What are Oritani Financial's Business Segments?
Residential Loans. We originate one to four family residential mortgage loans,
substantially all of which are secured by properties located in our primary
market area. We generally retain for our portfolio substantially all of the
loans that we originate. Residential mortgage loan originations are generally
obtained from existing or past customers, through advertising, and through referrals
from local builders, real estate brokers, and attorneys and are underwritten
pursuant to Oritani Bank's policies and standards. The Company maintains a program
where a fee is paid to a broker for a loan referral that results in an origination
or a purchase of a recently closed loan.
Commercial Real Estate ("CRE") Loans. We originate residential and
non-residential commercial real estate mortgage loans. The non-residential CRE
mortgage portfolio consists of credit/grocery retail CRE and other CRE. The
typical CRE mortgage loan has a fixed rate of interest for the first three or
five years, after which the loan reprices to a market index plus a spread, with
a floor of the original rate. The fixed rate period is occasionally extended
to as much as ten years. These loans typically amortize over 30 years though
we will often require shorter amortization. We also offer such loans on a self-amortizing
basis with fixed rate terms up to 20 years. References to commercial real estate
loans below refer to residential and non-residential commercial real estate.
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