Independent Mortgage Banks (IMBs) are in a difficult position due to the current mortgage markets. These IMBs typically have only one thing on their plate: mortgage transactions. This has allowed them to succeed for most of this century until today. IMB’s are feeling the pressure more so now than before.

Even though IMB’s have to take extra steps for survival, such as looking for new sources of revenue, connecting with new borrowers and staying ahead of industry trends, they are still feeling the burden. As the demand for loans has decreased, this affects their ability to create capital and to have access to much needed liquidity. Declining refinance trends and increasing regulatory pressures have greatly impacted the profit margins of IMBs.

• IMBs are transaction-oriented, monoline mortgage lenders
• Tough mortgage markets make survival more difficult
• Have to look for new sources of revenue and connection with new borrowers
• Decreased demand for loans affects their access to capital and liquidity
• Refinance trends and regulatory pressures have impacted their profit margins

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