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Article: Financial institutions adapt to rising interest rates; mortgage bankers may face toughest short-term future. (Los Angeles, California) (Banking and Finance Special Report)
- Article from:
- Los Angeles Business Journal
- Article date:
- May 9, 1994
- Author:
CopyrightCOPYRIGHT 1994 CBJ, L.P. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Experts are divided on how the recent rise in interest rates is likely to affect Los Angeles' financial institutions.
Banks, thrifts and mortgage bankers will each be affected in different ways. Most analysts agreed, however, mortgage bankers will likely have the toughest time adjusting in the short run. Ironically, the institutions that may most benefit from rising interest rates are the troubled thrifts in Los Angeles, industry sources said.
Rising interest rates are likely to put a damper on loan originations. Thomas O'Donnell, a financial institutions analyst with Prudential Securities Inc. in New York, predicted overall originations nationwide could drop ...