Twiddling!
While we await a response from SECU Chief Legaler, Ms. Cathie Plaut, as to the fate of SECU Member Resolutions (see "Guilty Until Proven Innocent" post [link]), don't miss the interesting dialogue which has broken out on mortgage lending in the "Comment "section [see link] - 60+ comments and rising!
In fairness to Ms. Plaut, she indicated she would be out of the office last week, so a response wouldn't be forthcoming until later this week.
Since we have some time, will try to bring the discussion of SECU's next "new/new" lending misadventure to the main page. Loan Administration has gone all out this time! Building on its recent record of...
If you like the movie "Back to the Future" or any cinema featuring zombies, you'll like LA's "new/new" mortgage ideas... Get out the popcorn!
Just so laughable. 1930's thinking? You literally ran until retirement a 1980's thrift mortgage model. What's being recommended is the current, contemporary being employed by CU's and lenders that don't have 1 billion+ in bad mortgages on their books...
ReplyDelete2:24pm Well, I guess by "you", you mean me!
ReplyDeleteWould like to point out 3 things:
1) Now in the 10th year since I left SECU, how much longer do I get "credit" for the current performance of the organization?
2) If as you say, SECU now has "$1 billion in bad mortgages on its books" then it is definitely another "recent lending innovation" for which you should take credit!
3) Hopefully the "$1 billion in bad mortgages" is just another "imaginary" figure you made up to try and make your point. If not, then it might be wise to let your CEO and especially your Board know.
My definition of bad is over $1 billion dollars in 60 day + and troubled debt mortgages. 1.248 billion in fact, as of June 2025 call report.
DeleteThis portfolio mortgage business model which has shunned fixed rate production and the sale of mortgages, is the direct cause of this little 1.28 billion bad loan problem we have. It's your model that got built and perpetuated.. unfortunately, we couldn't fix it fast enough and we couldn't stop the fed from raising rates.
Mortgages stay on the books for 30 years, remember? We still have 20 years left then of with your high risk mortgages.
2:57 pm Glad you at least tried to clean up that "$1+ billion bad loan" statement... it's sorta irresponsible to be so loosey-goosey with such remarks about a financial institution.
DeleteStill see you're trying to duck accountability for the lack of performance, soaring delinquency and record setting loan losses. Those are definitely "new/new" - yours truly - lending innovations. Not sure how the CU survived ("we couldn't fix it fast enough ") without you for the first 84 years.
Don't know how best to thank you for what's been accomplished in such short order!
About your 30 year mortgage remark: "Mortgages stay on the books for 30 years, remember? We still have 20 years left then of with your high risk mortgages."
Most everyone in the lending business knows that 30 year mortgages don't generally last for 30 years.
In fact do you remember this quote directly from you: " the average life of a 30 year mortgage is 7 years so let’s not exaggerate ".
Perhaps you should at least try to remember what you say and perhaps take your own advice: "let’s not exaggerate ".
So then why did you shun the production of a 30 year fixed mortgage?
DeleteThen, since you’re so smart, tell us when the loans that are delinquent today were originated (hint, I know, and the answer is an inconvenient truth to your little new/new narrative).
Delete@6:23. Sounds like you know the answer. Do tell.
DeleteOr are you just speculating?
6:22pm Well since you say - "hint I know" - and the data would create - "an inconvenient truth" - for me... please feel free to embarrass me!
DeleteBut since an enhancement to your credibility would be helpful at this point, please release the entire report (you know the one I'm talking about) showing by # and $ when each loan in the portfolio was originated and of course whether or not is delinquent.
We'd all appreciate that transparency from you - it has not been the hallmark of "new/new" ("hint") !
6:33. No dice. I don't post non-public data on this blog.
Delete6:51pm As the French would say:"Quelle surprise!"
DeleteAs the Texans would say: "Big hat, no cattle!"
As North Carolinians would say: "You can wash a lot of hogs with that."
Why don’t you get one of your followers to do it? Many resisters who support this blog have shown they are more committed to following you than doing their jobs as instructed by the board and ELT. Or when did insubordination become acceptable?
DeleteDo you not assume we would hedge the rate risk of the loans we hold? It’s misleading to frame the question about the 30 year risk without also informing that the risk can be strongly mitigated
ReplyDelete7:02 pm Don't assume anything much anymore about the "new/new".
DeleteBut do look at the official NCUA Call Report data on derivatives and hedging - SECU reports they do neither.
Are you suggesting SECU is not reporting to the regulators accurately?
Hey let us know if we need to report your statement to the NCUA ...
Loan Admin sucks period.
ReplyDelete