# Garrett, McAuley & Co.

> Garrett, McAuley & Co. is a national mortgage banking advisory firm, founded in 2003. We help banks, credit unions, and independent mortgage lenders increase revenues, control costs, and better manage risk through profitability and best-practices reviews, FOCIS due diligence reviews for warehouse lenders, valuations, M&A advisory, warehouse lending consulting, secondary marketing reviews, servicing oversight, and CFPB readiness.

## Main pages

- [Services](https://garrettmcauley.com/services): All advisory service lines
- [Who We Serve](https://garrettmcauley.com/who-we-serve): Banks, credit unions, and independent mortgage lenders we have advised
- [Testimonials](https://garrettmcauley.com/testimonials): Client results in their own words
- [About](https://garrettmcauley.com/about): The firm and its principals
- [Insights](https://garrettmcauley.com/insights): Articles and commentary on mortgage banking
- [Events](https://garrettmcauley.com/events): Speaking engagements and webinars
- [Contact](https://garrettmcauley.com/contact): How to reach the firm

## Services

- [FOCIS Due Diligence Reviews](https://garrettmcauley.com/services/focis-reviews): Independent due diligence on mortgage bankers and bank mortgage divisions for their warehouse lenders and investors. A FOCIS Review is, in effect, a safety-and-soundness exam: Financial reporting and controls, Operations, Compliance and management capability, Interest-rate risk and secondary marketing, and Systems and servicing.
- [Profitability & Best-Practices Reviews](https://garrettmcauley.com/services/profitability-best-practices): A comprehensive on-site review of a company's financial, operational, compliance, interest-rate, systems, and servicing risks, with practical recommendations and reporting tools that help increase revenues, control costs, and better manage risk.
- [Budgeting & "What-If" Scenarios](https://garrettmcauley.com/services/budgeting-what-if): Build realistic budgets and stress-test them against rate, volume, and margin scenarios before you commit.
- [Internal Audit & Best-Practices Programs](https://garrettmcauley.com/services/internal-audit): An internal audit charter, policies and procedures, and an audit calendar that meet the requirements Fannie Mae and Freddie Mac place on their approved lenders, paired with an on-site risk review that satisfies warehouse banks' annual review needs.
- [Secondary Marketing Reviews](https://garrettmcauley.com/services/secondary-marketing): Reviews of pipeline management, hedging, pricing, and execution to sharpen secondary-marketing performance and strengthen interest-rate risk management.
- [Warehouse Lending & WHIP Implementation](https://garrettmcauley.com/services/warehouse-lending): Implementation, enhancement, and review of warehouse lending programs. Drawing on more than 40 engagements across 28 separate programs, we advise on credit and operational risk, policies and procedures, and reporting aligned with industry best practices.
- [Servicing & Subservicer Oversight](https://garrettmcauley.com/services/servicing-subservicer-oversight): Subservicer selection and oversight, subservicer audits, and subservicing-versus-in-house analysis, including support for Agency (Ginnie Mae and Fannie Mae) approvals.
- [CFPB Readiness Reviews](https://garrettmcauley.com/services/cfpb-readiness): Assess and strengthen your compliance posture so a regulatory exam holds no surprises.
- [M&A Advisory & Due Diligence](https://garrettmcauley.com/services/ma-advisory): Buy-side and sell-side advisory and due diligence for acquirers of mortgage bankers and bank mortgage divisions, including assessments in preparation for OCC targeted mortgage-banking examinations.
- [Strategic Advisory](https://garrettmcauley.com/services/strategic-advisory): Exploratory and ongoing strategic counsel for lenders weighing growth, structure, viability, and investment decisions in mortgage banking.
- [Mortgage Company Valuations](https://garrettmcauley.com/services/valuations): Independent, defensible valuations of mortgage banking companies and divisions for transactions, planning, and litigation.
- [TPO (Third-Party Origination) Consulting](https://garrettmcauley.com/services/tpo-consulting): Guidance for lenders building or refining third-party origination, including wholesale and correspondent channels.
- [Litigation Support](https://garrettmcauley.com/services/litigation-support): Expert analysis, testimony, and business valuations for legal proceedings, grounded in decades of mortgage-banking experience.

## Insights

- [Mortgage Profit Volatility, Wells Fargo Governance Failures Reviewed](https://garrettmcauley.com/insights/mortgage-profit-volatility-wells-fargo-governance-failures-reviewed): This issue covers 14 years of mortgage profit-per-loan data, the Wells Fargo board report on sales practices, stock market super-stocks, and US-China economic ties.
- [Warehouse Lending Down Sharply, MBA Proposes GSE Reform](https://garrettmcauley.com/insights/warehouse-lending-down-sharply-mba-proposes-gse-reform): Warehouse outstandings fell sharply across lenders, the MBA released its GSE reform proposal, and the CFPB drew scrutiny over its RPM fine restitution logic.
- [Subservicing Is Easy to Outsource. The Risk Isn't.](https://garrettmcauley.com/insights/subservicing-risk-oversight): You can hand off the servicing of your loans, but you can't hand off the responsibility for them. Why that's a problem now, and how to fix it.
- [A Memorial Day Tribute to America's Fallen Service Members](https://garrettmcauley.com/insights/the-garrett-mcauley-report-may-24-2026): A Memorial Day remembrance featuring Arlington National Cemetery, Gold Star Mothers, and the American battle cemeteries abroad at Normandy, Meuse-Argonne, and the Netherlands.
- [Hyperinflation Lessons From Yugoslavia, Hungary, and Weimar](https://garrettmcauley.com/insights/the-garrett-mcauley-report-may-17-2026): A tour of history's worst hyperinflations, plus the case for dividend-growth stocks and foreign bank shares like DBS, Bangkok Bank, and ICICI.
