LIZ: BREAKING NEWS AT THOUSAND
EMPLOYEES IN THE MORTGAGE
BANKING ARE HATED THE BALANCE OF
THIS HOUR, BLOOMBERG REPORTS
THAT JB MORGENTHALER TO SPEAK IN
THE U.S. IS PREPARING TO LAY OFF
ABOUT 500 EMPLOYEES IN THE HOME
LENDING BUSINESS AND REASSIGN
ANOTHER 500.
JP IS SLAMMING DEMAND IN THE
RECENT RISE IN MORTGAGE RATES
AND HOW MUCH OF A REASON.
ACCORDING TO FREDDIE.
>> THE AVERAGE YEAR FIXED-RATE
STAND THAT 5.70%.
THAT IS A 51% INCREASE
YEAR-OVER-YEAR.
ALLIANT CREDIT UNION IS ONE OF
THE LARGEST TOP CREDIT UNIONS IN
THE U.S.
600,000 MEMBERS NATIONWIDE,
15 BILLION AND ASSETS UNDER
MANAGEMENT.
THE LARGEST CREDIT UNION IN
ILLINOIS AND ONE OF THE TOP FIVE
IN THE USA AND THEY HUNT FOR THE
BEST RATES ON ALL KINDS OF LOANS
RITA FOX BUSINESS EXCLUSIVE IS
THE PRESIDENT AND CEO DENNIS
DEVINE.
WOW, YOU START TO REALLY SEE
THAT THIS IS HITTING HOME WHEN
J.P. MORGAN SAYS 500W, WE DON’T
HAVE WORK FOR YOU AT THIS POINT
THAT MUST MEAN THE MORTGAGE
WORLD IS DRYING UP, WHAT YOU
SEEN ON THE GROUND.
>> FIRST OF ALL THEY GET FOR
HAVING ME.
IT IS REAL.
YOU SEE MORTGAGE RATES, A 30
YEAR RATE TWICE WHAT IT WAS A
YEAR AGO.
THE OPPORTUNITY TO REFINANCE IS
MUCH LESS THAN IT WAS, HOME
PRICES INCREASED ALONG WITH
THOSE RATES AND YOU SEE A
SLOWDOWN MORTGAGE HAS ALWAYS
BEEN A SIMPLE BUSINESS BUT A
TOUGH ONE FOR THE OUTCOME.
LIZ: YOU DO MORTGAGES AND ALSO
FOR YOUR 600,000 CLIENTS HOPE TO
FIND THE BEST POSSIBLE RATES NOT
JUST FOR MORTGAGES BUT ALSO FOR
CAR LOANS AND CREDIT CARD LOANS
ET CETERA.
TELL ME WHAT YOU ARE FINDING AND HOW MUCH HARDER IS IT TO FIND IT
HOW MUCH HARDER IS IT TO FIND IT
REALLY LOW RATES AT THIS POINT,
WE ARE A NATIONAL DIGITAL
INSTITUTION.
WE HAVE THE BENEFIT OF THE BEST
COST STRUCTURES IN INDUSTRY.
ANOTHER FACTOR GOING ON AT
FINANCIAL SERVICES RIGHT NOW IS
BANK BRANCHES ARE CLOSING AT A
RECORD HIGH.
BRING A DIGITAL INSTITUTION IS
ABLE TO TAKE THE BENEFIT OF THE
COST STRUCTURE.
THAT’S EXACTLY WHAT WE SEE WHEN
WERE IN THE MARKET RIGHT NOW.
INSTITUTIONS THAT ARE DIGITALLY
FOCUSED AND MORE FOCUSED ON
DELIVERING DIGITAL EXPERIENCE TO
THE CUSTOMERS ARE ABLE TO DO SO
IN WAYS TO SAVE.
LIZ: YOU HAVE SCALES, WHAT ARE
YOU SEEING WHAT’S THE LOWEST YOU
CAN GET AS AN AVERAGE 30 YEAR
FIXED FOR YOUR ALLIANCE
CUSTOMERS.
>> YOU’LL FIND IS A VERY
COMPETITIVE MARKET ACROSS THE 30
YEAR FIXED BASE SO YOU’LL FIND A
BIT BETTER THAN YOU JUST QUOTED
ON THE NATIONAL BASIS PER THE
BUT THE THING THAT YOU LOOK TO
IN ADDITION SOME INSTITUTIONS
WILL WORK WITH THEIR CUSTOMERS
TO STRUCTURE LOANS IN DIFFERENT
WAYS.
FIXED FOR A PERIOD OF TIME AND
MARIUPOL AFTER THAT.
IT’S MUCH DIFFERENT UNDERWRITING
CRITERIA THAT WHAT WOULD’VE
EXISTED A DECADE AGO FOR THE
GREAT RECESSION BUT THERE’S
OPPORTUNITIES TO WORK WITH THE
FINANCIAL INSTITUTION YOU BE
ABLE TO FIND WAYS TO STRUCTURE
YOUR DEBT THAT WAY.
LIZ: WHAT ABOUT AUTO LOANS ARE
YOU SEEING ANY SLOWDOWN AT AUTO
LOANS THIS POINT?
>> WE ARE IN THE INDUSTRY IS.
YOU SEE EVEN THE MOST MULTI
NUMBER AUTO SALES.
THAT’S HABITED IMPACT.
RATES ARE GOING UP AND COST OF
FUEL OF COURSE IS A FACTOR IN
HOW INDIVIDUALS ARE THINKING NOT
TO MENTION THE SUPPLY CHAIN IS
REALLY REDUCED --.
LIZ: WE’VE JUST SEEN WINNEBAGO,
WITH VERY STRONG EARNINGS
NUMBERS.
YOU GUYS DO RV LOANS.
I ALSO UNDERSTAND YOU DO TESLA
LOANS, EB LOANS.
TELL ME ABOUT THE MARKET FOR
THAT AT THE MOMENT.
>> THE RV MARKET HAS REALLY BEEN
HOT THROUGH THE PANDEMIC AND
AFTER.
IT’S AN OPPORTUNITY FOR MANY TO
FIND INTO TRAVEL WITHIN THE U.S.
RV DEALER SALES IS AN IMPORTANT
CLASS FOR ALLIANT AND WE’VE BEEN
RIGHT THERE ALONG WITH THEM.
TVS HAVE SEEN GROWTH.
YOU SEE CONTINUED GROWTH IN THAT MANUFACTURER AS WELL AS OTHERS
MANUFACTURER AS WELL AS OTHERS
ACROSS THE INDUSTRY.
LIZ: I WANT TO FLAG OUR VIEWERS
THE DOW, S&P, NASDAQ AND
TRANSPORT HAVE TURNED NEGATIVE
WHILE WERE SPEAKING.
I’M NOT BLAMING YOU.
TALK ABOUT THE SILVER LINING
HERE, HIGHER RATES MEAN SAVERS
ARE FINALLY GETTING A BETTER
RATE OF RETURN BUT IS IT WHERE
YOU WOULD LIKE TO SEE YOU AND
WHERE YOU THINK IT SHOULD BE?
>> I’M SURPRISED THERE’S NOT
MORE ATTENTION ON THIS TOPIC
RIGHT NOW.
THERE’S NO DOUBT AS INTEREST
RATES ARE INCREASING ON EACH OF
THE LOAN CATEGORIES WE
DISCUSSED, THE SAVINGS RATES
HAVE THE ABILITY TO BE BETTER
THAN THEY’VE EVER BEEN.
NOT EVERY FINANCIAL INSTITUTION
IS DOING THAT IN PASSING THOSE
RATES ON BUT IF YOU DO A BIT OF
SHOPPING YOU WILL FIND THIS MANY
INSTITUTIONS ESPECIALLY DIGITAL
INSTITUTIONS THAT ARE INCREASING
RATES RAPIDLY.
>> 1% FOR A MINIMARKET SAVINGS
RATE IS VERY COMMON TO FIND IT
THIS POINT.
I THINK YOU WILL FIND 2% ON CDS
WITH TERMS AS SHORT AS 18
MONTHS.
THAT’S A VAST INCREASE THAN WHAT
YOU WOULD SEE A FEW MONTH AGO.
AT THE SILVERLINING TO THIS AS
FOLKS EXITED THE RECESSION ON
AVERAGE WITH MORE SAVINGS AND
EVER BEING PLAN FOR NOW AND TAKE
ADVANTAGE OF THE HIGHER RATES
WILL HELP.
>> DENNIS, THANK YOU, YOU’RE