Mortgage lenders are countering continued low volume by beefing up
At Poughkeepsie Savings Bank, servicing is supplying fee income and
Rates, along with processing fees and other expenses, have led to an
"It's been that way for the last couple of years" throughout the
For instance, Poughkeepsie Savings would give up about 50 basis points
"Hopefully, the value of servicing will be more than the loss you incur
Poughkeepsie Savings is remaining ahead of the game, he added. "We're
The thrift, like many others, is also keeping mortgages on its books to
Streetcar Brothers Mortgage Corp. is also retaining more of the
"We tend to retain more of the servicing as things slow up," said F.
The company, which has weathered many lending cycles since its founding
Banks are also looking to subprime loans to boost their mortgage unit's
The mortgages, commonly called B and C loans, are made to borrowers with
But the hands-off approach is rapidly changing, said Hugh Miller,
The company, which had no bank clients a few years ago, now works with a
Banks are recognizing that it is in their best interest to originate
"If they don't, customers will take their loan applications and the rest
By working with conduits, banks are able to get riskier loans off their
And demand for these loans is heating up on Wall Street, Mr. Miller