How Has The Riskiness Of E-Trade’s Family Loan Portfolio Changed In Recent Years?

51.75
Trefis
ETFC: E*TRADE Financial logo
ETFC
E*TRADE Financial

E-Trade’s one-to-four family loans declined by 18% annually to $2.5 billion between 2012 and 2015. Furthermore, the riskiness of these loans also declined, as the loan-to-value ratios (LTV) of these loans dropped considerably. The Loan-To-Value (LTV) is the ratio of the amount of the loan to the the total value of the asset, which helps lenders assess credit risk. The percentage of E-Trade’s loans with LTV ratios above 100% has declined significantly; the table below shows the breakdown of the loan-to-value ratios of E-Trade’s one-to-four family loans.

1-4

 

Relevant Articles
  1. Coronavirus Recovery Watch: Capital Market Portfolio: 15% 5D Return vs. (-25%) YTD Return – [BlackRock, E*TRADE, Schwab & TD Ameritrade]
  2. Why Isn’t Charles Schwab’s Stock Benefiting From The Spike In Trading Volumes?
  3. E*TRADE: Will Lower Trading Commissions Cause Revenues To Be Short Of Consensus Estimates For FY 2019
  4. Is E*TRADE Stock Fairly Priced?
  5. Net Interest Revenue Will Form 40%, 60% or 80% Of E-Trade’s Stock In 2020?
  6. Changing Business Environment Likely To Be A Boon For Schwab and Ameritrade Despite Zero Commissions

Have more questions about E-Trade Financial? See the links below:

Notes:

1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com

2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for E-Trade

View Interactive Institutional Research (Powered by Trefis):

Global Large Cap | U.S. Mid & Small Cap | European Large & Mid Cap

More Trefis Research