As I was pointing out, I’m not seeing how CFC is going to find new customers or steal existing (good) customers elsewhere without offering a better rate or some incentive or some sort.
You’ve just asked the 64k question. Unless you come up with a good answer, their goose is cooked. I’ve said since last year they were headed for BK, based on that same question. Their whole business model, what made them profitable is no longer possible. So either they go back to doing conforming loans which are the grunt work end of lending, or they die. Even if they do go back to traditional types of lending, now they are competing with every other bank that does the same thing. I’d bet their costs are a lot higher, considering their costs of borrowing have soared.
