When a customer purchases a loan, an institution then underwrites, funds, and services this loan. This institution is usually a bank. However, one of the challenges that a bank might face is that it cannot run out of money. As a result, the bank will need to sell the loan to a secondary market so they can have the funds to continue to offer more loans.
Finance Your Small Community Bank
Even small community banks can refinance themselves with the help of banks for bankers. The goal of these types of banks is to improve the value of a community-based financial institution by providing products and services at an affordable price. A bank for bankers also does not compete with the smaller community banks but instead profits off of providing services to them.
Services Offered by a Bank for Bankers
A banker's bank will help with secondary mortgage services by helping with processing, closing, underwriting, and servicing. Many banker's banks do not have minimum loan requirements and do not place restrictions on how many loans are necessary to get started with a loan.
Receive Payments Anywhere
Secondary market mortgage loans are serviced at the headquarters and the actual payments can be collected at the community bank. This makes it easier for your bank and also for your customers.
Ideal for New Community Banks
Working with a bank for bankers is great if you are a new institution that is just getting started offering loans to lenders. This is because you will be provided with guidance on how to make your first loans. You will also be given advice on how to remain compliant with your loan parameters.
Experienced Banks Can Benefit from Underwriting Services
However, if you are experienced with processing loans and simply need someone to underwrite your loans, a bronze-level service is a better option. By underwriting, you will be able to provide your customers with more competitive rates.
Services Might Be Available for Customers Outside the State You Operate In
When finding a bank for bankers, you may even be able to process and close documents for customers who do not reside in your state. You will need to find out the state in which the bank is able to service and they'll help you with all of the processing. Therefore, regardless of the type of community bank you run, a bank for bankers can play a vital role when you are offering mortgages.
For more information, contact a bank for bankers near you.