- [Steve Stone Joins the Firm; Bigger Lenders Earn More per Loan](https://garrettmcauley.com/insights/the-garrett-mcauley-report-may-3-2026): Steve Stone joins as Managing Director, MBA data shows larger lenders earn more per loan, and mortgage stocks lag the S&P so far in 2026.
- [Late Fee Revenue Per Loan, and Citigroup's Three Bailouts](https://garrettmcauley.com/insights/the-garrett-mcauley-report-may-10-2026): MBA data on late fee income per serviced loan, Citigroup's history of three bailouts, and mortgage insurers' first quarter new insurance written.
- [Mortgage Origination Profits Hit 16.8 Basis Points in Fourth Quarter](https://garrettmcauley.com/insights/the-garrett-mcauley-report-april-12-2026): MBA's fourth-quarter profitability numbers, the case for renting over owning, and the SEC's proposal to drop quarterly filings for semiannual reports.
- [Wells Fargo Sheds Its Asset Cap; FICO Versus VantageScore](https://garrettmcauley.com/insights/the-garrett-mcauley-report-march-8-2026-8b03): The Fed lifts Wells Fargo's growth cap after seven years, plus office-to-apartment conversions in Boston and the FICO versus VantageScore debate.
- [Mortgage Stocks in Review: UWM Looks Underpriced for a Rate Drop](https://garrettmcauley.com/insights/the-garrett-mcauley-report-january-11-2026): A year-end tour of lender and bank stock performance, with the case that markets have priced UWM far too low and notes on picks from Fairfax to Raiffeisen.
- [FHA Delinquencies Climb While Origination Profits Return](https://garrettmcauley.com/insights/the-garrett-mcauley-report-december-7-2025-7qrp): Serious FHA delinquencies jump even as 75% of lenders turned an origination profit in the third quarter, plus a proposal to raise FDIC insurance to $10 million.
- [Mortgage REIT Yield Risks and a Minority Shareholder Warning](https://garrettmcauley.com/insights/the-garrett-mcauley-report-november-9-2025-teju): Why high mortgage REIT dividend yields signal real risk, a caution on taking minority stakes in mortgage companies, and a year-end expense-timing tip.
- [Encompass Costs, ICE Stock, and Vetting Your TBA Broker/Dealers](https://garrettmcauley.com/insights/the-garrett-mcauley-report-october-5-2025): A look at ICE's stock performance amid Encompass cost complaints, plus why deep-dive credit reviews of your MBS TBA broker/dealers matter.
- [Refi share since 1990 and the case for keeping quarterly 10-Qs](https://garrettmcauley.com/insights/the-garrett-mcauley-report-september-28-2025): Refinance share of originations since 1990, surging foreign stock markets, the push for semiannual 10-Qs, and remembrances of Robert Redford and pitcher Steve Dalkowski.
- [Mortgage Profitability Trends and Graham's Weighing Machine](https://garrettmcauley.com/insights/the-garrett-mcauley-report-august-24-2025): MBA data on what share of lenders turn an annual profit, Benjamin Graham on markets, tulip mania as a crypto warning, and a round of grammar gripes.
- [Guild's 1.3x Book Sale and What Cost-to-Originate Really Includes](https://garrettmcauley.com/insights/the-garrett-mcauley-report-july-6-2025-87xc): Mortgage company sale multiples from Headlands to Guild's 1.3x book deal, MBA cost-to-originate data, and Coolidge's defense of the Declaration of Independence.
- [CFPB Pulls 70 Guidance Documents as Milei Scraps Tariffs](https://garrettmcauley.com/insights/the-garrett-mcauley-report-june-8-2025-4oeu): A look back at 2020's record per-loan profits, the CFPB's withdrawal of 70 guidance documents, Jamie Dimon on running JPMorgan, and Argentina's tariff rollback.
- [New York Times Earnings Outpace Its Stock; Rocket Buys Redfin](https://garrettmcauley.com/insights/the-garrett-mcauley-report-april-20-2025): A look at New York Times earnings versus its stock price, why Rocket's Redfin deal could pay off, and odd ETF tickers from YALL to MAGA.
- [Retail Commissions Keep Climbing as Loan Amounts Rise](https://garrettmcauley.com/insights/the-garrett-mcauley-report-february-23-2025-wfex): MBA data shows retail sales commissions rising alongside loan amounts, while Fannie Mae and the MBA diverge widely on 2025 origination volume forecasts.
- [Mortgage Bankers String Together Two Profitable Quarters](https://garrettmcauley.com/insights/the-garrett-mcauley-report-december-29-2024-w1fy): Q3 2024 MBA results show 17 bps production income and a second straight profitable quarter, plus the case for outsourcing fulfillment at $2,000 per loan.
- [Mortgage Employment Lags Volume Drop, Pointing to More Layoffs](https://garrettmcauley.com/insights/the-garrett-mcauley-report-june-16-2024): Mortgage staffing has fallen far less than loan volume, signaling more layoffs ahead, plus the case for dividend stocks like Procter & Gamble.
- [MBA Q1 Results Improve but Originators Still Losing Money](https://garrettmcauley.com/insights/the-garrett-mcauley-report-june-2-2024): First quarter net production income improved but stayed negative for an eighth quarter, plus a takedown of Jack Welch's lavish GE retirement package.
- [Servicing Costs per Loan Fall 35% Over the Past Decade](https://garrettmcauley.com/insights/the-garrett-mcauley-report-may-19-2024-66dv): Direct servicing costs dropped from 14.4 to 9.3 basis points since 2011, plus the challenge of earning a profit when refinances are just 11% of volume.
