WHY SELL LOANS SERVICING RELEASED?

Many banks are asking themselves this very question. We believe that for some banks the answer is obvious that they cannot continue to burden their balance sheet with the unhealthy choice of adding too many long -term, fixed- rate mortgages and should consider freeing up funding to add higher earning assets.

For other banks the need to drive additional fee income far outweighs booking residential mortgages in their portfolio, so switching to selling loans servicing released makes sense.

We understand that making residential loans for your portfolio has been key to your investment strategy so you might find that the best solution for your bank or credit union may be to do some of both! That is, by offering both the traditional portfolio/servicing retained product as well as adding a new secondary market servicing released alternative, banks can continue to invest in their communities as well as add additional fee income.

Of course now, by offering customers a choice, you not only will increase your volume but will be able to buy up the price of your portfolio/servicing retained offering in addition to earning additional fee income when the customer chooses the sold/servicing released alternative. This is a winning combination for your customer and your bank!