Yes, to all the above?
✅ Commenter: Anonymous September 20, 2025 at 1:05 PM
"So only ARM mortgages should be offered to SECU members? That is what you are stating?"
No, the concern is over the 30-year fixed rate mortgage [link], which most consumers think is better [link]; and the proposed future selling of our member mortgages into a huge, financially risky, taxpayer-guaranteed support system which failed in 2008 and has been in conservatorship for the last 17 years [link].
In a world where market interest rates can fluctuate widely (post 1980 federal deregulation), no reasonable lender or investor would normally make or purchase many 30-year fixed rate mortgages - a relatively low rate investment - unless Uncle Sam guarantees against losses when "things go bad" - and yes, they eventually will go bad [link].
SECU has been making fixed rate mortgages every year for over 75 years. In fact when deregulation hit in 1980, SECU was almost "loaned out" and had @ 50% of its assets (loans) in 30-year fixed rate mortgages at rates of 7% and 8%.
By 1981 after deregulation hit, SECU was paying 16% on a six-month CD (and some members were complaining that 16% was too low!). Earning 7% to 8% on those 30-year fixed rate mortgages while paying 16% and up on CDs... doesn't take a financial genius to figure out how that will turn out. The Savings and Loan industry (which made most home mortgages at the time) collapsed and disappeared. As a financial institution, you can't pay 16% and earn 8% for long!
✅ So let's look at SECU mortgage lending over the last few years:
Dec. 2022 New fixed >15yrs $2.25 billion
New fixed <15yrs $300 million
✔ ARMs $4.2 billion Total mortgages: $22.2B
Dec. 2023 New fixed >15yrs $560 million
New fixed <15yrs $195 million
✔ ARMs $3 billion Total mortgages: $24.3B
Dec. 2024 New fixed >15yrs $875 million
New fixed <15yrs $225 million
✔ ARMs $2.2 billion Total mortgages: $25.3B
June. 2025 New fixed >15yrs $373 million
New fixed <15yrs $129 million
✔ ARMs $1.6 billion Total mortgages: $$26. B*
* At June, 2025, SECU held 37,000 member fixed rate, >15 years mortgages totaling $7 billion, 25,000 fixed rate, <15 years mortgages totaling $2 billion, and 107,000 member ARMs totaling $17 billion
✅ If ARMs are so bad for SECU members, then why does the ELT and SECU Board keep "sticking it to the membership"?
😎 Must be that some of those Luddite, "new/new" commenters [link] are continuing to fumble around with their 1930/2008 ideology - it's been a costly misadventure for the SECU membership.