- [Foreign Bank Stocks, Campus Administrator Bloat, and Ellis Island](https://garrettmcauley.com/insights/the-garrett-mcauley-report-january-21-2024): Foreign bank stock returns, the growth of university administrators versus faculty, and the 1892 opening of Ellis Island.
- [The Case for Taking Conventional Servicing In-House](https://garrettmcauley.com/insights/the-garrett-mcauley-report-october-29-2023): MBA data on loans serviced per FTE, why conventional-only servicers should weigh leaving their subservicer, and the appeal of 6.5% coupon MBS.
- [Mortgage Job Cuts Lag Volume Declines, Leaving Excess Capacity](https://garrettmcauley.com/insights/the-garrett-mcauley-report-august-13-2023-k8d9): BLS data show mortgage employment down just 18.9% against far steeper volume declines, plus why secondary desks must track gross and pull-through adjusted hedge coverage.
- [Bank Origination Volumes Slide, and Seven Mortgage Disasters](https://garrettmcauley.com/insights/the-garrett-mcauley-report-october-2-2022): Top bank originators show 2022 volume declines, paired with lessons from seven mortgage company disasters the authors watched unfold.
- [MBA Report Shows Lenders Lost 4.7 Basis Points in Second Quarter](https://garrettmcauley.com/insights/the-garrett-mcauley-report-september-4-2022): Second quarter MBA Performance Report results show an average 4.7 bps loss per loan, with only 58% of lenders profitable and refis falling to 17.8% of closings.
- [Bank of America's $100 Billion Bond Problem](https://garrettmcauley.com/insights/the-garrett-mcauley-report-august-18-2024): Five-year performance numbers for ten big banks, Bank of America's $100 billion in unrealized bond losses, and an early test of negotiable Realtor commissions.
- [Ten Things to Do in 2023 and the History of Big Buydowns](https://garrettmcauley.com/insights/the-garrett-mcauley-report-january-8-2023-lpfc): The annual Ten Things To Do list for 2023, memories of 5-4-3-2-1 buydowns when rates hit the teens, plus quarterback passing yards and To Kill a Mockingbird at 60.
- [Comerica's Surprise Exit From Warehouse Lending After 110 Years](https://garrettmcauley.com/insights/the-garrett-mcauley-report-june-25-2023-xawq): Comerica abruptly exits warehouse lending despite a strong team and profitable book, plus regional bank index tracking and rumors of rising Freddie Mac repurchase demands.
- [PennyMac to Acquire Cenlar Subservicing as M&T Names Wolfe](https://garrettmcauley.com/insights/the-garrett-mcauley-report-february-22-2026-gxtu): PennyMac's $740 billion Cenlar subservicing deal, Matt Wolfe taking over M&T warehouse lending, rising Q4 delinquencies, and a new MBA webinar on fatal mortgage mistakes.
- [Inspection Waivers Hit 28% of GSE Loans as Pulte May Exit FHFA](https://garrettmcauley.com/insights/the-garrett-mcauley-report-june-7-2026): Property inspection waivers reach 28% of GSE loans, Pulte's national intelligence post could revive GSE privatization, plus inflation abroad and AI job fears.
- [Four Risk Management Steps Before You Chase Growth](https://garrettmcauley.com/insights/four-risk-management-steps-before-you-chase-growth): Covers cash flow reporting, loans-per-employee benchmarks, a wholesale team seeking placement, and a cashflow model flaw involving restricted cash.
- [MBA Webinar: Ten Things Mortgage Companies Must Do in 2016](https://garrettmcauley.com/insights/mba-webinar-ten-things-mortgage-companies-must-do-in-2016): This issue previews a February 17 MBA webinar on 2016 business goals, with commentary on long-term stock winners, subprime blame, and grammar in analyst reports.
- [Barney Frank Joins Bank Board, Promontory Faces NY Fine](https://garrettmcauley.com/insights/barney-frank-joins-bank-board-promontory-faces-ny-fine): This issue covers Barney Frank's appointment to Signature Bank's board, director performance, Warren Buffett's Kraft Heinz windfall, a warehouse fraud guilty plea, and Promontory's regulatory troubles.
- [Secondary Marketing Blame, Wells Fargo Margin Decline](https://garrettmcauley.com/insights/secondary-marketing-blame-wells-fargo-margin-decline): Covers hedge advisor missteps, Wells Fargo's 11-quarter NIM slide, mortgage REIT yields, rate prediction limits, and concentration risk in commercial real estate.
- [CEO Succession Planning, Bank Simplicity Drive Performance](https://garrettmcauley.com/insights/ceo-succession-planning-bank-simplicity-drive-performance): This issue covers CEO succession strategy, the value of operational simplicity, Fed chairs' academic backgrounds, J.P. Morgan's regulatory costs, and the origins of Chase Manhattan Bank.
- [Lock Desk Pricing Discipline, MSR Multiples at Major Banks](https://garrettmcauley.com/insights/lock-desk-pricing-discipline-msr-multiples-at-major-banks): Covers using the lock desk to enforce pricing discipline, MSR valuation multiples at big banks, PHH concentration risk, and Q4 gain-on-sale margins.
- [San Francisco Travel Tips for Client Appreciation Dinner](https://garrettmcauley.com/insights/san-francisco-travel-tips-for-client-appreciation-dinner): Ahead of the Client Appreciation Forum, the issue offers San Francisco restaurant picks, neighborhood highlights, earthquake memories, and famous quotes about the city.
