Tag: Retention

How To Help Loan Retention At Your Bank

Data on Loan Bank Performance

When is the right time to refinance an existing commercial real estate loan on your books? Refinance too early and you most likely forgo a larger credit spread. Refinance too late and the borrower seeks additional competition. In previous analysis we showed that the average spread between refinancing with and without competition is about 40bp. Thus, we advocated putting a retention program in place that covers any loan above 1.2x debt service coverage that does not have some form of prepay protection.

Proactive Strategies To Keep Loan Customers (and $170k)

Using ARC For Profitability

What is your bank’s strategy for keeping good loan customers? If you are like many banks, you may not have a formal strategy and with prepayment speeds averaging 24% for fixed rate loans. That is a tremendous amount of value running out the door.

 

Subscribe to Tag: Retention