c. myblog

November 7, 2014

Will Recent Real Estate History Repeat Itself?

The director of the Federal Housing Finance Agency recently announced that Fannie Mae and Freddie Mac were planning to bring back some of the same types of lending criteria credited with contributing to the last crisis in housing (such as lower down payments, etc.). The intended objective is to further stimulate the housing market, which […]

October 30, 2014

What is the Objective?

Before any project within a credit union is launched, the project manager and project team should construct an appropriate objective statement for the finished project. The objective statement should clearly give anyone who reads it a precise idea of what the project will achieve once implemented. An objective statement should be SMART: Specific Measurable Attainable […]

October 23, 2014

30-Year Fixed-Rate Mortgages vs. 5/5 ARMs

Recently, we’ve seen more credit unions offering a 5/5 ARM product. While there are some differences institution-to-institution, usually the 5/5 ARM repricing characteristics have a 2% initial cap, a 2% annual cap and a lifetime maximum rate adjustment of 5% above the initial interest rate. The intent is to offer a product that is beneficial […]

October 17, 2014

Liquidity Risk: Loan-to-Share Ratios Are Moving Up

Throughout the sustained, low interest rate environment, many credit unions have become flush with non-maturity deposit funds, while also experiencing lackluster loan growth.  In other words, liquidity risk hasn’t necessarily been at top of mind. However, as the economic landscape shifts and murmurings of an increase in government interest rates grow, the issue of liquidity […]

October 9, 2014

How is Your Modeling Positioned to Capture NCUA’s “Chief Concern”?

In the most recent NCUA Economic Update, John Worth (Chief Economist, NCUA) outlined NCUA’s chief concern regarding the impact of a changing rate environment, given an interpretation of recent Federal Reserve comments and data analysis. See below for a key quote from the video: “If the increase in short rates is larger than the increase […]

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