Correspondent Blog

With a flat and low yield curve, borrowers’ demand for long-term fixed-rate loans is high.  Furthermore, based on the forward market and most analysts’ predictions, the yield curve is expected to stay low and flat in 2020. The difference between five and ten-year loan rates is currently only nine basis points, and the difference between…

Geopolitical Tensions Ebb But Remain a Factor While the extreme tensions following the U.S. killing of a key Iranian general have subsided, tensions still remain.  While official Iranian military actions may be sidelined for now, they have a roster full of proxy militias no doubt willing and able to conduct smaller-scale havoc. This fact is…

Unfortunately, in 2020, most bank websites are nothing more than brochure-ware. That is a problem as not only can a bank’s website be its most efficient source leads, but it should also be the best source of conversions (leads that turn into new accounts and loans). While there are several hundred banks that do handle…

The December jobs report was a tad disappointing versus expectations, but solid enough to keep the Fed firmly in pause mode, but a couple details in the report will nag at them.  Job gains totaled 145,000 in December versus 160,000 expected and while that gain pales in comparison to the 256,000 print in November, that…

The early reports of a retaliatory missile strike by Iran on Iraqi military bases housing U.S. troops last night initially sent yields lower as thoughts of a widening crisis erupted. Initially, the 10-year Treasury rallied 12bps hitting a low of 1.70%, the lowest since early November. However, when reports started filtering out that no U.S….

Last month, the Federal Reserve released its 7th, tri-annual U.S. payments study, and, as usual, it had some eye-opening trends that all banks need to consider for their long-term strategic planning. For example, while consumers have always said they preferred debit cards over cash, last year was the first year in US history where consumers…

If you are like most banks you have your credit approval and risk process based around loan size. The assumption is that the larger the loan the more risk the bank is taking on so a greater level of risk review is needed. But, suppose the data didn’t bear that assumption out? If that assumption…

Geopolitical Tensions Greet New Year The U.S. killing of a top Iranian general in Baghdad last Friday and the threat of Iranian retaliation is likely to overhang the market this week. There are dozens of U.S. military installations and other assets in Iraq and surrounding areas that could be at risk of reprisal. If that…