Choosing the right Mortgage Hedge Advisor

Whitepaper gives the low-down on how to find the ideal partner to expand business

Choosing the right Mortgage Hedge Advisor

Finding a trusted hedge advisor is crucial for mortgage lenders seeking to expand their business and increase profitability, according to a new whitepaper by Mortgage Capital Training (MCT).

The seven-page whitepaper by the San Diego-based firm, a provider of capital markets services and hedge advisory, contains helpful tips on how lenders can forge a “trusted partner” relationship with a hedge advisor.

With a track record of more than 20 years, MCT’s technology-centric service is renowned for providing a combination of trading expertise, industry leading software and market guidance. With that in mind, the whitepaper is a must-read guide for any lender either struggling to grow their business or actively planning to stay ahead in the market and increase profitability.

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Lenders are told to look for five qualities in a mortgage hedge advisor. The ideal candidate should have the ability to provide a customized service experience; be open to offering testimonials and case studies; embrace the latest API integrations; provide additional services; and be willing to recommend other vendors in the lender’s interest.

Lenders should consider their company’s short and long-term goals to determine whether the advisor of their choice is able to grow with their business. Either way, the ideal hedge advisor should support the lender’s goals.

Doing everything in the lender’s interests means the hedge advisor should be prepared to grant the client greater autonomy and not make them dependent on their services, according to MCT.

Transparency is therefore another important quality, and a hedge advisor’s reporting should provide meticulous, loan-level detail.

Lenders should seek a one-stop-shop hedge advisor to avoid having to form partnerships with several companies - which only adds to the workload - and look for a commitment to service by signing month-to-month contracts - a sure sign the advisor is “willing to win business every month”, the whitepaper points out.

A professional hedge advisor should provide added value by providing additional services, including rate sheets, lock desk, “and much more”.

To illustrate the point, the whitepaper provides a comprehensive list of reasons why a lender should pick a hedge advisor with a lock desk.

The ideal hedge advisor should also be tech-savvy in order to stay one-step ahead of the competition - a crucial advantage in times of market volatility, when having access to that knowledge “can make or break your business’s success”, MCT warns.

Embracing technological innovation enables professional hedge advisors to focus their time on building relationships while letting the tech do more of the heavy lifting. 

The whitepaper highlights one such tech tool - Application Programming Interfaces (APIs), which enable apps to communicate without the need for direct user intervention.

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A great hedge advisor can leverage such a tool for their client’s benefit as an API’s seamless data entry reduces input errors and saves time improving efficiencies for lender clients.

At crucial times, hedge advisors are able to act selflessly in the lender’s interest by recommending other vendors beyond their own services to find solutions.

Great hedge advisors are “extremely connected” with the secondary market, and if they are unable to provide the answer to a specific problem, they can connect the lender client to an expert who can.

To find out everything you need to hire the ideal mortgage hedge advisor, download the whitepaper now.