The Difference Between Making Versus Keeping Loans
One of the biggest mistakes that some bankers make is believing that banks are in the business of making loans. It is true that banks make loans, but originating a loan is unquestionably an unprofitable business. Banks earn an acceptable return on capital by keeping loans, not by making them. We recently worked with our lender on a refinancing opportunity that we want to showcase to explain our strategy.
Why Making Loans is Unprofitable