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LenderHub

SWBC's LenderHub blog is a one-stop resource for lenders.

 

Wither The Coin of the Realm

The mighty U.S. Dollar, the coin of the realm (where the “realm” is the entire world), appears shaky for the first time in a long time. Replacements like the Euro, Yen, or crypto are periodically offered up (forget the Chinese Yuan, as it is not even a freely-floating, deliverable currency). At the end of the day, just about anything vital and strategic that a nation needs trades in U.S. Dollars. The USD, as measured by The Federal Reserve Trade Weighted Nominal Broad Dollar Index, has swooned 7.2% since March 23rd of this year. During that same time, gold has hit new all-time highs and has increased 25%.

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Market Commentary: Week of August 24, 2020

What Happened:

Another week and another high for stocks. The S&P 500 ground higher to hit an all-time high by week’s end, while the NASDAQ used more of an aerial attack to set its own all-time high on Friday. Corporate debt continues to tighten. Leveraged loans are still a problem, but instead of being radioactive—as they were in March—now their problem is that there are not enough of them for CLO demand.

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The Impact of COVID-19 on the Auto Lending Industry

One of the greatest things about my job here at SWBC, and as a former lending executive, is that I get to speak with financial institution leaders, more specifically, credit union lending executives, on a regular basis. In recent weeks, unfortunately, a lot of the conversations I've been having have not been as upbeat as we would typically like. And, that's primarily because of the effects of the COVID-19 outbreak on many parts of our organizations, but more specifically, significantly declining levels of auto loan originations and loan growth in the credit union space.

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Market Commentary: Week of August 17, 2020

What Happened:

Last week was what a typical slow August trading week once looked like, at least for stocks. COVID-19 continued to dominate the news as new cases slowed a bit in the Southwest and California, but picked up speed in the Midwest. The biggest battle now comes from the reopening of schools across the country. Right now, the outlook isn’t good for face-to-face reopening, which is a huge economic problem, as well as a social one.

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Relationship Building During the Pandemic

We are living in some very uncertain times; things are literally changing from minute to minute in our world due to the coronavirus pandemic. It can often feel as though you are not sure which way is up and which way is down. As a professional relationship builder, I have experienced this feeling nearly every single day in recent months.

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Market Commentary: Week of August 10, 2020

What Happened:

Last week was all “Can’t stop, won’t stop” for risk assets. Equities pushed even higher with the S&P 500 making gains every day, and the NASDAQ hitting another all-time high. After hitting all-time lows in yield, Treasuries backed up slightly. It is hard to reconcile all-time highs in stocks and all-time lows in Treasury yields, but there it is. Investment-grade and high-yield bonds tightened significantly, as the market gobbled up new issue as if they will not make them anymore. The backdrop this week was the breakdown of stimulus talks between The White House and the Democratic House.

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Market Commentary: Week of August 3, 2020

What Happened

It was another schizophrenic week for the markets. With COVID-19 continuing its rampage across the nation, the Fed pulling no punches on how perilous the economic road ahead is, a lack of a second stimulus plan from the White House and Congress, another week of increasing initial jobless claims, and the visual shock of a 33% contraction of 2nd Quarter U.S. GDP, and safe-haven assets like Treasury notes and gold hitting all-time low yields and high prices, respectively.

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Alternative Appraisal Options During Coronavirus Disruptions

COVID-19 has created unique challenges for the home appraisal process—nationwide shelter-in-place orders and social distancing guidelines have made it difficult for appraisers to do on-site inspections, which means that turnaround times and appraisal fees have increased due to COVID-related backlog.

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"Let the Genius Figure it Out"

Yesterday I went shopping, buddy, down to the mall
Looking for something pretty I could hang on my wall.
I knocked over a lamp, before it hit the floor I caught it,
A salesman turned around, said, "Boy, you break that thing you bought it."
–Bruce Springsteen

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Market Commentary: Week of July 27, 2020

What Happened?

It was the best of times; it was the worst of times. The NASDAQ hit another all-time high last Monday and then proceeded to trade down nearly 4% by week’s end. Tesla—the world’s most valuable car company—did the same thing, hitting a new high on Monday and then down 14% by the end of the week. As the week wore on, the bad COVID-19 news (which started the week bad and then got worse), the realization that a lot of lifelines that were thrown to a battered populace are expiring very soon and the Republican Senate and the Republican White House can’t agree on a plan, let alone deal with the Democratic House plan.

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