Jan. 25, 2016


  • While I agree that loans are better than investments, I don't think that buying loans is a better alternative than making loans to your members. Miramar's strategy of buying real estate loans may generate a better return but it takes funds that members may latter want to fund their own loans. Purchased loans almost always have a narrower margin than your own loans because you have to pay the originating credit union for the loan. Finally I am always skeptical of significant one year loan growth. Financial institutions should have even steady growth. When one year loan growth exceeds sixty percent I almost always find that something is wrong.
    henry wirz
  • Thanks, Henry, as always for offering your insight and opinions. We appreciate it.
    Marc Rapport