# Worldmark - limitation on credits issued?



## lbrannma (Dec 15, 2012)

Hi,

Is there a limitation on the number of credits that may be issued by Worldmark's management? There is a limit with other timeshare systems that have a deed based on a week's fractional ownership in a piece of property. However, I don't see this with Worldmark

Thanks,
Lance


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## cotraveller (Dec 16, 2012)

lbrannma said:


> Hi,
> 
> Is there a limitation on the number of credits that may be issued by Worldmark's management? There is a limit with other timeshare systems that have a deed based on a week's fractional ownership in a piece of property. However, I don't see this with Worldmark
> 
> ...



WorldMark resorts are deeded to WorldMark, the Club, a non-profit corporation.  They are not deeded to the individual owners.  Owners purchase WorldMark credits giving them the right to use the resorts.  

The number of credits assigned to each WorldMark resort is fixed when the resort comes into the WorldMark system.  The only way new credits can be added to the WorldMark system is if a new resort is added by the developer.  When a new resort is added, new credits allocated to the new resort come into WorldMark. There is no limit to the number of resorts that can be added, therefore there is no upper limit on the total number of credits that could be in the WorldMark system.


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## ronparise (Dec 16, 2012)

to pick up were Co Traveler left off:

In the last year there were a number of units removed from the system, along with their credits so the total number of credits went down as a result; and some new resorts with new credits were brought into the system, adding to the total

You should also know that Worldmark credits are traded freely on the secondary market.  Interesting; the total number of Worldmark owners went down.  How can that be? more credits but less owners. It can only mean that existing owners are adding to their holdings, scooping up the credits as they become available.

That should answer a question you didnt ask. Is the number of credits held by any one individual limited in any way... The answer is no. 
One person can own as many Wolrdmark credits as their budget allows


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## LLW (Dec 16, 2012)

ronparise said:


> to pick up were Co Traveler left off:
> 
> In the last year there were a number of units removed from the system, along with their credits so the total number of credits went down as a result and some new resorts with new credits were brought into the system, adding to the total
> 
> ...



Actually, it means a lot of owners have been delinquent in making loan payments or maintenance fees in the recession, and the credits went back to Wyndham. That's why they sell to even those with poor credit history - if somebody defaults after paying for a while, they just take the credits back. The punishment can be very swift since it does not include foreclosure of deeded property. 

The number of owners have been slowly increasing back up again since the economy improved.

Reading the Independent Auditor's Report (available to owners) and watching the Annual Owner Meeting webcast would tell you exactly what happened.


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## lbrannma (Dec 16, 2012)

*Thanks... and a wmowners question*

Thanks All! Very helpful I will be a buyer thanks to this great bulletin board. 

It's too bad I'm not able to access wmowners.com since I live in Sweden (Access is restricted to internet addresses registered to the United States, Canada, Mexico and Australia). Maybe the owner could allow individual IP addresses through their firewall.


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## ronparise (Dec 16, 2012)

LLW said:


> Actually, it means a lot of owners have been delinquent in making loan payments or maintenance fees in the recession, and the credits went back to Wyndham. That's why they sell to even those with poor credit history - if somebody defaults after paying for a while, they just take the credits back. The punishment can be very swift since it does not include foreclosure of deeded property.
> 
> The number of owners have been slowly increasing back up again since the economy improved.
> 
> Reading the Independent Auditor's Report (available to owners) and watching the Annual Owner Meeting webcast would tell you exactly what happened.



Im sure you are right regarding the reason the number of owners went down, But that doesnt change the fact. The number is dowm.  That the number of owners is now going up is testament to the sales ability of the Wyndham machine. Good for them and good for you for giving credit where credit is due.   I happen to think (no data here)  that it is also true that the average number of credits per owner is also going up.  Which I think is testament to the quality of the product and the intelligence of the serious Worldmark owner in the secondary market


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## am1 (Dec 16, 2012)

ronparise said:


> I happen to think (no data here)  that it is also true that the average number of credits per owner is also going up.  Which I think is testament to the quality of the product and the intelligence of the serious Worldmark owner in the secondary market



Or point inflation.  That in the case with Wyndham.


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## lbrannma (Dec 16, 2012)

*point inflation*

It was the fear of point inflation that led me to write my initial post (akin to the Fed increasing the money supply). However, I was assured by previoús posts that there are limits to this. 

Lance


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## ronparise (Dec 17, 2012)

lbrannma said:


> It was the fear of point inflation that led me to write my initial post (akin to the Fed increasing the money supply). However, I was assured by previoús posts that there are limits to this.
> 
> Lance



point inflation with Wyndham, and credit inflation with worldmark are major legitimate concerns..also credit dilution

At the older Worldmark resorts  a two bedroom unit in red season is generally 10000 credits. At the newer resorts its more, Which means someone that bought  a 10000 credit account for one weeks vacation a year, is limited to those older resorts, or he has to buy more credits...inflation has devalued what he owns


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## Angry_Bird (Dec 17, 2012)

Some would interpet the by-laws that the cost per credit was supoosed to increase leaving the numbet of credits required to be the same.


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## cotraveller (Dec 17, 2012)

LLW said:


> The number of owners have been slowly increasing back up again since the economy improved.
> 
> Reading the Independent Auditor's Report (available to owners) and watching the Annual Owner Meeting webcast would tell you exactly what happened.



Based on the financial data presented at the 2012 Annual Owners meeting, the WorldMark ownership base continues to decline. It was reported at the meeting that there was a 2% decline in the ownership base for 2012.  The number of WorldMark owners has declined from a high of a little over 274,000 owners in 2008 to just over 238,000 now.

Over that same period the average account size has increased from about 10,000 credits to a little over 12,000 credits.  Current account owners are adding more credits to their accounts and there is also the possibility that the smaller accounts are the ones which more often fall in arrears and reposessed.


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## LLW (Dec 18, 2012)

ronparise said:


> point inflation with Wyndham, and credit inflation with worldmark are major legitimate concerns..also credit dilution
> 
> At the older Worldmark resorts  a two bedroom unit in red season is generally 10000 credits. At the newer resorts its more, Which means someone that bought  a 10000 credit account for one weeks vacation a year, is limited to those older resorts, or he has to buy more credits...inflation has devalued what he owns



In addition, he is facing competition for booking (of the 10K-credit resorts) from new owners who bought 10K of the 13.5K credits from the newer resorts. WM has no home resort advantage - all owners may starting booking every resort at the same time.


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