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Hudson City Bancorp, Inc. Message Board

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  • ryanruiz100 ryanruiz100 Oct 14, 2010 11:47 PM Flag

    ominous for Hcbk?

    jshort, I am right. I'm not here to spread rumors.

    “Brokers now provide 75 percent of our lending business, and we needed a more efficient system for taking applications and locking rates,” said Bernadette Wiese, vice president of Mortgage Origination for Hudson City Savings Bank. “OpenClose offered safer, seamless loan registration with the security we needed. These features--combined with its appealing cost--cemented our decision.”

    "Hudson City Savings mortgage-backed securities are issued by GinnieMae, FannieMae or FreddieMac. At December 31, 2009, mortgage-backed securities classified as held to maturity totaled $9.96 billion, or 16.5% of total assets, while $11.12 billion, or 18.5% of total assets, were classified as available for sale. At December 31, 2009, the mortgage-backed securities portfolio had a weighted-average rate of 4.70% and a fair value of approximately $21.44 billion. Of the mortgage-backed securities it held at December 31, 2009, $14.91 billion, or 70.7% of total mortgage-backed securities, had adjustable rates and $6.17 billion, or 29.3% of total mortgage-backed securities, had fixed rates. Its mortgage-backed securities portfolio includes real estate mortgage investment conduits (REMICs), which are securities derived by reallocating cash flows from mortgage pass-through securities or from pools of mortgage loans held by a trust. REMICs are a form of, and are often referred to as, collateralized mortgage obligations (CMOs). At December 31, 2009, it held $3.63 billion of fixed-rate REMICs, which constituted 17.2% of its mortgage-backed securities portfolio. Mortgage-backed security purchases totaled $6.87 billion during 2009. At December 31, 2009, mortgage-backed securities with an amortized cost of $14.48 billion were used as collateral for securities sold under agreements to repurchase."

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    • Thanks for the link. So how does this square with the 13 Sep presentation where Mr. Hermance claims the following: In the first 6 months of 2010 Hudson originated 2.8B of home loans and purchased 524 million....or from the 31 Mar '10 presentation (slide 11) when they said the originated 1.4B in loans and purchased 404.6 million?

      So HCBK must consider their broker network to be loans they originate.

      Nothing here should be seen as a negative...their loans are solid, averaging a down-payment of 40%.


    • My understanding is this....Investing in mortgage backed SECURITIES, ie. GNMA's etc. is a lot different than getting Mortgages either through walk-ins or by Mortgage Brokers in NY/NJ/CT who are adhereing to the underwriting standards of HCBK. One is an investment just like if I wanted to invest in a GNMA fund. the other is a Mortgage which is local in nature and totally serviced by HCBK.

      You are implying that HCBK is no different than all these banks that bought and sold Collateralized Mortgage Obligation. That is wrong and NOT the case.....Remember HCBK HOLDS and SERVICES every mortgage they make whether directly by walk-ins or through local mortgage brokers.

      Also, remember HCBK had absolutely NO NEED to take TARP or any other hand out by the Govt.

      HCBK has also met every Govt. requirement and then some.

      Investing in GNMA etc. obligations is like anyone of us buying bonds. You are spreading false information as it applies and relates to MORTGAGE LENDING.....NOT THE SAME!

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