Capital Assets Weekly Comments

Mia Condon, and David Cluck
Making Marketable Mortgages (“MMM”)

FHN Financial Capital Assets Corp. periodically offers training for our community bank and credit union customers on a variety of topics related to lending and loan portfolio management. One of the most popular forums for training we’ve offered was a three-day training session entitled, “Making Marketable Mortgages.” Most of our customers make really good loans, but many have adopted practices during the manufacturing of those loans that result in an impairment to their liquidity and marketability. The vast majority of our customers hold most of the loans they make as opposed to selling them, therefore the prospect of documenting loans intended for portfolio to secondary market standards may seem unnecessary. However, as customers learned during our Making Marketable Mortgages (“MMM”) seminar, small things can reap big benefits in improving the liquidity of their loans. And, most of our recommended changes have little to no impact on customer service or expectations, and rarely affect the processing timeline, but they can make a significant impact on the liquidity, marketability, and market value equity of the mortgage portfolio.

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