Consistent Counterparty Risk Check-Ups are Key to Sustained Mortgage Banker Profitability
Posted To: The Garrett Watts Report
We almost never see mortgage bankers doing formal, ongoing due diligence on their counter-party risk, and it always concerns us. A quick definition : “A review of how problems at a firm you do business with could negatively impact your own business." For example… A headline in American Banker caught our eye last week when we read that regulators issued a Prompt Corrective Action (PCA) letter to TierOne Bank. A PCA letter the final warning after Memorandums of Understanding and C&D’s have failed to bring is about the needed changes at the bank. The OTS has rejected the TierOne recapitalization plan and gave the bank till April 30 to enter into a merger agreement with a stronger bank and until May 31 to close the deal or raise additional capital, an amount estimated to…(read more)
Related posts:
- Nebraska-based TierOne Bank holding company says it needs investor, buyer or merger partner
- Counterparty Risk: The Mortgage Insurers
- Neb.’s TierOne sell 32 branches to SD bank
- 5/4/10–Ambac Update, CDI Bill, European Counterparty Risk
- Reverse Mortgage Exit Motivations; Assessing Counterparty Risk; TILA & HOEPA Fee Based Triggers; HUD Training
