Jan. 8, 2007


Comments

 
 
 
  • Loan portfolios have benefited from rising real estate values which have allowed additional collateral to lend against, low loan losses in a recovering economy and low prepayment rates due to rising rates. All three of these factors may move in the opposite direction in 2007-08 resulting in a further compression of ROA.
    John Nilles from RECU
     
     
     
  • With the slumping RE market, how will we respond in Q4 since other loan categories have been slow as well...maybe an increased focus on MBLs? CUs may have to start looking for other ways to grow their asset base while we wait economy to pick up momentum again.
    Anonymous
     
     
     
  • Five years ago when the auto market slumped CUs were looking to the Real Estate market for loan growth. The same thing is happening now only it doesn't appear that RE is here to save us. The new savior appears to be MBL. Why not move back to DIRECT auto lending and a focused effort to remain in the Real Estate market?
    R Burden from NDFCU