Normally, banks record profits on loans only as they are repaid, whether they securitize the loans or hold them on their books.
What is the robbing of a bank compared to the founding of a bank?
Like many other banks and finance companies, Green Tree used a process called securitization to resell its home loans to outside investors. Green Tree grouped thousands of these small loans into a pool worth hundreds of millions of dollars.
I learned how to lend money by cleaning up the messes of others who had made loans before me.
I'm an executive director at a company which gives out retail loans.
Investment in Shriram will actually enable us to enter some of the retail segments such as vehicle financing, consumer and gold loans, and other products such as insurance, mutual funds, among others, where we wanted to have a footprint.
All of the marketplaces like Prosper, LendingClub, etc., as they get larger, they flip from being retail capital to institutional capital.
Expertise and judgment in the art of lending for novel ventures must be reacquired.
It is the quality of lending over the quantity of lending.
If you are in banking and lending, surprise outcomes are likely to be negative for you.
Banks lend by creating credit. They create the means of payment out of nothing
Rather than going through a commercial banking training program, at the first bank I ever worked in, I was the chairman. And it was my own money, so we loaned it out like it was my own money.
My focus is on the financial sector, on getting credit going, getting lending flowing. I can't imagine anything that would have a bigger stimulative impact.
Our approach on lending has always been that we will lend to India-linked assets, because that's the risk that we understand, and that is the business that has been doing very well.
Except for a handful of banks that just keep a handful of their loans in portfolio, on their balance sheet, every other loan that's originated in the United States - whether from a bank, mortgage company, mortgage broker - is sold into the secondary market.
