Magazine article American Banker

N.Y.'S Appetite for ARMs Trails Nation's

Magazine article American Banker

N.Y.'S Appetite for ARMs Trails Nation's

Article excerpt

Higher interest rates have created stronger demand for adjustablerate products nationwide - but not in New York.

Empire State consumers are lagging in their interest in adjustable-rate home loans. New Yorkers prefer ho-hum fixed-rate products. At least for now.

Many lenders confirm that New York State is below-average when it comes to ARMs production.

More than 80% of all residential loans made at GFC Mortgage Bankers Inc., based in New York City, are made at fixed rates, said Abraham Eisner, executive vice president.

At Green Point Savings Bank, a New York thrift, customers still prefer fixed-rate loans, according to an executive vice president.

"There are a lot of cultural differences between the East Coast and the West Coast, and this is just one example of that," said Patrick J. McEnerney, regional vice president, Bank of New York Mortgage Co.

Mr. McEnerney attributed the difference to low turnover. A.s of last year, New York State homeowers moved to new homes just once every 20 years, on average, according to Chicago Title and Trust Co. Only Maine homeowners stay put longer. In Nevada, by comparison, homeowners switch dwellings every seven years.

Mr. McEnerney said slow turnover encourages a preference for fixed-rate loans.

But James J. Beardi, president, M&T Mortgage Corp., Buffalo, said New Yorkers in only certain regions of the Empire State prefer fixed-rate loans.

In Western New York, fixedrate loans are still the rage, Mr. …

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