Illinois Thrift Disposing of Its Mortgages through Securitization to Boost Liquidity

By Bronstien, Barbara F. | American Banker, January 10, 1996 | Go to article overview

Illinois Thrift Disposing of Its Mortgages through Securitization to Boost Liquidity


Bronstien, Barbara F., American Banker


A Chicago-area savings bank, one of a growing number of midsize thrifts seeking banklike earnings streams, is jettisoning a large portion of its fixed-rate assets.

First Federal Bank for Savings, Des Plaines, Ill., last week securitized a large chunk of 15-year and 30-year mortgage loans to sell in the coming months.

The move is part of an effort to improve liquidity, by decreasing long term, fixed-rate loans, and diversify lending.

"It's always been my intent over time to make us more of a commercial bank," said president and chief executive Larry G. Gillie, who was a commercial banker for more than 20 years before joining $564 million-asset First Federal in 1987. "To be viable long term, we needed to be more diversified in the balance sheet."

The federally chartered stock savings bank, owned by FirstFed Bancshares, will sell $116 million in securities backed by 15-year and 30-year fixed-rate mortgages. First Federal will retain servicing on the loans.

The sale is expected to bring in more than $2.1 million in gains and fees, based on recent price estimates, the company said.

Management said it then can redeploy funds in variable-rate investments and diversify its loan products into areas such as commercial and construction lending. …

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Illinois Thrift Disposing of Its Mortgages through Securitization to Boost Liquidity
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.