Bank of New Hampshire

[codeman671]

Originally Posted by John Mercier

BNH rarely held a mortgage, even when it was LSB. Their interest rates were high and terms not mildly liberal as compared to other options that they would originate loans for.

I have been with them forever and never taken a consumer loan. My mortgage I asked them to keep in-house as a favor... it was a 20 year term five year adjustable with 20 percent down... not something most would opt for.

On the contrary I have had multiple mortgages with BNH and they kept every one in house. My main home was originated and is still with them. The rates were always competitive and Tammie Mahoney was a pleasure to deal with.

My island home was originated with Meredith Village, who promptly sold it off to Arvest Bank (a Walmart company).

I bank with BNH and will stay with them for now. My local branch in Dover is excellent to work with.

[John Mercier]

Originally Posted by codeman671

On the contrary I have had multiple mortgages with BNH and they kept every one in house. My main home was originated and is still with them. The rates were always competitive and Tammie Mahoney was a pleasure to deal with.

My island home was originated with Meredith Village, who promptly sold it off to Arvest Bank (a Walmart company).

I bank with BNH and will stay with them for now. My local branch in Dover is excellent to work with.

You are sure they hold the note?
Because if it doesn't state it in your mortgage documents, they are not required to.

Carroll Stafford - though long ago - made it clear to me that low liquidity, low interest fixed mortgages were not the best investments for a bank.

So my 20 year term adjustable was slightly lower in the interest rate over a 30 year fixed, shorter than a 30 year fixed, and had a much higher down payment than the 5% of recent originated loans.

He explained that regardless, the bank had to make money on the spread with a risk adjustment over a treasury.

[codeman671]

Originally Posted by John Mercier

You are sure they hold the note?
Because if it doesn't state it in your mortgage documents, they are not required to.

Carroll Stafford - though long ago - made it clear to me that low liquidity, low interest fixed mortgages were not the best investments for a bank.

So my 20 year term adjustable was slightly lower in the interest rate over a 30 year fixed, shorter than a 30 year fixed, and had a much higher down payment than the 5% of recent originated loans.

He explained that regardless, the bank had to make money on the spread with a risk adjustment over a treasury.

Yes of course I am positive they hold the note. All of mine have been portfolio loans, not assignable/sellable.

My loan with Meredith Village was not "servicing retained", and got sold immediately.

[John Mercier]

I wonder if they did hold too many in the portfolio.
There is usually that little extra with the interest... but when things reverse like now... it can hurt earnings.

[Descant]

Originally Posted by John Mercier

I wonder if they did hold too many in the portfolio.
There is usually that little extra with the interest... but when things reverse like now... it can hurt earnings.

Sounds possible, and they may not now be able to sell those loans (favorably). However, refusing to take new loans at higher interest rates and acquisition costs, doesn't appear to solve a low income portfolio issue. Waiting to "hear
the rest of the story."

[John Mercier]

As you pointed out... they stated that they would not originate.
They still may be investing.

But they may also be looking to treasuries depending on the risk/reward ratio.