It’s Not What It Used To Be

  • December 15, 2008

The competitive landscape for community banks today looks very different than it did just a year or two ago. The fallout from the subprime mortgage collapse and ensuing credit crisis has claimed its share of nonbank credit providers, such as mortgage bankers and specialists, captive finance companies and monoline credit card companies. Many of these lenders arose because they could take their products to the secondary market, but the turmoil in securitization has dried up many of their funding sources, either putting them under severe constraints or out of business entirely.

Hiring Lenders in Today’s Environment

  • December 15, 2008

Hiring and retaining qualified commercial lenders remains one of the biggest challenges for many community banks. In the past, large commercial banks served as the “farm system” for training and developing new lenders, and community banks were often able to recruit well-trained lenders from them. But with fewer big banks now providing this kind of training, there are fewer qualified lenders - who possess both sales/relationship and technical credit and underwriting skills - for community banks to choose from.