| T.R | Title | User | Personal
Name | Date | Lines |
|---|
| 565.1 | | GUFFAW::GRANSEWICZ | | Tue Jun 09 1992 12:30 | 5 |
|
Working on it.
Need members to borrow money from DCU!
|
| 565.2 | make it attractive | CIMNET::KYZIVAT | Paul Kyzivat | Tue Jun 09 1992 14:51 | 5 |
| How about making a *really* good deal for us. I would like to see a really
attractive morgage refinance deal. DCU never seens to be low in the lists
published by the Globe.
Paul
|
| 565.3 | | GUFFAW::GRANSEWICZ | | Tue Jun 09 1992 14:54 | 6 |
|
Hmmmm.... I thought DCU did have good mortgage rates. They certainly
have been writing a lot of them. Is there something else that makes
the others more attractive? What are the others offering that DCU is
not?
|
| 565.4 | | WLDBIL::KILGORE | ...57 channels, and nothin' on... | Tue Jun 09 1992 15:34 | 4 |
|
Does it count as "borrowing more money" if I refinance my mortgage with
DCU and they sell it to someone else?
|
| 565.5 | | CREATV::QUODLING | Ken, Me, and a cast of extras... | Tue Jun 09 1992 18:35 | 4 |
| Gee, can I have $nMillion to float a new computer company to get this crowd
out of the doldrums...
q
|
| 565.6 | | GUFFAW::GRANSEWICZ | | Wed Jun 10 1992 10:33 | 9 |
|
RE: .4
No, it doesn't. DCU is already holding enough fixed rate mortgages.
I believe they do hold on to the variable rate mortgages they write.
They can't tie up too much in long term debt. They do make money on the
transaction though. One time profit vs. continuous income.
|
| 565.7 | somebody must hold them | CIMNET::KYZIVAT | Paul Kyzivat | Wed Jun 10 1992 16:57 | 5 |
| Maybe its not a business that DCU wants to be in, but it is obviously
profitable for *someone* to hold fixed rate morgages. And one who does can
presumably offer a better rate than one who takes a cut and resells them.
Paul
|
| 565.8 | | PATE::MACNEAL | ruck `n' roll | Wed Jun 10 1992 17:22 | 10 |
| �Maybe its not a business that DCU wants to be in, but it is obviously
�profitable for *someone* to hold fixed rate morgages. And one who does can
�presumably offer a better rate than one who takes a cut and resells them.
Not neccessarily. When I took out a first mortgage with DCU last
summer their rates were comparable or better than most banks in the
area. They told me right up front they were going to sell my loan to
Shawmut. The rate DCU gave me was lower than the one Shawmut would
have given me had I gone to them directly. This was because DCU was
offering mortgages to Shawmut in volume.
|
| 565.9 | You need to consider interest rate risk | SMAUG::GARROD | Floating on a wooden DECk chair | Wed Jun 10 1992 19:40 | 21 |
| As said by others it would be exceptionally risky to hold too many
long term fixed rate mortages. If interest rates rise DCU (ie us) would
get screwed. There has to be a well thought out asset allocation
policy. Ie spreading your interest rate risk between short and long
term instruments.
In due course I wouldn't be surprised to see the DCU management inform
the membership on what the asset allocation policy is. For the moment
I'm happy to believe that the right thing is being done.
I don't think you'd be at all happy to see DCU's balance sheet shot to
hell in 5 years time if prevailing interest rates were 12% and it was
holding a whole bunch of 8% mortgages. They could then quite rightly be
accused of speculation that interest rates would fall not rise.
What I'm hoping DCU will do quickly is start to hold a whole bunch more
short term variable rate mortages. I also hope that they can do this
profitably and still be one of the lowest rates around. That'll attract
a lot of business.
Dave
|
| 565.10 | Waiting for a report on this one so we can judge | SMAUG::GARROD | From VMS -> NT; Unix a mere page from history | Tue Jan 19 1993 23:34 | 4 |
| It's unclear to me how much better the financial status is. Maybe the
treasurer would like to post a report here for us. Hello Tanya?
Dave
|
| 565.11 | | PSDVAX::DAWKINS | | Wed Jan 20 1993 16:44 | 8 |
| Dave,
I plan to post financial results once we have year-end data
which should be shortly.
Regards,
Tanya
|
| 565.12 | | GUFFAW::GRANSEWICZ | | Wed Jan 20 1993 17:23 | 9 |
|
RE: .10
Dave, the capital ratio has improved to 4.82% as of year end. Net
income should be above last years mark due in large part to massive
mortgage loan volume (which DCU sold). Stay tuned for the real figures
from Tanya though. Just thought you (and others) should know things
are fine in this area.
|