What are Clifton Bancorp's Business Segments?
One- to Four-Family Residential Loans. The origination of mortgage loans to
enable borrowers to purchase or refinance existing homes remains the largest
portion of our portfolio. We offer fixed-rate and adjustable-rate mortgage loans
with terms of up to 30 years. Borrower demand for adjustable-rate loans versus
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 and the initial period
interest rates and loan fees for adjustable-rate loans. The relative amount
of fixed-rate mortgage loans and adjustable-rate mortgage loans that we originate
at any time is largely determined by the demand for each in a competitive environment
and the effect each has on our interest rate risk.
Multi-Family and Commercial Real Estate Loans. To an increasingly greater degree,
we offer fixed and adjustable-rate mortgage loans secured by multi-family and
commercial real estate. Our multi-family real estate loans are generally secured
by a variety of small and mid-size apartment buildings and complexes that generally
range from five to 45 units. Our commercial real estate loans are generally
secured by commercial real estate, such as strip malls, small retail locations,
mixed-use properties and other non-residential buildings.
Residential Construction Loans. To a much lesser extent, we originate loans
to finance the construction of residential dwellings. We typically offer construction/permanent
loans for the construction of one- to four-family homes to be occupied by the
borrower. Construction loans generally have a maximum loan-to-value ratio of
70%. Loan proceeds are disbursed in increments as construction progresses and
as independent inspections warrant.
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