- [Dimon Calls Mortgage Lending Most Painful Business, Ocwen Surges](https://garrettmcauley.com/insights/dimon-calls-mortgage-lending-most-painful-business-ocwen-surges): Covers JP Morgan's mortgage woes, Ocwen's six-fold servicing growth, QM compliance tips, layoff strategies, and warehouse lending news.
- [Bank Loan-to-Deposit Ratios Low, CFPB Exam Notice Policies](https://garrettmcauley.com/insights/bank-loan-to-deposit-ratios-low-cfpb-exam-notice-policies): Covers FDIC data showing banks at 69% loan-to-deposit ratios, CFPB examination notice practices, Amazon valuation skepticism, and motivating loan officers.
- [Mortgage Banking Income Drops Sharply, Efficiency Ratios vs. ROE](https://garrettmcauley.com/insights/mortgage-banking-income-drops-sharply-efficiency-ratios-vs-roe): Bank mortgage income falls as much as 72%, purchase vs. refi trends emerge, and efficiency ratios show a surprising relationship with community bank returns on equity.
- [Measuring Performance, FHA Bailout, and QM Community Bank Impact](https://garrettmcauley.com/insights/measuring-performance-fha-bailout-and-qm-community-bank-impact): This issue covers the case for rigorous metrics in mortgage banking, FHA's first-ever Treasury bailout, and why community banks can no longer dabble in mortgages.
- [Mega-Bank Returns Disappoint, Mortgage Delinquencies by Product](https://garrettmcauley.com/insights/mega-bank-returns-disappoint-mortgage-delinquencies-by-product): This issue covers 15-year stock performance of mega-banks, mortgage delinquency rates by loan type, CFPB compliance committee tips, and investor behavior in mutual funds.
- [IMB Return on Equity Hits 127%, Loan Officers Top $1M](https://garrettmcauley.com/insights/imb-return-on-equity-hits-127-loan-officers-top-1m): Independent mortgage companies post record quarterly returns, top loan officers earn seven figures, and Lee Farkas walks free after nine years of a 30-year fraud sentence.
- [Ten Videos Worth Watching This Weekend](https://garrettmcauley.com/insights/ten-videos-worth-watching-this-weekend): The team takes a day off and shares 10 entertaining videos, from Marx Brothers comedy to Earl Weaver ejections and Jack Nicholson's diner scene.
- [Q2 Delinquencies Double, FHA Hits 15 Percent Nationwide](https://garrettmcauley.com/insights/q2-delinquencies-double-fha-hits-15-percent-nationwide): Second-quarter delinquency rates nearly doubled across all loan types, with FHA loans leading at nearly 15 percent and New Jersey topping state rankings at over 20 percent.
- [Dodd-Frank at Ten, Mortgage Benefit Costs Top 25 bps](https://garrettmcauley.com/insights/dodd-frank-at-ten-mortgage-benefit-costs-top-25-bps): This issue covers Dodd-Frank's capital legacy, ways to trim benefit costs per loan, a Ginnie Mae forbearance buyout rule, and running with the bulls in Pamplona.
- [Mortgage Servicing Productivity Flat Over Decade, Examiners Offer Pandemic Relief](https://garrettmcauley.com/insights/mortgage-servicing-productivity-flat-over-decade-examiners-offer-pandemic-relief): This issue covers servicing staffing trends, pandemic examiner guidance, the 1927 Yankees, DACA, Berkeley in 1970, and best efforts vs. mandatory sales.
- [Mortgage Profit Per Loan Trends, Negative Rates Risk to Banks](https://garrettmcauley.com/insights/mortgage-profit-per-loan-trends-negative-rates-risk-to-banks): This issue covers historical origination profitability, the dangers of negative interest rates for banks, IMPAC's Q1 loss, and warehouse lending program reviews.
- [Bank Preferreds Hold Near Par, Forbearance Hits 22,000 Daily](https://garrettmcauley.com/insights/bank-preferreds-hold-near-par-forbearance-hits-22-000-daily): Bank preferred stocks show resilience amid the selloff, Mr. Cooper reports forbearance surging, and Buffett's case for buying great banks at fair prices.
- [CDS Monitoring for Counterparties, Sell to Agencies Now](https://garrettmcauley.com/insights/cds-monitoring-for-counterparties-sell-to-agencies-now): Covers real-time counterparty risk monitoring via CDS pricing, why mortgage bankers should sell to Fannie and Freddie despite lower prices, and MSR write-down concerns.
- [Q4 2019 Delinquency Rates by State, Concentration Risk for Banks](https://garrettmcauley.com/insights/q4-2019-delinquency-rates-by-state-concentration-risk-for-banks): Covers Q4 2019 mortgage delinquency rates for five major states, concentration risk, Antarctica temperatures, and the 2020 Tokyo Olympics uncertainty.
- [MSR Multiples Flash Warning, UWM's Firm 40 Rule Pays Off](https://garrettmcauley.com/insights/msr-multiples-flash-warning-uwms-firm-40-rule-pays-off): Q4 MSR valuations show some lenders overreaching on multiples, while UWM's 40-hour work week policy draws praise as a model for sustainable culture.
- [Prepayment Penalties Could Cut Mortgage Rates Sharply](https://garrettmcauley.com/insights/prepayment-penalties-could-cut-mortgage-rates-significantly): This issue proposes optional prepayment penalties to narrow the Treasury-mortgage spread, reviews 2019 stock returns, and shares the firm's Ten Things to Do in 2020.
- [Amazon Cloud Dominance and IRS Audit Rates Hit New Marks](https://garrettmcauley.com/insights/amazon-cloud-dominance-and-irs-audit-rates-hit-new-marks): This issue covers cloud provider revenue rankings, Amazon's long-term free cash flow strategy, falling IRS audit rates, and oddities of the English language.
