While the Dodd-Frank Wall Street Reform and Consumer Protection Act was designed to protect both consumers and lenders from high-risk investments, it has inadvertently created lending obstacles and heavy compliance burdens for smaller banks. That has left many of them to watch their market share shrinking in the wake of tougher regulations.
Restrictions created by the quality residential mortgage exemption may also further work to push borrowers to larger banks with the resources and manpower to quickly and effectively research properties and make decisions regarding mortgage applications.
While most small banks are unable to expand their resources in an effort to compete with larger firms on the same scale, they can take advantage of CRS Data's Bankers' Suite, which can give them an edge over larger lenders and help them to increase their bank's market share.
CRS Data can help community banks look at all of the loans made for properties in a particular area, seeing both their own share of the current market and that of other banks. This data can be viewed in easy-to-read charts and graphs, stratifying data based on the geographic area, loan amounts and maturity date.
Using this snapshot of the market, lenders can see which areas of the market in which they have a good share of the current business and work to increase their share in that sector even further.
CRS Data's market share tools can also be used to allow lenders to see their competitors' share of the market as well. The data can show lenders what parts of the market they may be falling behind in compared to other lenders, identifying areas in which they may want to expand their efforts. Lenders can also see what their competitors' portfolios look like, to get a more complete picture of what market opportunities they may be missing.
Of course, purchases only represent part of the mortgage market, in which refinancing continues to play a major role. By viewing their loan portfolio by maturity date, lenders can also identify potential opportunities for refinancing business, which can further improve their share of the market. The same tools can be used to identify potential refinancing opportunities for loans currently held by other lenders.
“The quality of our work would not be as good without CRS. And it would take hours to get the work done without CRS."
CHARLIE HARPER - Sunmark Community Bank