Banking & Finance

Comment

Comment by Jim Coburn on November 17, 2010 at 10:49am

The 31st NMBA Annual Conference concluded last week in San Diego as a success! Selected highlights:

*Our president announced the very latest marine finance stats & trends in addition to the NMBA's solid lending outreach plans for our industry
*Members & guests received training for building positive business cultures
*Important contemporary issues were tackled regarding affects of the oil spill, boat short sales, marine fraud dissection/tips & business marketing/networking benefits
*NMBA's leadership role for the industry on legal/legislative issues including financial reform, national titling, SBA lending and more
*The latest credit scoring info was shared with tips on effective use & how it affects our industry
*Another provocative, yet reliable analysis and forecast of the U.S and marine industry economies by Wells Fargo's Gina Martin-Adams

Don't miss next year's Conference in San Antonio, this year's Lending Workshop in Ft. Lauderdale (Dec. 4-6, 2010) and new posts on our website at www.marinebankers.org

Comment by Gary Rademaker on October 6, 2010 at 1:07pm

Here's a link to the movie on the web: http://www.xtranormal.com/watch/7114997/

Comment by Chris Lyons on October 6, 2010 at 12:57pm

OMG... That is great!! I'm still cracking up. How can I download this so I can email it to my dealers/brokers? I can't believe we are still getting these calls. oh wait, yes I do..

Comment by Gary Rademaker on April 30, 2010 at 1:43pm

Jim - thanks for providing further detail regarding this legislation. I pieced together a letter that we have encouraged all of our employees to send to our Senators. I'm providing it below as a convenience, so that MarineIndustry.org members can just copy, paste and send to their Senators as well. It is written for both boat and RV dealers...here it is:
Dear Senator ________,

The Recreational Vehicle and Boating industries are just now starting to recover from the recession. Manufacturers and dealers are beginning to hire and re-hire displaced workers. I am greatly concerned that the recovery will be stalled by making it harder for consumers to buy an RV or a boat by limiting their financing options.

I am writing you today regarding Senate Banking Committee Chairman Christopher Dodd’s proposed formation of a “Bureau of Consumer Financial Protection”. I am not opposed to the formation of the Bureau, however I believe it is imperative that the bill be amended to exempt RV and boat dealers. My understanding is that Senator Sam Brownback will be seeking the exemption of automobile dealers from the bill, and that he is open to modifying the amendment to include RV and boat dealers. I hope that you will support Senator Brownback in seeking this exemption, and more specifically that you will support the modification to include RV and boat dealerships.

Here are some thoughts regarding the exemption of automobile, RV and boat dealers from the bill:

1. The auto and recreational product finance model is sound. This financing is secured by a depreciating asset (the vehicle), which lenders must factor into their underwriting. This forces lenders to look to the borrower for repayment of the loan. Therefore, lending decisions must be based on due diligence. Conversely, homes that collateralize mortgages have traditionally increased in value, and therefore led to questionable and risky underwriting. Unlike mortgages, auto and recreational product finance did not experience a subprime lending crisis and has never posed a systemic risk.

2. Adding another layer of regulation will reduce availability of credit and increase costs to consumers.
Dealers are not lenders, they are facilitators. Dealers provide optional retail finance services at their dealerships in virtually every community in the country. Dealers increase financing competition by providing consumers with a wide variety of options from multiple financing sources. Dealers increase access to credit for consumers. Because of this competition, dealer assisted financing reduces the cost of credit to consumers.

Access to affordable credit is essential for automobile and recreational product buyers. Congress should not take any action that could increase the cost of credit to consumers. Over-regulation would put at risk the efficiency of the current system. The fact is, dealer assisted financing provides affordable options for consumers of all economic levels, and the service is entirely voluntary. Additionally, if consumers are not satisfied with financing at the dealership, they can find additional options locally.

3. Dealers are not seeking exemption from federal and state regulation; there are already effective federal and state laws that govern dealer-assisted financing. It is false to suggest that without the new bureau dealers would be left unregulated and in need of additional regulation. Dealers are subject to extensive federal regulation (e.g., the Truth in Lending Act, Fair Credit Reporting Act, etc.) and are also subject to the full range of state consumer protection statutes. Banks and finance companies that underwrite and service auto and recreational product loans would be covered by the proposed bureau. Therefore, there is no reason for further regulation of auto, RV and boat dealers.

Thank you for your consideration of this very important legislation and we all look forward to your support in this matter.

Comment by Jim Coburn on April 30, 2010 at 12:22pm

National Marine Bankers Association Legislative Action Alert
LegislativeAlert-NMBA04.29.10.doc

Comment by Chris Lyons on January 26, 2010 at 11:24am

I'm glad to hear a bank CEO is saying "it's time to lend". I hope that goes for REC LOANs also. The bad news for us on the West Coast is BB&T does not reach the Western US. The good news is some of the brokers and dealers on the West Coast is having a bit of luck with Wells Fargo at the branch level. Crazy stuff like stated income for units under $100K. Rates are a little higher than average but they are getting deals done. The bad news for us F&I guy's is they don't work with us folks. LET'S GET MORE BANKS OUT THERE CLOSING MORE DEALS. 2010, Boat loans are still a good bet for bankers.

Comment by Jim Coburn on January 26, 2010 at 8:32am

BB&T's CEO, Kelly King says "Now is the time to lend..." They believe lending can be expanded, right now, without being irresponsible.
1) Does your bank or your lending partner agree? 2) What are they doing to help and what position on lending are they taking today?

Comment by Ed Brailsford on January 12, 2010 at 11:36am

Off to the Atlanta Boat Show tomorrow, Greenvile and Charleston the following week to serve as on-site F&I specialist for dealers. We will see if the banks have loosened their credit writing, if anyone is purchasing boats, and compare it to the shows last year. I will keep you updated and call me at 843.442.6900 if I can be of any assistance.

Comment by Jim Coburn on January 5, 2010 at 8:24pm

Collateral valuation is an art, not a science.
You should give Len Sims at NADA a call. He knows way more about your/our industry than you may think.

Comment by Roger Blevins on January 5, 2010 at 1:38pm

I don't know where NADA gets its info but all the dealers I know use their retail values as wholesale "trade-in" pricing. Obviously, NADA is way off the mark. This seems to be a universal complaint from every dealer I talk to.

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