Quote:
Originally Posted by John Mercier
BNH is looking at the cost of originating loans.
These aren't loans that they put their own capital or depositors' money behind (being a mutual bank, the depositors are the owners).
They are loans they write for others - like FHA - but have to service (take the payments and transfer them to the FHA/etc). When the costs for the services are greater than the payment for the services; it is a drain on finances.
The best current investments for them are more likely treasuries... and wealth management.
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As for wealth management, they have an extremely low track record. My uncle deceased and they paid the estate, 725,000. Within months they sold the property for 1.1 million! Plus, the way they handled his liquid assets. 4.25% while I am getting 7% from a credit union!
Then there is my mother-in-law. Same scenario, no wonder they love wealth management!