Dislocation in the credit markets is reshaping the competitive landscape for many financial institutions. With precipitous drops in home prices, a collapse in liquidity and increased regulatory scrutiny, the heat from the mortgage market meltdown is being felt far and wide.
Executives are challenged by the collapse of secondary markets, decline in origination volumes, high delinquencies and reduced property values. Banks are seeking a profitable business model in this volatile environment. Clearly, the playbook is changing rapidly. The strains are forcing banks to find new strategies to mitigate losses and protect assets. To survive the current climate and align themselves for future success, lenders need to overhaul products, operations, systems and controls.