- [Gateway Mortgage's Bank Buy Succeeds, Stock Crash Lessons](https://garrettmcauley.com/insights/gateway-mortgages-bank-buy-succeeds-stock-crash-lessons): Covers Gateway First Bank's growth, CEO pay complexity, the 1929 crash in today's terms, Greek bond recovery, and Shoeless Joe Jackson's legacy.
- [Tracking LO Productivity by Quintile, Not Just Averages](https://garrettmcauley.com/insights/tracking-lo-productivity-by-quintile-not-just-averages): This issue covers loan officer performance metrics, LO turnover analysis, rent control, Hong Kong, and baseball pitching records.
- [Mortgage Profits Hit 69 bps in Q2, Negative Rates Unlikely in U.S.](https://garrettmcauley.com/insights/mortgage-profits-hit-69-bps-in-q2-negative-rates-unlikely-in-u-s): Corrected Q2 profit data, why U.S. markets prevent negative mortgage rates, late-cycle bank lending risks, and an MBA webinar for bank mortgage executives.
- [Mortgage Delinquencies Ease, Negative Rates Spread in Europe](https://garrettmcauley.com/insights/mortgage-delinquencies-ease-negative-rates-spread-in-europe): Covers Q2 delinquency trends, negative-rate mortgages in Scandinavia, long-term bank stock investing, and money manager fee math.
- [Ten Things to Do in 2015 Still Relevant in 2019](https://garrettmcauley.com/insights/ten-things-to-do-in-2015-still-relevant-in-2019): A 2015 checklist on revenues, costs, and risk management holds up surprisingly well four years later.
- [1981 Rates, Mortgage Resilience, and MH370 Mystery](https://garrettmcauley.com/insights/1981-rates-mortgage-resilience-and-mh370-mystery): This issue covers 1981's brutal rate environment, lessons for mortgage companies on surviving downturns, and new findings on Malaysia Airlines Flight 370.
- [MSR Valuations Compared, Cross-Selling Servicing Falls Short](https://garrettmcauley.com/insights/msr-valuations-compared-cross-selling-servicing-falls-short): This issue covers how major servicers carry MSRs, mortgage debt ownership breakdown, negative-rate mortgages in Denmark, and a regulator meeting gone wrong.
- [MBA Profit Trends Worsen, CEO Pay Scrutiny at Axos Financial](https://garrettmcauley.com/insights/mba-profit-trends-worsen-ceo-pay-scrutiny-at-axos-financial): Covers the three-year slide in mortgage production profits, outsized CEO pay at Axos Financial, female CEO representation in the S&P 500, and real estate value comparisons.
- [Mr. Cooper Trades at 65% of Book, Mortgage Volume Outlook Dims](https://garrettmcauley.com/insights/mr-cooper-trades-at-65-of-book-mortgage-volume-outlook-dims): This issue covers Mr. Cooper's depressed stock valuation, a stress test on mortgage origination volumes, and reflections on blues music and celebrity name changes.
- [BB&T-SunTrust Deal, Fannie and Freddie Reform, Mortgage Rate Outlook](https://garrettmcauley.com/insights/bb-t-suntrust-deal-fannie-and-freddie-reform-mortgage-rate-outlook): This issue covers the BB&T-SunTrust merger, GSE reform options, the long-term mortgage rate outlook, and advice on cutting low-producing loan officers to improve earnings.
- [Bank Sale Dilemma, Cost-Cut Spreadsheets, and Override Pay Rules](https://garrettmcauley.com/insights/bank-sale-dilemma-cost-cut-spreadsheets-and-override-pay-rules): This issue covers phasing out production overrides, running cost-cut scenarios before acting, a community bank sale, and Hall of Fame voting anomalies.
- [Refi Activity Picks Up, Bank Capital Risk After Dodd-Frank](https://garrettmcauley.com/insights/refi-activity-picks-up-bank-capital-risk-after-dodd-frank): This issue covers signs of rising refinance activity, whether Dodd-Frank capital rules reduced bank risk, IMB Conference highlights, and trade deficit nuances.
- [Stock Buybacks, McDonald's EPS, and Broker-to-Banker Shifts](https://garrettmcauley.com/insights/stock-buybacks-mcdonalds-eps-and-broker-to-banker-shifts): This issue covers how share buybacks drive earnings growth at McDonald's and Northrop Grumman, plus why some mortgage bankers may benefit from reverting to brokerage models.
- [Mortgage Commissions Rose 5 BPS, Banks Weigh Exit Questions](https://garrettmcauley.com/insights/mortgage-commissions-rose-5-bps-banks-weigh-exit-questions): Topics include Q3 commission trends by volume, four questions banks should ask before exiting mortgage banking, and thoughts on markets and democracy.
- [New Fannie Loan Limit Hits $484,350, China BRI Reaches 117 Nations](https://garrettmcauley.com/insights/new-fannie-loan-limit-hits-484-350-china-bri-reaches-117-nations): This issue covers the new Fannie Mae loan limit, China's Belt and Road Initiative debt risks, football brain injury research, and assorted history and personal observations.
- [Mortgage Banking Profitability Volatile, Conforming Limits Rise in 2018](https://garrettmcauley.com/insights/mortgage-banking-profitability-volatile-conforming-limits-rise-in-2018): Five quarters of production income data show wild swings in margins, big bank volumes fall, and FHFA raises conforming loan limits to $453,100.
- [Big Bank MSR Multiples, Q3 Originations Ranked](https://garrettmcauley.com/insights/big-bank-msr-multiples-q3-originations-ranked): Q3 MSR valuations and multiples at Wells, Chase, BofA, and U.S. Bank are compared, with top origination rankings and notes on Amazon margins and dividend culture.
