MBANow: Thomas Healy, CMB, on Changes to MBA School of Mortgage Banking III

The Mortgage Bankers Association released a new MBANow video featuring Thomas Healy, CMB, who talks about recent upgrades to the popular MBA Education School of Mortgage Banking Course III.  

The video can be viewed at         

MBANowHealy, Chairman & CEO of Level1Analytics and lead instructor for SOMB III, the keystone course in the School of Mortgage Banking series, which prepares mortgage bankers for a successful career in the real estate finance industry. He noted upgrades to the SOMB III curriculum are designed to bring simulation models and other lessons up to date to reflect current scenarios.  

“The simulation model in the class was built in 2009, and as you recall, 2009 was the depths of the recession,” Healy said. “A lot has changed between 2009 and 2018; mortgage behavior has changed; the regulatory environment has changed; the economic environment has changed.”  

The upgrade, Healy said, has three components. “One, we wanted to bring it up to date so that it does reflect current scenarios,” he said. “We also added a lot of dynamics to the model…we made the channel of distribution a driver of repurchases–before, we didn’t do that.”  

Second, Healy said, they made the sensitivity to mortgagors a little bit higher, “so that if you increase interest rates, production goes down,” he said. “We also added more metrics to the output-our students were saying that they didn’t have enough data in order to analyze results [in the model scenario], so we added much more to the output, so they could see what was the impact of their hedge strategy.”  

Healy said SOMB III is necessary because the industry is “so complex. There’s so many silos within a mortgage banking enterprise, such as originations, secondary, servicing, and what’s good for one isn’t necessarily good for the other. So, by integrating-by going through eight quarters where students are actually running a company where they see the dynamics of what their decisions are doing to another area in the bank.”  

Other videos in the MBANow series can be viewed at the MBANow website: