HGH - Heartland Group Holdings

[winner69]

DRP at $1.59 and a bit

Hope they are worth more than that in a few months time.

[winner69]

https://sendy.tarawera.co.nz/l/J6oLV...92r42mDUBCAvMw

You won’t be entirely happy PERCY will you

But only a trail and a display of innovation so no worries

[percy]

You won’t be entirely happy PERCY will you

But only a trail and a display of innovation so no worries

No, hopefully the trial offering will not be too successful...lol.
Trouble is, HGH's online products are proving too successful.
Jeff does state "The rates created very low margins for Heartland,but if the trial was successful, it would put in place wholesale loans that would create a better return."
Last time I spoke to Jeff,[sometime ago] he said it was an opportunity for HGH to earn a margin, for very little, or no more overhead.Systems were already in place.
An add on product.

ps.In my book selling days I avoided low margins.Time was better spent on high margins.Low margins were waste of time and effort. "Why bother"? Yet Jeff feels it is an easy add on.Perhaps online is a lot different from the physical handing of books I was used to.?

[bull....]

Heartland jumps back into home loan market with 2.89% interest rate

https://www.stuff.co.nz/business/119...-interest-rate

joining simplicity in low rate mortgages.

[iceman]

Umm. Not sure about this latest move. Prefer to see them focused on areas where they are not in direct competition with the big 4. This may upset them !!

[Beagle]

Lending money out at those rates does not impress me.

[Snoopy]

No, hopefully the trial offering will not be too successful...lol.
Trouble is, HGH's online products are proving too successful.
Jeff does state:

"The rates created very low margins for Heartland,but if the trial was successful, it would put in place wholesale loans that would create a better return."

Last time I spoke to Jeff [sometime ago], he said it was an opportunity for HGH to earn a margin, for very little, or no more overhead.Systems were already in place.
An add on product.

I am intrigued by Jeff's comment:

"it would put in place wholesale loans that would create a better return."

Jeff is gunning for retail only loans as I read the article. So I think the article implies that Jeff must be looking at eventually rolling up these loans and offering them to a wholesale provider: IOW this is loan securitization by another name. The interesting thing is, often the willing buyer of these securitized loans is one of the big banks. A big bank might not take too kindly to Heartland undercutting their retail mortgage business then being asked to buy those 'Heartland pilfered' loans back at a wholesale rate that further undercuts their big bank margin. So maybe Jeff is looking to wholesale those loans somewhere else?

We also know that Jeff is looking for longer term wholesale funding for the reverse mortgage business. In an environment where 'cash is king' such wholesale funding might be getting harder to find. But what if Jeff was able to package the wholesale funding of the NZ reverse mortgages with an equivalent sized package of conventional mortgages? Straight away, the zero cashflow until maturity problem of a purely reverse mortgage only portfolio is solved. Jeff, thinking two steps ahead of the competition, does it again!

SNOOPY

P.S. It is interesting the offer is only for stand alone houses, and only in 'blue chip' locations. Jeff looks to be a bit nervous about the property market, and perhaps he sees this restriction as a way to derisk?

[percy]

Jeff is gunning for retail only loans as I read the article. So I think the article implies that Jeff must be looking at eventually rolling up these loans and offering them to a wholesale provider: IOW this is loan securitization by another name.
P.S. It is interesting the offer is only for stand alone houses, and only in 'blue chip' locations. Jeff looks to be a bit nervous about the property market, and perhaps he sees this restriction as a way to derisk?

Very much we can do it,with little effort,make a margin,and do it on our terms.

[ziggy415]

Very much we can do it,with little effort,make a margin,and do it on our terms.

And he announced it the day after the drp price was calculated....looking after shareholders I reckon

[Fred_Rubble]

Neo banks (online) are doing well in Australia, no doubt Heartland has observed this.