Magazine article American Banker

Roosevelt's Strategic Shift Pays off; Cross-Selling Effort Makes Progress

Magazine article American Banker

Roosevelt's Strategic Shift Pays off; Cross-Selling Effort Makes Progress

Article excerpt

A Missouri thrift's nimble strategy shift has helped it reap the benefits of a recent industry cycle.

"In 1995, we had the goal to be a purchaser of servicing," said Stanley J. Bradshaw, president and chief executive of Roosevelt Financial Group Inc., Chesterfield, Mo. But when prices became irrational last year, he said, Roosevelt shifted its strategy to take advantage of high prices.

Anat Bird, chief operating officer at Roosevelt, said the thrift sold $500 million in servicing last year.

"Now the market has turned and has become more rational, so we became a buyer," Ms. Bird said, adding that Roosevelt would continue to buy servicing rights.

Roosevelt bought $550 million of mostly Ginnie Mae servicing rights when their prices declined recently, executives said.

The purchases from various sellers bring the company's servicing portfolio to about $5.5 billion.

Ms. Bird said the thrift has a goal to sell an average of two additional products to the homeowners whose mortgages Roosevelt services, and a strategy to reach that goal.

"When you go to McDonald's, you can get just a hamburger, or you can get a Happy Meal," Ms. Bird said, referring to the fast-food restaurant's package of a sandwich, french fries, soda, and a children's toy. "When customers come to us, they can get a stand-alone, adjustable-rate loan or a fixed-rate loan. But they can also get a checking account with an automatic debit service, account overdraft protection and an application for an annuity."

Customers who opt for all those services get a discount on their loan interest rate, Ms. …

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