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1. In a phrase, how would you describe
the past seven years for the lending market
for vacation ownership?
Frank Morrisroe, president,
Turbulent! With major players such as Textron leaving the market
space, a major shift in the timeshare sales/marketing business model
(focusing on profitability and lowering excessive marketing costs), and
a general recession in the country, only a vibrant self-sustaining busi-
ness could and did survive.
Shawn Brydge, senior vice president,
A roller coaster. In the past seven years, credit terms to vacation own-
ership developers have vacillated tremendously from very liberal
(2007/2008) to very conservative (2009/2010), and everything in
between. Perhaps the biggest change in the last seven years is the
tremendous increase in government regulation of lenders, and the
significant costs associated with meeting those requirements.
Carisa Azzi, senior vice president and chief financial officer,
A pendulum. Prior to the recession, there was a free
flow of liquidity. Lenders required minimal underwriting guidelines by
TIMESHARE
TALK
RESORTDEVELOPER.COM vacation industry review
APRIL – JUNE 2015
Industry Lending
Turns the Corner
Carisa Azzi Bill Ward Shawn Brydge
Lower interest rates and high levels of liquidity lead
to an optimistic outlook for vacation ownership.
Frank Morrisroe Jim Casey
It’s been called turbulent. The changing of the guard. And a roller coaster. However you describe the past few
years in the vacation ownership lending market, it’s been nothing short of a wild ride. But according to those we spoke to —
including leaders with lending institutions as well as successful resort developers and servicing companies — that ride is gain-
ing altitude. In fact, it wouldn’t be wrong to say that lenders are competing for opportunities to lend to qualified vacation own-
ership developers, providing everything from construction and acquisition financing to inventory loans and receivables. What
we’re hearing is optimism and confidence that vacation ownership has emerged and will remain a desirable investment and
that the outlook for developer borrowing is favorable. Read on to learn what the pundits are predicting for the near-future lend-
ing market.
“When the recession hit,
many critics expected
timeshare receivables to
tank, but the actual data
proved otherwise.
Timeshare experienced less
delinquency than
credit-card obligations and
home equity loans.”
— Bill Ward, vice president, Ward Financial Company
By Betsy Sheldon