- [VA Loan Guaranty Limits, Encompass Software Help](https://garrettmcauley.com/insights/va-loan-guaranty-limits-encompass-software-help): This issue clarifies the VA guaranty cap, offers a referral for Encompass software support, and includes notes on investing, markets, and Hugh Hefner.
- [Branch Deposits, Amazon Profits, and Board Overreach](https://garrettmcauley.com/insights/branch-deposits-amazon-profits-and-board-overreach): This issue covers branch cost-of-funds advantages, Amazon's thin earnings despite massive market cap, Lending Club losses, and why strong boards often harm banks.
- [Chuck Berry, Corporate Culture, and Mortgage Banking](https://garrettmcauley.com/insights/chuck-berry-corporate-culture-and-mortgage-banking): This issue shares a personal Chuck Berry story, reflects on how corporate culture forms at the top, and covers mortgage banking and market topics.
- [Warehouse Lending Fraud Risk, Bank Count Falls to 5,000](https://garrettmcauley.com/insights/warehouse-lending-fraud-risk-bank-count-falls-to-5-000): Topics include warehouse lending fraud red flags, the OCC fintech charter, declining bank numbers, deposit channel shifts, and a community bank stock pick.
- [Ten-Year Treasury at 4%, Bank Board Complacency Risks](https://garrettmcauley.com/insights/ten-year-treasury-at-4-bank-board-complacency-risks): Covers a potential rise in 10-year Treasury yields to 4%, the danger of board complacency at successful banks, and Ben Carson heading HUD.
- [Key Mortgage Metrics, Loan Size Profitability, and Wells Fargo](https://garrettmcauley.com/insights/key-mortgage-metrics-loan-size-profitability-and-wells-fargo): Topics include ten performance ratios for mortgage bankers, the trade-off between basis points and dollars on loan size, and the Wells Fargo scandal.
- [Q3 Mortgage Delinquency Rates: FHA Hits 8.96 Percent](https://garrettmcauley.com/insights/q3-mortgage-delinquency-rates-fha-hits-8-96-percent): The MBA National Delinquency Survey for Q3 2018 shows FHA delinquencies at 8.96%, far above the 4.47% overall rate and 4.16% for VA loans.
- [Mortgage REIT Risks Rise as Fair Lending Scrutiny Stays Hot](https://garrettmcauley.com/insights/mortgage-reit-risks-rise-as-fair-lending-scrutiny-stays-hot): Covers mortgage banking liquidity, Annaly Capital's risky expansion into commercial lending, and persistent Fair Lending enforcement by OCC, Fed, and FDIC.
- [Closing Agent Due Diligence, College Costs in 18 Years](https://garrettmcauley.com/insights/closing-agent-due-diligence-college-costs-in-18-years): Topics include closing agent risk controls, soaring college costs, immunotherapy's Nobel Prize roots at UC Berkeley, boxing phrases, and comma usage.
- [Q2 Net Production Income by Channel, Supervisory Guidance Clarified](https://garrettmcauley.com/insights/q2-net-production-income-by-channel-supervisory-guidance-clarified): Second-quarter net production income by retail and wholesale channel, plus an interagency statement walking back Cordray-era guidance-as-enforcement policy.
- [Loan Officer Commissions Rose Sharply Since 2009, Fed Rate Debate Grows](https://garrettmcauley.com/insights/loan-officer-commissions-rose-sharply-since-2009-fed-rate-debate-grows): This issue tracks LO commission trends since 2009, questions core inflation metrics, examines the federal deficit, and weighs in on the Fed raising rates.
- [Mortgage Margins Squeeze Benefits, LO Pay Models Rethought](https://garrettmcauley.com/insights/mortgage-margins-squeeze-benefits-lo-pay-models-rethought): Covers cutting benefits costs to save basis points, rethinking loan officer compensation, branch downsizing, trade war dynamics, and proxy advisory reform.
- [Wholesale Mortgage Losses Deepen, Bank Seeks Acquisition Target](https://garrettmcauley.com/insights/wholesale-mortgage-losses-deepen-bank-seeks-acquisition-target): Wholesale lenders post steep per-loan losses, a bank buyer seeks mortgage company targets, and NYCB executive payouts complicate any sale.
- [Ten Things to Do in 2018 and Ten Keys to Survival](https://garrettmcauley.com/insights/ten-things-to-do-in-2018-and-ten-keys-to-survival): A short break from the regular issue, with two practical guides: Ten Things to Do in 2018 and the even briefer Ten Keys to Survival.
- [Why Profits Vary So Much Among Mortgage Lenders](https://garrettmcauley.com/insights/why-profits-vary-so-much-among-mortgage-lenders): A brief issue pointing to a featured article on mortgage lender profit variation, with a note on Harvey's impact on the Houston area.
- [Mid-Year Check: Ten Things To Do in 2017](https://garrettmcauley.com/insights/mid-year-check-ten-things-to-do-in-2017): A light summer issue features the firm's Ten Things To Do in 2017 checklist for a mid-year progress review.
- [MBA Report Shows 10 bps Profit, Harvard Endowment Retreats](https://garrettmcauley.com/insights/mba-report-shows-10-bps-profit-harvard-endowment-retreats): Q1 2017 mortgage earnings hit just 10 bps, Santander auto loan income verification raises red flags, and Harvard moves to simplify its endowment.
- [Cybersecurity Gaps at Mortgage Firms, Venezuela Inflation Warning](https://garrettmcauley.com/insights/cybersecurity-gaps-at-mortgage-firms-venezuela-inflation-warning): This issue covers counterparty and cyber risk for mortgage lenders, hyperinflation lessons from Venezuela and Yugoslavia, tax simplification, and Willie Mays.
