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NY Community Bancorp CEO on the State of Lending

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    New York Community Bancorp CEO Joseph Ficalora on banks’ conservative lending.

  • Duration 4:17
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This transcript is automatically generated

And my next guest says not so fast -- does affect -- our us just wants Washington to stop trying to help because it's only Aaron.

He is the -- CEO of New -- Community Bank would have -- thinking -- that obesity is the best approach might be a hands off approach -- what.

Well you know.

In in a period like this there is need for the -- cycle to -- to a point where it stabilizes.

And then has the opportunity -- grow again.

The the unfortunate reality is that we are creating many uncertainties.

And and the enemy of recovery is uncertainty but who's creating uncertainty.

The government.

-- -- ways the ways in which we we approach.

Solutions to the economic problems.

You need for example the largest components of what contributes.

To the growth in -- dollar volume.

-- appreciation in housing housing is not appreciating housing has -- stabilizing in some markets in the New York market.

Housing is very strong -- we have a nation.

And in the nation we need to have more buyers.

In order to actually stabilize the market but we had a sales.

Confidence though and on and I'm part of bank's figures to -- -- and consumers to go try and borrow I.

Both in the case of that -- bank -- cars we lend nationally on on house loans.

But most of the people are getting house loans are really not.

The people that need to be getting house close these -- the people at a refinancing loans so we're Bieber you're requirements.

Tougher than -- today -- -- -- absolutely.

Have salute the what are your customers need in order to get money well our our average -- -- we're lending our average fight those about 767.

That's pretty -- And and our LTV's are in the sixties loan to direction.

Those loan to values -- agrees that 90% on it 100%.

Right there's a longer but but a 100% in 106 sort of five.

-- very different in ten or eleven or so went if we're only sixty -- percent in eleven that's XER percent of minority discounted by 50%.

So you're still playing it conservative yes and and that is that's probably good sense yet but when will you and others like him and -- your view.

There -- always steady through the crisis yeah.

Open up a little because the criticism is not not this is of you guys but the -- -- in general is all right we understand you had to rein in your -- a little bit.

-- -- Yeah well for example we've had no losses -- want to fulfillment housing and in fact even -- -- in the business and business stingy.

Well careful well what castle.

And and you know we work basically for our shareholders you know we don't work for the government we work for our shareholders.

And then you know a free society.

That is to go in the go go housing period which is -- -- for the -- polls get along that's right didn't that.

Undo this whole thing that -- -- -- look at housing hasn't birthright rather than as a -- correct.

You you need to have a reasonable expectation of being repaid where portfolio.

So we lend money.

If you don't repay we lose that money so we want to be sure that you're the right person you're not selling -- -- that's right.

So when when you think about the way our our basic model is here in New York City we do.

Multifamily.

Rent controlled rent stabilized housing be done about 36 billion dollars in that particular asset that asset is taken out many.

Banks that were around long sticker that we stick with so.

Real quick thought on these mortgage -- programs that.

What you think they were coming on -- part of that.

No they they do not work because basically what you're doing is -- long gaining the life of -- nonperforming asset.

Instead of moving the -- and into the hands of people that are actually buying and selling buying and selling.

You're basically keeping the house in the hands of -- person who does not have the ability to -- And as a result the market doesn't change value if they say in the house the value of the house doesn't change.

So that is going to have a longer.

Adverse effect on recovery too much.

Joseph it's from the now it's again got that back half -- Provera absolutely is a very good that are in it too much sense I don't know what about it got attacked.

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