643 Bair Island Rd. Suite 102
Redwood City, CA 94063
TOLL FREE 877.969.9000
In today’s society, banks and lenders are still constantly facing “challenges” to their business. The challenges come from many different sources, whether from regulatory agencies, consumers or technology. Adapting and responding to these challenges is often difficult, time extensive, and costly. Credit Masters offers “Solution Based” products for many of these challenges.
- Restoration of Confidence and Trust
- Regulatory Agency Oversight – Federal Reserve Bank (FRB), Office of the Controller and Currency (OCC), Office of Thrift Supervision (OTS), Federal Deposit Insurance Corporation (FDIC) Trouble Asset Relief Program (TARP)
a. Multiple Agencies overseeing Banks.
b. Different oversight mandates for each agency.
c. Conflicts between agencies.
- Liquidity and Reserves Requirements
a. Maintaining adequate Reserves and Liquidity requirements.
b. Adjusting for Foreclosure Losses.
c. Recapitalization when Liquidity requirements are not sufficient.
d. Tier 1, 2 & 3 Capital requirements.
- Stock Prices and Earnings Per Share
a. Maintaining Stock Prices.
b. Maximizing Earnings Per Share.
c. Fiduciary Duty to Shareholders.
- Risk Management
a. Loss Mitigation:
1. Foreclosure Prevention.
2. Loan Modification.
3. Government Programs – HAMP, Hope for Homeowners, etc.
4. Homeowner Litigation.
5. Buy Back and Repurchase Demands.
6. Real Estate Owned (REO) Management.
b. Fraud and Theft Losses
- Technology Changes
1. Are Branches Profitable?
2. Better to Consolidate and decrease branches?
3. Satellite Branches.
1. Replacing traditional bank operations.
2. Automatic Teller Machine (ATM) operations.
3. On-line banking.
c. New software and hardware improvements.
- Lending Issues
a. Finding Qualified Borrowers.
b. Underwriting Standards.
c. Portfolio Management.
d. Availability of Funds for Lending:
1. Declining Deposits.
2. Lack of funds from Private Securitization.
3. Fannie, Freddie, VA & FHA only entities “purchasing” loans.
4. Cost of Funds available to lend.
e. New Lending Standards being established.
f. Evaluation of Borrower Default Risk.
- Servicing Issues
a.Accuracy of Servicing Records.
b. Adequate staffing for Modification and Foreclosure mitigation.