“Last week I told a joke over a Zoom meeting. It wasn’t even remotely funny.” Working remotely from home, or at least adopting a hybrid model, is something I hear about from lenders and vendors everywhere in my travels. There probably aren’t too many bankers at First Republic working from their sofas these days. Recall that First Republic, which announces earnings next Monday and continues to be mentioned by analysts despite things quieting down in the overall banking sector, received $30 billion in deposits from a group of big banks, but there was no equity. If that $30 billion is converted to equity, for example, then First Republic’s troubles are over but as it is the stock is trading at less than 20 percent of tangible book value. Those “in the know” will suggest that either a sale or a seizure is likely, probably at a discount or some set of provisions. Originating loans with 3.5% weighted average coupon in this market when you have to pay 4-4.5-5% for deposits doesn’t work very well. As one industry vet suggested, “It is a great franchise with real value. But they will have to change their lending strategy.” (Today’s podcast can be found here and is sponsored by Candor. Candor’s patented automated underwriting decision engine, CogniTech™, is a state-of-the-art, 100 percent machine platform that can handle infinite loan scenarios.) Lender and Broker Services, Products, and Software The library is officially open. MGIC’s new first-time homebuyer resource library is full of free educational downloads to share with borrowers, including the popular Get Ready series! Easily explain credit, how to prevent identity theft, budgeting, down payments and more. All available in English and Spanish. Designed to help you stand out as a trusted advisor. Best of all: absolutely no late fees! Browse the first-time homebuyer resource library now.