s
network of potential buyers and sellers of mortgage whole loans, coupled with its team of seasoned mortgage professionals, helps banks to locate assets they otherwise would have difficulty finding. A recent connection between a regional bank in the Midwest and a national mortgage company demonstrates how banks and other financial institutions have experienced success using the Residential Mortgage Network (or “the Network”).

The Connection

A mortgage company specializing in the origination and sale of residential whole loans utilized the Network to identify buyers offering competitive prices for newly originated CRA mortgage portfolios. Meanwhile, a regional bank in the Midwest contacted the Network’s Residential Mortgage Desk for assistance in searching for loans that would improve its CRA performance rating. 

Customized Solution

Residential Mortgage Network’s team of residential mortgage professionals obtained from the bank its underwriting guidelines, as well as geographic and other loan preferences. Based on these parameters, the team was able to work with the mortgage company to identify custom loan pools originated by the mortgage company that met the regional bank’s specifications.

The Power of Connection

The Residential Mortgage Network team succeeded in helping the bank to locate nearly a quarter of a million dollars in CRA loans that met its underwriting criteria. Given the success of this deal – and the ease of the Network’s streamlined process, as well as access to product from national institutions – the bank decided to obtain almost $3 million of additional CRA loans from various sellers through the service. The Network’s team continues to notify the bank about available CRA loans within its identified specifications. The service created a channel to national mortgage lenders that this regional bank wouldn’t have access to on its own, increasing the bank’s ability to buy more CRA loans and improve its CRA performance rating.

Benefits to Participants

Buyers

  • Access newly originated inventory from top national originators and aggregators of residential mortgages.
  • Customize your experience and receive updates when the Network receives mortgage pools that meet your buying criteria.
  • Discover more opportunities to purchase pools of seasoned mortgages from investment funds, banks, and mortgage originators.
  • Choose mortgage pools consistent with your bank’s asset goals, including its CRA requirements.

Sellers
  • Tap into an active buyer community that includes mortgage companies, nonbank lenders, mortgage investors, funds, and banks.
  • Save time and resources with the ability to access predetermined buyer criteria and originate loan pools accordingly.
  • Choose to receive buy-side inquiries from motivated buyers, or send your loan tape to the Residential Mortgage Desk so that they can perform prospecting on your behalf.

Correspondent
  • Connect with national mortgage firms and banks that buy residential mortgage loans in the secondary market, on a delegated or non-delegated correspondent basis, to expand your product offerings or decrease back-office costs.

View more Residential Mortgage Network case studies or contact us.