What are 's Business Segments?
Commercial and Multi-Family Real Estate Loans. We occasionally offer fixed-rate,
balloon and adjustable-rate mortgage loans secured by commercial and multi-family
real estate. Our commercial and multi-family real estate loans are generally
secured by apartment, retail, restaurant and office/warehouse buildings.
While the terms of our commercial and multi-family real estate loans are set
on a case by case basis, generally these loans are balloon loans with terms
of three, five, 10 or 15 years. Loans are secured by first mortgages, and amounts
generally do not exceed 85% of the property’s appraised value.
Single-Family Owner and Non-owner Occupied Residential Loans. The largest segment
of our loan portfolio is single-family residential loans, which are collateralized
by owner occupied and non-owner occupied single-family properties. We offer
three types of residential mortgage loans: fixed-rate loans, balloon loans and
adjustable-rate loans. We offer fixed-rate mortgage loans with terms of 10,
15, 20, 25 or 30 years and balloon mortgage loans with terms of three, five,
10 or 15 years. We offer adjustable-rate mortgage loans with interest rates
and payments that adjust annually or every three years. Interest rates and payments
on our adjustable-rate loans generally are adjusted to a rate equal to a percentage
above the one year U.S. Treasury index. The maximum amount by which the interest
rate may be increased or decreased is generally 2.0% per adjustment period and
the lifetime interest rate cap is generally 6.0% over the initial interest rate
of the loan. Our current practice is to retain in our loan portfolio all mortgage
loans that we originate.
Borrower demand for adjustable-rate or balloon loans compared to fixed-rate
loans is a function of the level of interest rates, the expectations of changes
in the level of interest rates, and the difference between the interest rates
and loan fees offered for fixed-rate mortgage loans as compared to the interest
rates and loan fees for adjustable-rate or balloon loans. The relative amount
of fixed-rate, balloon and adjustable-rate mortgage loans that can be originated
at any time is largely determined by the demand for each in a competitive environment.
The loan fees, interest rates and other provisions of mortgage loans are determined
by us on the basis of our own pricing criteria and competitive market conditions.
Consumer Loans. Our consumer loans consist primarily of new and used automobile
loans and home equity loans. We occasionally make loans secured by deposit accounts
and other motorized vehicles.
Our automobile loans have fixed interest rates and generally have terms up to
five years for new automobiles and four years for used automobiles. We will
generally offer automobile loans with a maximum loan-to-value ratio of 90% of
the purchase price of the vehicle.
We generally offer home equity loans with a maximum combined loan-to-value ratio
of 89% or less. Home equity loans have fixed interest rates and terms that typically
range from one to 15 years.
The procedures for underwriting consumer loans include an assessment of the
applicant’s payment history on other debts and ability to meet existing
obligations and payments on the proposed loan. Although the applicant’s
creditworthiness is a primary consideration, the underwriting process also includes
a comparison of the value of the collateral, if any, to the proposed loan amount.
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