And a far far worse than 'expected' result coming up for FXL - must be, otherwise share price would be 2x high as the $1.30 it hit briefly today. We'll find out about both in around a months time I suppose.
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Below is a link to a web page about reverse mortgages. It is from an American perspective and dating back to just before the global financial crises. It is well written and recommended reading for those who want to know what a reverse mortgage is.
https://www.calculatedriskblog.com/2...rditorial.html
Boop boop de do
Marilyn
Or youi could just read about it on teh HGH website "
What is a reverse mortgage?
A reverse mortgage is like a normal home loan that has been designed for the needs of seniors. It allows people aged 60 and over to release home equity to live a more comfortable retirement.
Importantly, you continue to own and live in your home for as long as you wish, continuing to enjoy the benefits of your community, social network, and family memories.
How does it work?
Unlike a standard mortgage, you don’t need to make regular repayments. Instead, interest is calculated on the balance outstanding, and added monthly to your loan. Voluntary repayments can be made at any time, which reduces the balance and interest charged.
The total loan amount, including accumulated interest, is repayable when you move permanently from your home; this could occur when you sell your property, move into long-term care or pass away.
To be eligible, you need to be aged 60 or over, own your own home outright, or have a standard mortgage that can be paid off by the reverse mortgage. The amount you can access depends on your age, and the value of your home.
What about the costs?
In addition to the interest on your loan, there will be fees and charges for setting up the loan, which are dependent on what options you select. These can be paid out of your loan at settlement. You can find out more about our fees and mortgage rates on the resources page.
It is a requirement that you seek and receive independent legal advice on the loan agreement issued by Heartland from a solicitor of your choice. The cost for this could also be paid out of your loan."
Dairy prices rising and Heartland share price rising
Farmers and Heartland shareholders happy
The recent shareprice low of 132 will never be seen again
Good news coming soon
Yes,
However you must remember it will change,because time is the friend of a good share and the enemy of a poor share.
Had you read my previous posts on this thread, you would be well aware I have pointed out HGH do not face the same issues as the Australian Banks.
Being tard with the same brush as the Australian Banks offers a window of opportunity for an astute investor who knows the difference.
In viewers opinion what is the buying range for Heartland? Is there a DCF?
Ive just seen this post from KW elsewhere. That last sentence is a bit spooky!!!!!
From today's AFR
"Bankwest and CBA have also started the new year by withdrawing reverse mortgages, the last of the major lenders to pull out of the $3.1 billion sector amid rising costs and tougher regulation.
It will withdraw the product for new borrowers but continue for existing.
Westpac Group, the nation's second largest lender, and Macquarie Bank, withdrew from the market about two years ago.
A reverse mortgage borrower can take the funds from the equity in their house as a lump sum, regular income stream, cash reserve, or a combination of all three.
CBA and Bankwest's decision to quit new lending means reverse mortgages are now only being offered by smaller lenders, such as Heartlands Seniors' Finance, IMB Bank and P&N Bank.
The federal government is expected to enter the market with a low-cost reverse mortgage scheme that will provide an alternative to the private sector." !!!!!!!!!!!!!!!!
Must be referring to the expansion of the pension loan scheme https://www.smh.com.au/money/borrowi...09-p4ze6z.html
Thanks w69; for some reason i missed percys response saying much the same.The plus is less competition!
Less competition generally leads to more business at higher margins and they already have strong growth. Hmmmmm
No question that this part of the business is looking very rosy and exciting. The growth requires a lot of cash. That borrowing and meeting the potential new RBNZ liquidity requirements will require very careful balance sheet management. Personally I think suspension of dividend should be one of the many options considered but realise this will not happen. But maybe they could raise the DRP discount a little more to entice us SH further to sign up for it !
Heartland already has a banking facility with cba bank for its reverse mortgage book so why not a little more and take cba reverse mortgages off their hands....over the years as cba has less repverse mortgages left the cost to administer these will In crease so why not on sell to heartland now
My rating BBB+, Beagle Busy Buying :)
Dairy prices rising nicely lately so HGH's SP is highly likely to follow. Sounds ridiculous but the historical correlation between the two provides startling evidence over a very considerable period of time supporting this rather bizarre proposition.
Some of the American banks had a huge night overnight on Wall St, who knows, maybe HGH spending time in the doldrums,is nearly at an end.