The recent hike in rates will temporarily reinforce the popularity of a highly successful mortgage product used by California thrifts. But signs point to a slowdown next year.

Bank executives and analysts are saying that mortgage loans tied to the 11th District Cost of Funds index, so-called COFI loans, will retain their advantage as long as short-term rates are on the upswing.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.