[Overseas Property Forum NEWS] Mortgage Bank Liquidity. Key Metrics and Price to Earnings Ratios

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Mortgage Bank Liquidity. Key Metrics and Price to Earnings Ratios

Posted To: The Garrett Watts ReportThese tech companies have been using their cash on acquisitions and to develop new products. Mortgage bankers increased their liquidity in big ways last year, but we see very little of that cash being used on acquisitions. What’s your ratio of Account Execs + loan officers to full-time employees? If you read page six of Flagstar’s latest prospectus, they have 3,411 full-time equivalent employees and 336 AE’s and LO’s for a 10.1-to-1 ratio. It’s probably not a meaningful metric to compare yourself to unless you’re in the servicing business like Flagstar, but we find all ratios to be of interest. By the way, Flagstar’s prospectus is for their new capital raise of $250 million. We think very highly of Flagstar’s people and believe, absolutely, that...(read more)Forward this article via email:  Send a copy of this story to someone you know that may want to read it.

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