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  1. #11851
    Speedy Az winner69's Avatar
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    Quote Originally Posted by Joshuatree View Post
    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." !!!!!!!!!!!!!!!!

    No worries here JT

    Only limited top ups to pensions and to be taken in cash .....no lump sums that are the attraction of a proper HER scheme.
    “ At the top of every bubble, everyone is convinced it's not yet a bubble.”

  2. #11852
    IMO
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    Thanks w69; for some reason i missed percys response saying much the same.The plus is less competition!

  3. #11853
    ShareTrader Legend Beagle's Avatar
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    Less competition generally leads to more business at higher margins and they already have strong growth. Hmmmmm
    Ecclesiastes 11:2: “Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.
    Ben Graham - In the short run the market is a voting machine but in the long run the market is a weighing machine

  4. #11854
    Legend minimoke's Avatar
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    Quote Originally Posted by Beagle View Post
    Less competition generally leads to more business at higher margins and they already have strong growth. Hmmmmm
    Add in "increased demand" and it ought to be a rosy looking picture.

  5. #11855
    Dilettante
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    Quote Originally Posted by minimoke View Post
    Add in "increased demand" and it ought to be a rosy looking picture.
    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 !
    Last edited by iceman; 17-01-2019 at 10:16 AM.

  6. #11856
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    Quote Originally Posted by Beagle View Post
    Less competition generally leads to more business at higher margins and they already have strong growth. Hmmmmm
    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

  7. #11857
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    Quote Originally Posted by ziggy415 View Post
    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
    Smart option Ziggy

  8. #11858
    ShareTrader Legend Beagle's Avatar
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    Quote Originally Posted by ziggy415 View Post
    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.
    Last edited by Beagle; 17-01-2019 at 11:21 AM.
    Ecclesiastes 11:2: “Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.
    Ben Graham - In the short run the market is a voting machine but in the long run the market is a weighing machine

  9. #11859
    Speedy Az winner69's Avatar
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    Quote Originally Posted by iceman View Post
    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 !
    The last DRP didn’t even make up for the $15m reduction in equity from the increased doubtful debt provision needed to comply with new accounting standards
    “ At the top of every bubble, everyone is convinced it's not yet a bubble.”

  10. #11860
    percy
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    Quote Originally Posted by winner69 View Post
    The last DRP didn’t even make up for the $15m reduction in equity from the increased doubtful debt provision needed to comply with new accounting standards
    Comparing a "one off" [to comply with new accounting standards] to an "ongoing" DRP is misleading.

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