Analyst: TCF's Risk Profile Up
TCF Financial, a Minnesota-based savings institution, has a "higher risk loan portfolio" than some of its peers, according to analysts at CreditSights.
Specifically, TCF's exposure to fixed-rate home-equity loans that have interest-only repayment plans raises questions, according to a recent CreditSights report. The analysts also noted that TCF has substantial commercial real estate and equipment leasing loans on its books.
TCF's consumer loan portfolio totaled $5.2 billion at the end of last year, with home-equity loans and lines representing most of the portfolio. TCF's HELOCs only require regular payment of interest and do not require principal repayment on a regular basis.
However, TCF's home-equity portfolio does not contain loans with multiple payment options or "teaser" rates, according to the company.
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