sharetrader
  1. #11101
    Senior Member
    Join Date
    Jan 2014
    Posts
    802

    Default

    Quote Originally Posted by minimoke View Post
    OK. Lets see where this goes. Is it HBL's "job" to use shareholder funds to "fix" the
    psychological effects on Maori descendants of colonialism (assuming this is a problem - which of course it isn't)
    I don't agree with the "of course", but I don't think it is Heartland's job to "fix" the problem.

    I do think that it is commercially sensible for any large organisation to embrace diversity and to be "institutionally aware" of social issues and able to spot and act on opportunities and threats arising from them.

  2. #11102
    Guru
    Join Date
    Aug 2012
    Posts
    4,663

    Default

    Quote Originally Posted by Bobdn View Post
    Cool, our posts crossed in the mail.
    NO Problem Bob! Enjoy your cuppa! I’ll have a coffee.

  3. #11103
    always learning ... BlackPeter's Avatar
    Join Date
    Aug 2007
    Posts
    9,497

    Default

    Quote Originally Posted by davflaws View Post
    I don't agree with the "of course", but I don't think it is Heartland's job to "fix" the problem.

    I do think that it is commercially sensible for any large organisation to embrace diversity and to be "institutionally aware" of social issues and able to spot and act on opportunities and threats arising from them.
    I think that most people would agree that a large organisation should embrace diversity, particularly if this diversity reflects their customer base. I certainly do.

    The question however is, whether they should focus with their "diversity" only on one minority (even if this minority has politically a special status) and that way risking to alienate other customers. There are likely more of Heartlands customers fluent in Mandarin or Dutch or German than customers who are fluent in Maori.

    Just wondering when they are reflecting this in their company culture and their annual reports?
    ----
    "Prediction is very difficult, especially about the future" (Niels Bohr)

  4. #11104
    Legend minimoke's Avatar
    Join Date
    Mar 2005
    Location
    Christchurch, New Zealand.
    Posts
    6,502

    Default

    Quote Originally Posted by davflaws View Post

    I do think that it is commercially sensible for any large organisation to embrace diversity and to be "institutionally aware" of social issues and able to spot and act on opportunities and threats arising from them.
    I think we have been through this before - the only "diversity" imperative is that it improves the customer experience and adds value to shareholders. Virtuous activity, such as targeting a specific gender or race for attention, or corporate donations, or "greening" is fine providing it has been put to shareholders and has their backing. Virtue has a direct cost and an opportunity cost - if shareholders are fine with this then all well and good.

  5. #11105
    Banned
    Join Date
    Nov 2013
    Posts
    8,516

    Default

    Quote Originally Posted by minimoke View Post
    I think we have been through this before - the only "diversity" imperative is that it improves the customer experience and adds value to shareholders. Virtuous activity, such as targeting a specific gender or race for attention, or corporate donations, or "greening" is fine providing it has been put to shareholders and has their backing. Virtue has a direct cost and an opportunity cost - if shareholders are fine with this then all well and good.
    Well said, it's easy for over the top PC nonsense to cloud ones vision these days.

  6. #11106
    Dilettante
    Join Date
    Mar 2010
    Location
    Down & out
    Posts
    5,407

    Default

    A good article on Heartland behind the paywall on NBR today, for those interested. Clear from that article that they will be seeking more funding in 2019

  7. #11107
    Guru
    Join Date
    Aug 2012
    Posts
    4,663

    Default

    Quote Originally Posted by couta1 View Post
    Well said, it's easy for over the top PC nonsense to cloud ones vision these days.
    Perhaps what is "PC nonsense" for the person in Bulls may not be so for the dude in their hybrid in Ponsonby?

  8. #11108
    Senior Member Marilyn Munroe's Avatar
    Join Date
    May 2010
    Location
    Hollywood
    Posts
    920

    Default

    An interesting article about reverse mortgages and some of the risks to a lenders balance sheet appears on the interest.co.nz site which is based on an item in the Financial Times.

    It focuses on the dangers of a no negative equity guarantee (NNEG). This applies where the outstanding balance of the reverse mortgage is greater than the proceeds of a sale. This can arise if the mortgagee has greeter longevity than provided for at the beginning or the price of houses goes down. The articles pose the question; are lenders provisioning enough capital against the risks in this type of lending?

    If their is no NNEG and the proceeds of sale are less than the outstanding balance the mortgagee or the executor of the estate will have to have to put cash on the table to clear the mortgage debt. You can imagine the reaction of these people when asked to stump up cash.

    If there is a NNEG and the proceeds of sale are less than the outstanding balance the lender eats the shortfall.

    A cure for cancer and alzheimers plus a ban on foreign house buyers are not beyond the bounds of reason. It would be a shame if Jeff has to go around machine gunning his reverse mortgagees to maintain solvency.

    https://www.interest.co.nz/opinion/9...ebt-piled-your

    https://www.ft.com/content/ddce25d0-...a-eeb7a9ce36e4

    Boop boop de do
    Marilyn
    Last edited by Marilyn Munroe; 17-08-2018 at 11:43 PM. Reason: added and removed words
    Diamonds are a girls best friend.

  9. #11109
    Dilettante
    Join Date
    Mar 2010
    Location
    Down & out
    Posts
    5,407

    Default

    Interesting MM and certainly something that needs to be watched very carefully with this new type of lending. These loans are very capital intensive and HBL will need to get lots of funding to keep growing Senior Finance in Australia as fast as it is now as well as the reverse mortgages here in NZ, albeit at a much slower uptake rate.
    HBL has a '"no negative equity guarantee" on these loans if I remember correctly so will never charge more than the proceeds of the house when sold.

    Most of these loans are being taken for home improvements, debt consolidation and extra income. So far most of the reverse mortgages have been fairly small and the LVRs are very low. I've also read somewhere that many of the loans have had much faster payback rate than originally expected.

    So I think these loans are very low risk at the moment but certainly something to watch out for and HBL should probably be providing us with more information in this regard in their reports.

  10. #11110
    percy
    Join Date
    Oct 2009
    Location
    christchurch
    Posts
    17,222

    Default

    HBL have $453 mil lent to 15,000 NZ customers.Therefore the average size loan is $30,200.
    I think the average house price in NZ is between $450,000 to $500,000.
    House prices would have to fall over 80% before HBL hit troubles.I would think all the major banks would hit the wall with a 50% fall,therefore Heartland Bank would be the last bank standing.!!!.
    HBL will not be lending a very fit 65 year old at great deal.
    However, a 79 year old with a history of heart problems, may be able to borrow more than they thought.?

    ps.Today's article, Managing a reverse mortgage, at www.stuff.co.nz,business is worth reading.
    Perhaps a kind poster would post the link.?
    Last edited by percy; 18-08-2018 at 08:22 AM.

Tags for this Thread

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •