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Housing Finance: HFCK a diamond in the rough
Rank: Elder Joined: 1/21/2010 Posts: 6,675 Location: Nairobi
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mwekez@ji wrote:
@guru, KYI - Know Your Investments
Most banks have cut their base rate—which means that their real lending rates are higher since they charge a premium to borrowers that is added onto the quoted rate based on the evaluation of the customers’ default risk.
@mwekez@ji from the above post i gather you are saying that HFCK does not have a mechanism of differentiating the default risks of various customers and hence offers a uniform effective rate. This scares me very much about the quality of the balance sheet because Doesn't it mean that all the high potential defaulters are running to HFCK for cheap debt that cannot be found elsewhere?? Mark 12:29
Deuteronomy 4:16
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Rank: Chief Joined: 5/31/2011 Posts: 5,121
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guru267 wrote:mwekez@ji wrote:guru267 wrote:mwekez@ji wrote:guru267 wrote:mwekez@ji wrote:BTW, rates given by HF are the effective rates. No risk premium is loaded thereafter Are you saying that a banker with a mortgage in Runda will pay the same effective rate as a civil servant with a mortgage in umoja? What a question! You should know there are special classes of borrowers who enjoy lower rate than the effective rate that is made public.
BOTTOM LINE: 1. HF does not load risk premium on the effective rate 2. HF will continue to be the preferred mortgage lender 3. HF will continue winning market share . Does no one in HFCK pay above the effective rate?? Just curious! Where did you find out about HFs lack of a risk premium?? @guru, KYI - Know Your Investments Housing Finance reduces lending rate to 18 per cent “Ours is an effective rate and it’s the level at which we lend to customers as opposed to the base rate. The lower cost of borrowing will help to turnaround our loan book,” said Frank Ireri Housing Finance managing director. Most banks have cut their base rate—which means that their real lending rates are higher since they charge a premium to borrowers that is added onto the quoted rate based on the evaluation of the customers’ default risk. http://www.businessdailyafrica....14/-/uotnai/-/index.html @mwekez@ji from the above post i gather you are saying that HFCK does not have a mechanism of differentiating the default risks of various customers and hence offers a uniform effective rate. This scares me very much about the quality of the balance sheet because Doesn't it mean that all the high potential defaulters are running to HFCK for cheap debt that cannot be found elsewhere?? SMH! You got it all wrong and that is very scary. A guru of your status should know better. Only then will you comprehend the unique lending models adopted by HFCK and why it will continue being the leader of the mortgage industry with good quality assets.
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Rank: Chief Joined: 5/31/2011 Posts: 5,121
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t-godd wrote:@mwekezaji, who are the share registrars of HFCK? Could you please provide their contacts? Thanks. HFCK themselves. They sit in Rehani House, Kenyatta Avenue. Contact: Shares.department@housing.co.ke
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Rank: New-farer Joined: 8/14/2010 Posts: 28 Location: Limuru
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mwekez@ji wrote:t-godd wrote:@mwekezaji, who are the share registrars of HFCK? Could you please provide their contacts? Thanks. HFCK themselves. They sit in Rehani House, Kenyatta Avenue. Contact: Shares.department@housing.co.ke Asante. L-TOWNS OWN SINCE '90
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Rank: Elder Joined: 7/21/2010 Posts: 6,183 Location: nairobi
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@T-godd ask me am from there kukula doo-they do it themselves shares dept. Tel 3262316/314/322 email: shares.department@housing.co.ke "Don't let the fear of losing be greater than the excitement of winning."
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Rank: Chief Joined: 8/4/2010 Posts: 8,977
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hisah wrote:I continue to fancy the volume spread. 2,014,300 shares traded today. Last week 1M shares were traded. Closed @13.25/- The rebound will be snappish when it comes.  Vol - 1,123,400 and closing VWAP @13.35/-$15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
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Rank: Elder Joined: 7/21/2010 Posts: 6,183 Location: nairobi
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Where is this huge volume coming from and the price is depressed? "Don't let the fear of losing be greater than the excitement of winning."
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Rank: Elder Joined: 1/21/2010 Posts: 6,675 Location: Nairobi
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mwekez@ji wrote: You got it all wrong and that is very scary. A guru of your status should know better. Only then will you comprehend the unique lending models adopted by HFCK and why it will continue being the leader of the mortgage industry with good quality assets. Help me understand what I have got all wrong! You were the one that said all customers of HFCK pay one effective rate! You were the one that said that HFCK did not attach risk premiums to their dear customers Which unique lending models calculate ONE rate for all customers?? It sounds pretty basic to me!  Mark 12:29
Deuteronomy 4:16
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Rank: Chief Joined: 8/4/2010 Posts: 8,977
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mlennyma wrote:Where is this huge volume coming from and the price is depressed? A market has market makers...$15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
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Rank: Chief Joined: 8/4/2010 Posts: 8,977
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High Court Ruling In Mortgage Dispute - http://www.the-star.co.k...to-kenya-to-do-business
Quite interesting this case. Now with the new land laws, the hammer has swung to the client with the banks becoming the anvil... Oh, that pounding will hurt... $15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
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Rank: Elder Joined: 6/23/2009 Posts: 13,516 Location: nairobi
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my KES 0.70 per share interim dividend has checked in and more so js about on time with an acceptable one day delay. HFCK is the last mbus. Wazuans had better not be left behind
HF 90,000 ABP 3.83; KQ 414,100 ABP 7.92; MTN 23,800 ABP 6.45
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Rank: Chief Joined: 1/3/2007 Posts: 18,103 Location: Nairobi
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hisah wrote:High Court Ruling In Mortgage Dispute - http://www.the-star.co.k...to-kenya-to-do-business
Quite interesting this case. Now with the new land laws, the hammer has swung to the client with the banks becoming the anvil... Oh, that pounding will hurt... I warned folks about the potential issues with the new land laws. Caveat Emptor. *On all other metrics I like HFCK. The new land laws scare me as an investor* Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Chief Joined: 5/31/2011 Posts: 5,121
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guru267 wrote:mwekez@ji wrote: You got it all wrong and that is very scary. A guru of your status should know better. Only then will you comprehend the unique lending models adopted by HFCK and why it will continue being the leader of the mortgage industry with good quality assets. Help me understand what I have got all wrong! You were the one that said all customers of HFCK pay one effective rate! You were the one that said that HFCK did not attach risk premiums to their dear customers Which unique lending models calculate ONE rate for all customers?? It sounds pretty basic to me! Recap for your comprehension: 1.The rate given by HF is effective rate and no risk premium is loaded thereafter. 2.Special classes of borrowers get lower rate than the effective rate that is made public. 3.These HF pricing models are unique from the exploitative models applied by other lenders who quote base rate and then load high risk premium on the borrower
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Rank: Chief Joined: 5/31/2011 Posts: 5,121
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VituVingiSana wrote: I warned folks about the potential issues with the new land laws. Caveat Emptor. *On all other metrics I like HFCK. The new land laws scare me as an investor* deceiving¿ Where did the new land laws influence the outcome of the case?
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Rank: Chief Joined: 8/4/2010 Posts: 8,977
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mwekez@ji wrote:VituVingiSana wrote: I warned folks about the potential issues with the new land laws. Caveat Emptor. *On all other metrics I like HFCK. The new land laws scare me as an investor* deceiving¿ Where did the new land laws influence the outcome of the case? The point is, this case was won using the crude law. Now how many such cases can the banksters win with the new land laws? $15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
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Rank: Chief Joined: 1/3/2007 Posts: 18,103 Location: Nairobi
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hisah wrote:mwekez@ji wrote:VituVingiSana wrote: I warned folks about the potential issues with the new land laws. Caveat Emptor. *On all other metrics I like HFCK. The new land laws scare me as an investor* deceiving¿ Where did the new land laws influence the outcome of the case? The point is, this case was won using the crude law. Now how many such cases can the banksters win with the new land laws? Hmmm, I mis-spoke. I remain queasy until a case is tried & a precedent set. I think the laws are populist but the banks are partly to blame. As is the slow 'justice' system. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Chief Joined: 5/31/2011 Posts: 5,121
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VituVingiSana wrote:hisah wrote:mwekez@ji wrote:VituVingiSana wrote: I warned folks about the potential issues with the new land laws. Caveat Emptor. *On all other metrics I like HFCK. The new land laws scare me as an investor* deceiving¿ Where did the new land laws influence the outcome of the case? The point is, this case was won using the crude law. Now how many such cases can the banksters win with the new land laws? Hmmm, I mis-spoke. I remain queasy until a case is tried & a precedent set. I think the laws are populist but the banks are partly to blame. As is the slow 'justice' system. Time will test the new land laws and like the norm, cases will be won and some lost. The fear of the new land laws is overblown. Never will any country draft a law to crumble the financial system
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Rank: Chief Joined: 1/3/2007 Posts: 18,103 Location: Nairobi
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mwekez@ji wrote:VituVingiSana wrote:hisah wrote:mwekez@ji wrote:VituVingiSana wrote: I warned folks about the potential issues with the new land laws. Caveat Emptor. *On all other metrics I like HFCK. The new land laws scare me as an investor* deceiving¿ Where did the new land laws influence the outcome of the case? The point is, this case was won using the crude law. Now how many such cases can the banksters win with the new land laws? Hmmm, I mis-spoke. I remain queasy until a case is tried & a precedent set. I think the laws are populist but the banks are partly to blame. As is the slow 'justice' system. Time will test the new land laws and like the norm, cases will be won and some lost. The fear of the new land laws is overblown. Never will any country draft a law to crumble the financial system Populism. The politician panders to the lowest common denominator. Look at the agricultural sector. Those laws have destroyed the pyrethrum sector, decimated coffee & lots of problems in the sugar industry. Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Chief Joined: 8/4/2010 Posts: 8,977
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The web is quite interesting if you start digging for information. I wonder how many people are aware that this KE site exists - http://www.irac.co.ke - Interest Rates Advisory Centre - as per their website they are located at Ambassador Court, Block A, Flat No. 3, Milimani Road (Directly Opposite Heron Hotel, next to former CID Hqtrs). From the site I can see a number of HF cases... http://bit.ly/S9vJNg - HF's penalty interest charges. http://bit.ly/S9vJNg - Class action against HF They also have some case studies - http://www.irac.co.ke/cstudies.html
Is this organization in existence to date? $15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
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Rank: Elder Joined: 9/23/2009 Posts: 8,083 Location: Enk are Nyirobi
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No more new money to throw into this thing. I think i will take profit in Safcom and throw it in. Life is short. Live passionately.
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