11 District Cost of Funds Index Stable

After reading the letter from the loan officer (“11th District Cost of Funds Index Down Side”) who took issue with Robert J. Bruss’ article, I find myself compelled to respond.

There are no other indexes that have consistently proven to be as stable as the 11th District Cost of Funds (COFI index). In fact, it has never moved more than 2% in any calendar year.

Her statement that the majority of COFI adjustable loans have negative amortization is typical of the misinformation that is prevalent in our industry. COFI loans, like all the indexes, come in many different shapes and sizes. The most popular of these gives the Borrower the option of negative amortization.

HOWARD KENNEDY

Loan Officer

Coast Federal Bank