American Banker (04/11/08) P. 1; Berry, Kate
The housing downturn and mortgage crisis have given regional banks the opportunity to grab market share lost by mortgage brokers. These banks are hiring loan officers who once worked for the top lenders, opening production offices and joining forces with their peers to get better pricing when they sell loans to Fannie Mae and Freddie Mac. "The longer and more protracted the downturn is, the greater the opportunities," says Michael Koch, senior vice president and director of residential lending at Spokane, Wash.-based AmericanWest Bank. Banks are in the driver's seat in the current market because they have a steady source of funding from deposits and the Federal Home Loan Banks, can outsource secondary-market activities and are exempt from licensing requirements, according to American Home Bank Chairman and CEO James Deitch. Chuck Quick, president and CEO of Little Rock, Ark.-based Pulaski Mortgage Co., adds that banks benefit from low funding costs and a steep yield curve.
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