What is Securitization and where did it originate from?
Happy Friday to all you readers out there. It's been a long a busy week for home loan and mortgage originators with all the HOOHAA of the National Credit Act. It does however look like the banks are slowly starting to get things under control again. Just to let you all know. Bank Submissions are now taking 10 - 14 days. It's no longer the 5 day turn around time we've all become accustomed to.
Anyway back to the topic of the day. RUDCO Finance Company.
Let me tell you these RUDCO boys are causing quite a stir at the moment. Take a look at the article on MoneyWeb's site: http://www.moneyweb.co.za/mw/view/mw/en/page38?oid=145005&sn=Detail&ccs_clear_cache=1#CMT_ANCHOR.
Apparently you can get your home loan now @ 6% interest. Be careful people, when a company (Rudco) claims to have financing from a external source and they're not backed by the banks or registered as a registered financial institution, those blinkers should start flapping.
Firstly: Who does Rudco get their financing from, and why are they not disclosing it.
Secondly: Rudco claim to be using the World Bank's interest rate of 5.7% (or something there about) which sounds to me like their money is coming from an international source.
Thirdly: If they go under and you have to transfer your home loan to another bank, you're going to be liable from transfer duties.
And another one: When you're qualified for a bond @ 6%, Rudco goes insolvent, you have to transfer your bond to ABSA and you're now paying interest @ 13% (HOW WILL AFFORD IT)
So my personal opinion, WATCH OUT PEOPLE!
I've been reading quite a couple of articles relating to these Rudco guys and I'm going to list them here cause I think it's something that people need to just watch out for before they switch their bonds. Consider your costs and consider the fact that Rudco Finance is not a "Fincially Registered Institution". I had a chat with the Rudco personal and they do not provide Financial advice either.
The whole point of going with someone to do your home loan is to get GOOD SOLID financial advice. This once again kind of defeats the purpose, plus you're paying RUDCO for this service. WHAT FOR?
See Car Today Rudco Discussion
See My Broadband Rudco Discussion