All eyes have been on the Federal Reserve as the housing industry tries to account for the Fed-driven slowdown of the housing market. As a result, lenders have been closely watching and planning for how this impacts their portfolios and business given the increase in mortgage interest rates. To help shed some light on how companies are strategically navigating the economic changes in the market, we’re hosting a Q&A with Alec Hollis, managing director at ALM First Financial Advisors, during the Vanguard Forum at HousingWire Annual.
HW Media CEO Clayton Collins will join Hollis on stage to dig into what Hollis is witnessing when it comes to the impact of the current rate environment and what a lot of his client discussions have been focused on. For background, ALM First provides valuation and investment advisory services for its clients.
Hollis will also touch on two of the biggest topics that lenders are concerned about — liquidity and MSR hedging. This includes addressing the pros and cons that he is seeing in the space and how it is impacting IMBs.
Here’s a quick preview of what Hollis will be covering in his Q&A.
HousingWire: What else would you highlight when it comes to the biggest risks that lenders are facing right now and what they should be watching for?
Alec Hollis: Absolutely. Last point would probably be a broad one — focus on what you can control. This includes establishing conservative policies and procedures. Some lenders try to “over-automate” functions, which can be a pitfall of attempting to scale. Scaling can be achieved through creating strong policies and procedures — a process. If people follow a process then the results become more consistent. MCD example. But this should include ensuring flexibility is possible when it’s required. Ensuring your analytics are time-tested is also vital in a fast-moving market. This includes pull-through and hedge ratios. Back-testing hedging relationships — by taking investor price relative to a TBA — can be valuable in ensuring your hedge ratios are set properly. “Empirical durations”.
Don’t miss Hollis’ Q&A at HousingWire Annual to get an even deeper breakdown of these essential concepts. There has been a lot of changes in the housing space, but with advice from leaders like Hollis, companies can find ways to remain successful.
Alec Hollis will be speaking at The Vanguard Forum, an invitation-only, sub-segment of HousingWire Annual on Oct. 4. All invited guests are HousingWire Vanguard Award winners and other high-growth C-Suite professionals. Join us at HW Annual for the content, connections and insights you need to win in this environment. To register, go here, and if you have questions about this forum or how to get invited to the Vanguard Forum, reach out to firstname.lastname@example.org.
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