A wee bit defensive?
✅ We are waiting for a response from SECU Chief Legaler, Ms. Cathie Plaut, as to the fate of SECU Member Resolutions (see "Guilty Until Proven Innocent" post [link]) ... expecting a further "weaponization" of the bylaws to suppress SECU member participation.
Using the pause to take a look at SECU mortgage lending in the past and to review the proposed upcoming changes in SECU mortgage lending. The changes include race-based lending (RBL) on mortgages to further, unfairly tap the paychecks of SECU members - but on a far more massive scale! And, the sale of SECU member mortgages to outside investors - the Republic of China was a huge investor in U.S.mortgages in the recent past!
Lots of snarling about mortgages in the "Comments" section [fasten your seat belt! -link]
In the past, SECU has sought to provide the truth, the whole truth, and nothing but the truth about financial products and services. That is not a strategy that all financial providers pursue - nor are they required to do so.
As you'll note, one of the major fist fights in the "Comments" is whether or not fixed rate mortgages are preferable to adjustable rate mortgages. As a consumer, upon first blush, you would probably choose a fixed rate mortgage. It might surprise you that the SECU ARM is generally a better financing decision for you than a fixed rate mortgage. We'll investigate that idea and you can decide.
Making and selling your fixed-rate home mortgage is not in your individual best interests and is a losing business strategy for SECU as a going concern. Pretty bold statement, but follow along and decide for yourself.
But first we'll have to explore the current state of home mortgage lending in the U.S. a little.
😎 First question for you: "Why is the U.S.A. the only developed country with a 30-year fixed rate consumer mortgage"?
Same reason the USA the only place you can get a deep fried Oreo and an assault rifle while guzzling a slurpee.
ReplyDeleteTwo primary reasons the US is unique and financial I situations offer 30 year fixed is because there is a government-backed secondary market for lenders to offload the interest rate risk, and related, that home ownership has been a long-term public policy focus, and different countries and cultures don’t Have the same focus.
ReplyDeleteThis is a great question. To offer this, the US government has to prop up the product. Agree that this is a bad thing for the economy, but how do we effect change knowing that many Americans are completely convinced that they need a 30 year fixed? Should we not offer the product because we don’t think members should want it whether or not they actually do?
ReplyDeleteDid we sell loans while you were CEO?
ReplyDelete