What's the truth?
"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..."
😎 Do want to take one more moment to do a "Whoa, horse!" on the many comments that have been made along this line. Hopefully, they are just low-rent trolls or low-grade economy model AI responses. You know how unreliable anonymice can be!
✅ Pretty sure such comments are simply not true. Much room to criticize the "new/new" for poor lending policies, weak underwriting, and suspect collection practices, but none of those are caused by the ARM product.
As we all know, SECU has always been a prominent mortgage lender in North Carolina. Typically around 70% of all loans are mortgages at SECU; a large majority of those mortgages are ARMs!
Here's a ten year history of actual loan losses at SECU:
Year Mortgage Loan Charge-offs Total SECU Charge-offs
2017 $9.8 million $84 million
2018 $6.9 million $100 million
2019 $8 million $102 million
2020 $5.3 million $73 million
2021 $390,000 (!)(!) $50 million
2022 $0 (!) (!) (!) $96 million
2023 $700,000 (!) (!) $197 million
2024 $8 million (!) $234 million
2025 $2 million (thru 6/30) (!) $138 million (6/30)
✅ While representing @70% of the total loan portfolio, hope it's clear that even in the worst year (2017), SECU member mortgage loan charge-offs have always been less than 1/10th of one percent of all mortgage loans. Folks just don't default very often on their homes, if prudently underwritten!
Members have always honored their mortgage commitments to SECU - even in pandemics, regardless of up/down interest rates, recessions, job loss, divorce, death. SECU has never put members into mortgages that weren't in their best interest!
✅ Loan losses are soaring at SECU under the "new/new" - ARMs are not the problem - never have been!
The "Unbelieveables"...