- [CEO Presence Skews Decisions, LendingClub Fund Faces 58% Redemptions](https://garrettmcauley.com/insights/ceo-presence-skews-decisions-lendingclub-fund-faces-58-redemptions): Topics include owner bias in management meetings, LendingClub's troubled $800M fund, cheap bank stocks that stay cheap, and Venezuela's command economy food crisis.
- [Ten Keys to Success and a Few Laughs](https://garrettmcauley.com/insights/ten-keys-to-success-and-a-few-laughs): This issue features the Ten Keys to Success handout plus three cartoons while the team takes a week off.
- [Freddie Mac Buybacks Drop 95 Percent, Bank Capital Returns Vary Widely](https://garrettmcauley.com/insights/freddie-mac-buybacks-drop-95-percent-bank-capital-returns-vary-widely): This issue covers the sharp decline in Freddie Mac repurchases, major bank shareholder return rates, fair lending resources, and cash flow projection best practices.
- [Pricing Discretion Risk and the Limits of OCC Appeals](https://garrettmcauley.com/insights/pricing-discretion-risk-and-the-limits-of-occ-appeals): Covers fair lending risk in pricing exceptions, the low odds of winning an OCC exam appeal, and a curious New Jersey loan-to-deposit ratio anomaly.
- [CFPB Funding Oversight, MBA Profit Margins Disappoint in 2014](https://garrettmcauley.com/insights/cfpb-funding-oversight-mba-profit-margins-disappoint-in-2014): The issue covers the push for congressional control of CFPB spending, weak 34 bps mortgage production income in 2014, and bond investing lessons from airport debt.
- [CFPB Sworn Testimony Risk, Walter Johnson ERA Records](https://garrettmcauley.com/insights/cfpb-sworn-testimony-risk-walter-johnson-era-records): This issue covers the dangers of 'defensible' LO comp plans under CFPB scrutiny, regulator failure rates, baseball history, and the Eric Hoffer legacy.
- [Segregation of Duties in Hedging, Insider Trading Verdicts](https://garrettmcauley.com/insights/segregation-of-duties-in-hedging-insider-trading-verdicts): This issue covers secondary marketing controls, the Rajaratnam acquittal, Bank of America on Countrywide, signing bonuses for loan officers, and career reinvention.
- [CFPB Targets Individual Officers, Unemployment Data Misleads](https://garrettmcauley.com/insights/cfpb-targets-individual-officers-unemployment-data-misleads): This issue covers CFPB Director Cordray's push to fine individual executives, labor force participation concerns, Amazon valuations, and the Certus Bank scandal.
- [The American Dream, CFPB Pay, and Grapes of Wrath at 75](https://garrettmcauley.com/insights/the-american-dream-cfpb-pay-and-grapes-of-wrath-at-75): This issue reflects on the American Dream through literature, immigrants, and entrepreneurs, while noting a CFPB management trainee earns over $110,000.
- [CFPB Hits Castle & Cooke Hard, Jumbo Market Stirs](https://garrettmcauley.com/insights/cfpb-hits-castle-cooke-hard-jumbo-market-stirs): Topics include the Castle & Cooke consent order, jumbo securitization activity, cost-to-originate risk, and NBA statistical history with a pocket calculator.
- [Comerica's Deposit Mix, Yellen and Greenspan Contrasted](https://garrettmcauley.com/insights/comericas-deposit-mix-yellen-and-greenspan-contrasted): Covers Comerica's strong non-interest-bearing deposits, Janet Yellen's credentials versus Greenspan's questionable doctorate, bank logos, and Singapore banking.
- [CFPB Halts Enforcement Attorneys at Exams, PHH Sale Rumored](https://garrettmcauley.com/insights/cfpb-halts-enforcement-attorneys-at-exams-phh-sale-rumored): Topics include CFPB pulling enforcement attorneys from compliance exams, PHH Mortgage sale rumors, Fannie and Freddie combining MBS platforms, and the shortest-lived de novo bank on record.
- [Repurchase Risk Returns, HMDA Compliance Pitfalls for Lenders](https://garrettmcauley.com/insights/repurchase-risk-returns-hmda-compliance-pitfalls-for-lenders): This issue covers a potential new wave of repurchase demands, HMDA compliance risks under CFPB oversight, MERS audit requirements, and updates to the FOCIS Risk Score methodology.
- [State FHA Delinquency Rates, Bank Earnings Streak Continue](https://garrettmcauley.com/insights/state-fha-delinquency-rates-bank-earnings-streak-continue): Covers FHA and conventional delinquency benchmarks by state, 16 straight quarters of bank earnings gains, and the absence of de novo bank formation.
- [Top 10 To-Do Lists for Mortgage Bankers in 2016](https://garrettmcauley.com/insights/top-10-to-do-lists-for-mortgage-bankers-in-2016): A brief issue pointing readers to key annual checklists for mortgage bankers, covering priorities that apply every year.
- [Broker-Dealer Due Diligence, Bank Mortgage Division Webinar](https://garrettmcauley.com/insights/broker-dealer-due-diligence-bank-mortgage-division-webinar): This issue covers counterparty risk in hedge trades, an MBA webinar on bank-owned mortgage divisions, multifamily diversification, and market observations.
- [Ten Laws of Lending and CECL Data Burden for Banks](https://garrettmcauley.com/insights/ten-laws-of-lending-and-cecl-data-burden-for-banks): A classic credit officer's lending laws gets a fresh look, plus CECL may require banks to gather up to 1,000 times more data than current methods.
- [Ten Things Mortgage Lenders Should Do in 2016](https://garrettmcauley.com/insights/ten-things-mortgage-lenders-should-do-in-2016): A recap of the firm's MBA webinar covers ten practical actions lenders can take to boost revenues, control costs, and manage risk this year.
- [TRID Compliance Gaps Found in 90% of Sampled Loans](https://garrettmcauley.com/insights/trid-compliance-gaps-found-in-90-of-sampled-loans): Moody's flags widespread TRID errors in a 300-loan sample, while Garrett, McAuley expands profitability reviews to cover best practices and risk management.
- [Garrett, McAuley Taking a Week Off, Shares Archive Ads](https://garrettmcauley.com/insights/garrett-mcauley-taking-a-week-off-shares-archive-ads): The firm skips its regular issue and shares a selection of past advertisements highlighting its consulting services for lenders.
- [SF Bay Area Housing Bubble, Small Bank Regulation Reform](https://garrettmcauley.com/insights/sf-bay-area-housing-bubble-small-bank-regulation-reform): This issue covers the case for size-based bank regulators, a San Francisco home that sold for $3M on a $1.89M listing, and immigration's role in American success.
- [Internal Audit for Mortgage Bankers, Castle and Cooke CFPB Fallout](https://garrettmcauley.com/insights/internal-audit-for-mortgage-bankers-castle-and-cooke-cfpb-fallout): This issue covers an MBA webinar on internal audit programs, class actions following Castle and Cooke's CFPB penalty, profitability reviews, and GDP measurement in the digital age.
- [GSE Servicer Net Worth Rules, Loan-to-Deposit Ratio Concerns](https://garrettmcauley.com/insights/gse-servicer-net-worth-rules-loan-to-deposit-ratio-concerns): This issue covers GSE servicer net worth requirements, regulator comfort zones for loan-to-deposit ratios, and upcoming MBA webinars on mortgage benchmarking and bank-owned mortgage divisions.
- [How to Choose, Monitor, and Evaluate a Mortgage Sub-Servicer](https://garrettmcauley.com/insights/how-to-choose-monitor-and-evaluate-a-mortgage-sub-servicer): This issue covers selecting a mortgage sub-servicer, ongoing monitoring practices, and early warning signs of sub-servicer problems.
- [Why Profits Vary and Ten Things To Do in 2015](https://garrettmcauley.com/insights/why-profits-vary-and-ten-things-to-do-in-2015): Reprints cover why mortgage profits vary so widely in a commoditized market and ten priorities for lenders in 2015.
- [CFPB Appeals Process Slammed as Kangaroo Court](https://garrettmcauley.com/insights/cfpb-appeals-process-slammed-as-kangaroo-court): The issue covers CFPB's closed-loop appeals process, peer-to-peer lending skepticism, bank branch concentration, and a community bank owner's 240-fold return.
- [Ten Things Mortgage Lenders Should Do in 2015](https://garrettmcauley.com/insights/ten-things-mortgage-lenders-should-do-in-2015): A focused list of ten priorities for mortgage lenders heading into 2015, covering revenues, costs, and risk management.
- [CFPB Scrutinizes Pre-Approval Letters, Hold Messages](https://garrettmcauley.com/insights/cfpb-scrutinizes-pre-approval-letters-hold-messages): CFPB exam findings on pre-approval letters and hold messages, pricing exception policies, compliance committees, and which top 20 banks are not traditional lenders.
- [Credit Union Commercial Lending Risks and Labor Union Economics](https://garrettmcauley.com/insights/credit-union-commercial-lending-risks-and-labor-union-economics): This issue covers credit union loan growth, the economics of labor unions and Adam Smith, bank M&A, board governance, and mortgage banking accounting.
- [Garrett, McAuley Report Pauses This Week](https://garrettmcauley.com/insights/garrett-mcauley-report-pauses-this-week): The team is swamped this week but shares an attachment and promises the next issue will be out shortly.
- [Mortgage REIT Yields, Deflation Fears Replace Inflation Worry](https://garrettmcauley.com/insights/mortgage-reit-yields-deflation-fears-replace-inflation-worry): This issue covers mortgage REIT valuations, the Fed's bond-buying program and deflation concerns, Wells Fargo's rise, and dividend stock strategies.
- [Mortgage Banking Losses, CFPB Borrower Suits, and Damning Emails](https://garrettmcauley.com/insights/mortgage-banking-losses-cfpb-borrower-suits-and-damning-emails): This issue covers tolerating mortgage unit losses, CFPB fact sheets that may encourage borrower lawsuits, and the lasting dangers of careless email.
- [CFPB Exam Tactics, Castle and Cooke Consent Order Origins](https://garrettmcauley.com/insights/cfpb-exam-tactics-castle-and-cooke-consent-order-origins): Topics include the CFPB's exam approach versus the OCC, the anonymous tip behind Castle and Cooke's consent order, payday lending's future, and City National Bank's origin story.
- [Public Housing Dispersal, Free Markets, and Berkeley's Fourth Street](https://garrettmcauley.com/insights/public-housing-dispersal-free-markets-and-berkeleys-fourth-street): This issue reflects on Section 8 scatter effects, eminent domain failures, and how Berkeley's Fourth Street thrived without government planning.
- [Detroit GO Bonds Treated as Unsecured, Banks Reassess Portfolios](https://garrettmcauley.com/insights/detroit-go-bonds-treated-as-unsecured-banks-reassess-portfolios): Detroit's bankruptcy filing treats general obligation bonds as unsecured debt, raising alarms for bank investment portfolios and potentially prompting regulatory changes.